Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

328. Memorandum of a Conversation, Department of State, Washington, April 30, 1956¹

Washington, April 30, 1956

SUBJECT

• Communism in Brazil

PARTICIPANTS

• For U.S.
• The Secretary
• Assistant Secretary Holland
• A. José de Seabra, interpreter
• For Brazil
• Vice President João Goulart²
• Ambassador Muniz
• Mr. Pinheiro, Economic Adviser
• Mr. Nascimento Silva³

After an exchange of greetings and amenities the conversation went as follows:

Mr. Holland stated that he was very glad that Mr. Goulart will have many opportunities to come in contact with organized labor in the United States.

Vice President Goulart stated that he is looking forward with great interest to meeting many of the labor leaders and workers in the United States.

Ambassador Muniz said that such contacts are very important especially on a “person to person” basis and if they can be increased a better understanding among the workers of our countries can only lead to better understanding among our countries.

The Secretary said that in the United States there is a certain amount of communist penetration, especially in some labor unions and some educational institutions. Communists are interested in subverting organized labor and young people.

Vice President Goulart said that Mr. Holland is well aware of what the problems are in Brazil. It would be foolish, of course, to say there is no communist problem in Brazil. Communism finds a favorable climate in Brazil because of certain conditions, among which is the low standard of living of a large number of the population. Brazil is not asking for anything from the United States yet they want to be able to count on a sincere cooperation on the part of the United States so that their efforts to raise the standards of living may be successful. The Workers Party (PTB) which includes about 80% of the workers of Brazil is in the forefront of the fight against communist subversion, because it has something to offer the workers in the defense of their legitimate interests.

Mr. Holland stated that a strong labor movement is the most effective bulwark against communism.

The Vice President said that he knew but too well how communists tried to infiltrate labor unions and to undermine the workers party. In this connection he recalled the hard struggles he had to wage during the year he spent as Minister of Labor. Here again he said that at the very root of the difficulties encountered in Brazil today was the fact that far too many workers were getting wages below the minimum living standards. Under such conditions the communists fester dissatisfaction and create confusion by making false promises that could not be fulfilled at present. Now, if the rate of industrialization of Brazil is accelerated, the conditions favorable to the spread of communism will disappear, and then it will be possible to oppose the communists with deeds instead of just words. Also rapid economic development would bring greater overall stability.

Mr. Holland said that he is in agreement with the above remarks.

The Vice President stated that he felt that both Mr. Holland and Mr. Nixon had a sympathetic understanding and a keen awareness of the problems of Brazil. He went on to say that every time Brazilian workers are in a difficult situation because of increased costs of living, the communists gain ground as they are bound to thrive on any hardships that beset large numbers of people. In the divided world of today Brazil is unquestionably on the side of the democracies, and with the cooperation of the United States it will achieve a degree of development that will forestall any danger.

The Secretary elaborated on the depth and breadth of cooperation and understanding that has always existed between the United States and Brazil. United States-Brazil friendship is of paramount importance to the United States. He mentioned the very valuable contributions of Brazil to the cause of better international understanding: at Caracas, the role of Brazil in the framing of the anti-communist declaration;⁴ time and again, how Brazil has interpreted the feelings and aspirations of the United States to other Latin American countries. The Secretary expressed gratification at the visit of Kubitschek and now Goulart, such visits being a symbol of a sound relationship, both personal and official, that holds the key to the unity of the Americas. He concluded by saying that our foreign policy was guided by the above principles and felt confident that Brazil’s was also.

The Vice President at this time paraphrased some of the remarks made before the United States Senate:⁵ his coming here as the representative of a new political generation which is resolved to bring about a renovation in Brazil and wishes to strengthen the bonds of friendship between the two countries. He was glad to have the opportunity to discuss frankly the social problems of present-day Brazil, as the spokesman for the Workers Party from which he brought the most cordial greetings to the people of the United States.

The Secretary, starting from the basic consideration that in the world of today no country is too big or too strong to stand alone, but rather that countries depend very much on one another, went on to touch upon the following points:

1) The error of the Soviet leaders in wanting to become strong by ruling ever increasing numbers of subjugated peoples. It turns out that the apparent strength acquired in this manner becomes, in the long run, an actual weakness.

2) Our realization that true greatness lies not in making people do what they don’t want to do but in enabling them to fulfill their aspirations.

3) The basic fact that if we help one another there will be true greatness for all. Such is the spirit that should animate the OAS as well as the vital relationships between the United States and Brazil.

The Vice President expressed great pleasure at the remarks of the Secretary with which he agreed, adding that the reason why he fought so strongly against communism was that he was categorically opposed to any form of tyranny.

The Secretary pointed out that no country had ever gone communist through the choice of her people. In the Soviet Union about 200 million are controlled by a party representing only about 3% of the population.

The Vice President said that if Brazil can successfully develop her economy, she will be in a position to liquidate the communist menace and to be more active in the defense of our common cause.

At this point after mentioning a most cordial “abraço” that Kubitschek was sending to the Secretary, the Vice President expressed on behalf of the President the hope that certain agreements would be continued or expanded.

This seemed to provide an opening for Nascimento Silva and subsequently Pinheiro, who mentioned certain economic questions that are under consideration: loans, debts, etc.

Mr. Holland mentioned a memo from the Brazilian Finance Minister dealing with economic and financial matters.⁶

The Vice President said that while granting that his was basically a courtesy visit to the United States, he nevertheless had been entrusted with a mission by President Kubitschek and therefore he hoped that the attitude of Secretary Dulles and Mr. Holland would be most understanding with regard to economic matters.

In conclusion he stated that his own mission was to bring from the young generation of Brazil the warmest “abraço” together with an affirmation of loyalty and renewed wishes for ever stronger ties of friendship.

1. Source: Department of State, Secretary’s Memoranda of Conversation: Lot 64 D 199. Drafted by José de Seabra of the Office of Language Services on May 2.
2. Goulart was in the United States for a 4-day official visit, April 30–May 3. Nixon had invited Goulart to visit the United States during his trip to Brazil in February. Documentation on Goulart’s visit is ibid., Central File 033.3211.
3. Geraldo Eulalio Nascimento e Silva of the Brazilian Ministry of Foreign Affairs.
4. Reference is to Resolution XCIII, titled “Declaration of Solidarity for the Preservation of the Political Integrity of the American States Against the Intervention of International Communism,” approved on March 28, 1954, at the Tenth Inter-American Conference which met at Caracas, March 1–28, 1954. For text of the resolution, see Tenth Inter-American Conference: Report of the Delegation of the United States of America with Related Documents (Department of State Publication 5692, Washington, 1955), pp. 156–158. For documentation regarding the conference, see Foreign Relations, 1952–1954, volume iv, pp. 264 ff.
5. For text of Goulart’s remarks, see U.S. Congress, Senate, 84th Congress, 2d Sess., Congressional Record, pp. 7281–7283.
6. Apparent reference to a memorandum handed to U.S. representatives on February 2 by Brazilian Finance Minister Mario José Alkimin. Pointing out the dangerous level of inflation in Brazil, which had brought about social unrest, restriction of exports, and misguided investments, the memorandum proposed a “consolidation loan” from the United States of $700 million to be repaid over 20 years after a 3-year grace period. The memorandum is enclosed as Appendix A to the Working Group Study on Brazil, prepared by the ABC Working Group for the NAC Staff Committee and forwarded to the committee on May 7. (NAC Staff Document No. 749 (Revised); Department of State, NAC Files: Lot 60 D 137, Staff Documents) The ABC Working Group was set up by the NAC to prepare in-depth studies of economic conditions in Argentina, Brazil, and Chile.