346. Telegram From the Acting Secretary of State to the Embassy in Brazil1
490. Following summarizes Rubottom–Peixoto meeting December 7 arranged latter’s request:
- 1.
- Brazil request merchant vessels. Rubottom assured Department’s willingness seek Congressional authorization sale vessels if they available and surplus to U.S. needs, and that Department seeking views other agencies. Suggested present time might be inopportune due international uncertainties and warned it might not be possible approve first trip cargo this time if vessels eventually sold to Brazil.
- 2.
- Interest charge on military aircraft credit. Peixoto said Brazil not informed this charge would be made until negotiations completed and did not provide for it in budget. Said if interest required Brazil might not be able purchase aircraft which it intends use continental defense. Minister Valle2 said this problem could influence attitude Air Ministry on Defense Sites. Rubottom explained reasons for NAC interest requirement but said question would be investigated to assure no discrimination against Brazil.
- 3.
- Rubottom outlined urgency our need interim right entry Fernando de Noronha and asked Peixoto communicate this information promptly his government and to President if possible.
- 4.
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Peixoto asked if Brazil would receive adequate petroleum supplies view Suez crisis. Rubottom said whole question under study and did not know what eventual situation might be. Said we have hemisphere needs in mind and would seek equitable treatment. Said present indications are Western Europe would suffer cutbacks 20 to 25% and emphasized that problem one of transportation shortage rather shortage petroleum.
. . . . . . .
- 6.
- While press here sought link Peixoto visit to possible protest guided missile mishap, he only made jocular reference to it.