810.20 Defense/163⅝: Telegram

The Ambassador in Brazil (Caffery) to the Secretary of State

290. For the Under Secretary. My telegram No. 286, June 17, 3 p.m. We had another conversation with Aranha this morning. Aranha agreed that while Miller is getting from Dutra the lists of Brazilian armament needs, at the same time he will discuss plans for military cooperation between the United States and Brazil in the event of aggression from any quarter.

As I have stated before, the Brazilian Government will look to us for credit facilities for their arms purchases. In the case of arms [Page 49] purchased from private manufacturers they will want assistance of the sort now being provided in other cases by the Export-Import Bank.

Aranha set out forcibly this morning that if we do not find means to assist Brazil in acquiring armament, the Brazilian military authorities will necessarily turn to Germany and at the end of the war acquire armament (possibly free) there. He added that if all of the Brazilian armament is acquired in Germany it would be only natural that it should occur to the military authorities that German military instructors might be more efficient here than Americans or others. In this connection, a telegram was received today from Genoa stating that a new shipment of anti-aircraft guns has arrived at Genoa and is at the disposition of the Brazilian authorities.