Memorandum of Conversation, by Mr. Richard F. O’Toole of the Division of Brazilian Affairs

Participants: Mr. Roberto Campos, Brazilian Embassy
Dr. Silvio Froes de Abreu, Consulting Engineer, Brazil
AP—Mr. Rayner37
PED—Mr. Townsend38
RA—Mr. O’Toole

At the invitation of Mr. Townsend of PED I joined him in Mr. Rayners office this morning to meet Mr. Campos39 of the Brazilian Embassy who presented Dr. Silvio Froes de Abreu, a Brazilian consulting engineer, who is visiting this country for the purpose of studying chemical soil analysis.

Dr. Abreu prefaced his remarks with a statement that it was at his instigation that President Vargas had ordered drilling in the Bahia oil fields and that before leaving on this trip the President had asked him to look into the possibility of participation of private American oil companies in Brazilian oil development. Dr. Abreu then remarked that Brazil recognized the impossibility of leaning on the United States indefinitely for its petroleum requirements and said that he would like to have the Department’s cooperation and advice and would like to know its attitude with regard to participation of American private capital along the lines indicated above. To this Mr. Rayner answered that the Department was very much interested in seeing [Page 681] Brazilian oil resources developed by American private capital on a basis of equality with any other foreign private capital and that we would be glad to cooperate to an extent that would not constitute interference on the part of this Government.

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  1. Charles Rayner, Office of the Petroleum Adviser, Department of State.
  2. Rex Townsend, Petroleum Division.
  3. Roberto de Oliveira Campos, Second Secretary of Brazilian Embassy in the United States.