The Acting Secretary of State to the Chargé in Brazil (Daniels)
620. Embtel 845, May 7. Dept believes Emb should avail itself of opportunity to present informally US Govt’s views on liberalization Brazilian laws affecting petroleum.
Emb may wish to emphasize following points:
- US Govt believes Brazil’s attainment self-sufficiency petroleum at earliest economical moment a highly desirable element in hemispheric defense quite aside from its important contribution to Brazilian economic development.
- Attainment self-sufficiency dependent upon long range, comprehensive and properly integrated program of search for oil which over large and geologically unexplored areas would involve heavy initial capital investment and attendantly large risks.
- Minimization of risks and rapid attainment objective suggests desirability of participation in program of highly skilled organizations familiar through long experience with integration of broad programs.
- Properly controlled, investment of foreign capital would be asset to Brazilian economy without prejudice to Brazilian patrimony.
- Liberalization of present petroleum laws would facilitate Brazilian self-sufficiency and would be in line with commitments at Chapultepec.