811.516 Export-Import Bank/7–2347
Memorandum by Mr. Richard F. O’Toole of the Division of Brazilian Affairs to the Chief of That Division (Dawson)
Subject: Visit of Brazilian Ambassador to Export-Import Bank on Thursday July 17.
Mr. Stenger told me that on the occasion of this visit Ambassador Martins, accompanied by Celso Garcia (Second Secretary) visited Mr. Martin, President of Export-Import Bank.
The Ambassador, apparently in a sour mood, intimated that Brazilian financial projects were not getting the attention they deserved and said that he was leaving for Rio in four days and wished to know whether there was anything about the Bank’s interest in Brazil’s affairs that he ought to take back with him. Mr. Martin outlined the difficulties encountered with the Rio Doce project and read excerpts from a recent telegram about that situation, remarking that the cessation of work and the fact that a lot of valuable equipment was left lying around as a result, was not very satisfactory to the Bank’s interest. Mr. Martin then said that the Bank wished to get along as harmoniously as possible with Brazil but that the situation of the Rio Doce project, and the necessity for its completion, created difficulties for the Bank.
Apparently, the Ambassador then went into a tantrum alleging, in effect, that this Government was pulling away from the good neighbor policy and he demanded to know whether Mr. Martin was implying that Brazil would get no more financial assistance until the Rio Doce project was straightened out. Mr. Martin is said to have replied that he considered that to be a fair statement of the situation.
Both the Ambassador and Garcia then brought up the question of the loan application for the petroleum refinery at Rio de Janeiro and the failure to get any action on it up to then. Mr. Martin told him that the reason that no decision had been made was that there were certain questions to be settled relating to the new Constitution, and that the Bank had not yet obtained other adequate information on which to base a decision. The Ambassador then retorted that he was willing to [Page 450] telegraph Rio for any information that the Bank might need and he was joined by Garcia in sarcastic comments to the effect that the real reason for the lack of a decision was because the Bank had not yet gotten Standard Oil Company’s approval.