832.50 JTC/11–1848: Telegram

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

confidential

1201. Mr. Abbink requests message in following paragraph be delivered to Secretary of Treasury. Mr. Abbink asked my opinion about matter. I told him I saw no objection in principle to his suggestion but that I felt it essential from policy point of view that his recommendation [Page 368] be cleared through Secretary of State. If Department has any objections it would be appreciated if they may be telegraphed at earliest convenience.

Following is message for Secretary of Treasury from Mr. Abbink: “Work of Joint Commission is reaching point where it appears Brazilian members may be willing to espouse strong principles looking to maximum self-help plus employment of foreign skills and foreign private capital rather than large government loans in development of Brazil. However, nationalistic thinking persists within Brazilian delegation which is particularly true among those who are entirely unacquainted with the United States and its development. I intend therefore to propose to Brazilian delegation that prior to completion of joint report meetings of joint commission be held in US for period of four to six weeks. My purpose is to give Brazilian members opportunity to witness our free enterprise development first hand and to talk with businessmen, financiers, Government and World Bank officials and thus measure interest in the development of Brazil through adoption sound measures. I feel strongly this approach is desirable to enhance opportunity for a sound, useful report worthy of future implementation and feeling you are in accord with objectives, and as the time appears propitious I suggest it will be helpful if you will personally telegraph to Finance Minister Correa e Castro an invitation to Brazilian members to participate in such meetings in US, the invitation to include the Minister. I have informally discussed the idea with an influential member of Brazilian delegation who strongly endorsing it sounded out Correa e Castro who said he would welcome invitation to send Brazilian members to US. Presumably Brazilian Government will pay expenses Brazilian members though obviously I have not discussed this point.

The discussions could probably start in January in Washington and should be supplemented by visits elsewhere as it is important Brazilian members get comprehensive picture of our industrial, transportation, agricultural, power, mining and petroleum development.

It seems advisable that joint report be finalized in Brazil and if this proves true I would plan to return to Rio for that purpose if so instructed.”

Johnson