Foreign Relations of the United States, 1949, The United Nations; The Western Hemisphere, Volume II

832.50 JTC/10–449

Memorandum by the Officer in Charge of Brazilian Affairs (Clark)¹

confidential

[Washington,] October 13, 1949.

Subject: Future Treaty Negotiations with the Brazilians

Following up Mr. Miller’s memo of October 6,² which suggested that a meeting with Mr. Winthrop Brown³ be arranged to explore the subject topic, I can report that Mr. Tewksbury⁴ and I met with Mr. Brown yesterday at 12 noon. Mr. Corliss had originally planned upon going with us but he was indisposed. Mr. Nufer,⁵ who was also informed of the meeting, had a Prior engagement.

Mr. Tewksbury and I explained to Mr. Brown that there are positive indications that the Brazilian Government does not find itself able to carry out negotiations on the basis of the draft of a proposed treaty of commerce, economic development and friendship which was submitted to the Brazilians through Mr. Bulhões several months ago. I repeated to Mr. Brown in substance the information contained in Ambassador Johnson’s letter to me dated September 30² and stated that, while the draft has been studied, the Brazilians seem to have lifted out those clauses which apparently pertain to investment matters and that, with the return of the Brazilian Ambassador (he arrived yesterday, October 12), the probabilities are that he has been instructed to approach the Department and suggest the negotiation of a treaty which would cover only investment matters. I pointed out to Mr. Brown that this was not unexpected and was in keeping with the Presidential announcement of May 21, in which it was agreed that President Dutra and President Truman would appoint technicians to negotiate “an appropriate treaty that would stimulate the mutually beneficial flow of private investment”.

Mr. Tewksbury and I both inquired of Mr. Brown as to his position and whether he felt that in any subsequent conversations with the Brazilians it would be necessary to attempt to insist upon the negotiation of the draft as presented or whether conversations could be held on a basis of a briefer text which would concern itself largely with investments. Mr. Brown pointed out that certain of the clauses in the draft treaty had been included at the recommendation of American business people with whom consultations had been held. He stated that perhaps some of these should be eliminated but he emphasized the desirability that any treaty to be discussed and negotiated should be of sufficient breadth so as to cover the miscellany of conditions—for instance, the right of an American firm to own or lease property in Brazil—all of which contribute towards an atmosphere which will, it is hoped, encourage the investment of private funds in Brazil.

It was suggested to Mr. Brown that certain of the chapters and paragraphs of the draft treaty are unconstitutional from the Brazilian point of view, and he expressed complete willingness to the elimination of these elements. Mr. Brown repeated his feeling, a point with which Mr. Tewksbury and I heartily agreed, that any treaty between the two countries, to serve a practical and useful purpose, must be sufficiently flexible to cover a number of items which are related to the strictly investment or financial phases.

It was agreed that this matter should be left in suspense until some indication has been received from the Brazilians that they are desirous of renewing conversations on this subject. I told Mr. Brown that I had gained an impression that there was some feeling in the Department that any conversations with the Brazilians should be on a horse trading basis, that is, that we should demand the long form treaty—a text including the shipping clauses, the right to free religion, et cetera—and that unless the Brazilians were willing to go along with us on this basis we should not pursue the matter further. I gained the impression from Mr. Brown that this all-or-nothing impression which I had was certainly not his feeling and that he was in agreement with our attitude that, if the Brazilians wish to open negotiations on what might be described as an investment treaty, he would approve on a basis that such a treaty should be as flexible and as inclusive of related matters as is possible.

DuWayne G. Clark

1. The memorandum was addressed to the Assistant Secretary of State (Miller) and the Deputy Assistant Secretary of State (Barber) for Inter-American Affairs.
2. Not printed.
3. Director of the Office of International Trade Policy.
4. Director of the Office of East Coast Affairs.
5. Mr. Albert F. Nufer of the Bureau of Inter-American Affairs.
2. Not printed.