611.35/5–150

Memorandum by the Secretary of State to the President 1

confidential

Subject: Effect in Brazil of Argentine Developments and Significance to Brazilian-American Relations of Possible Election of Vargas to Presidency

In summary, an improvement of relations between the United States and Argentina would probably be approved by most responsible Brazilian Government authorities. There would be an undercurrent of resentment on the part of some authorities, including the Foreign Minister, and strong criticism from an important segment of the press. Vargas’2 election as President of Brazil should not lead to a serious deterioration of relations between the United States and Brazil.

I. Estimate of Effect in Brazil of Improvement of Relations Between the United States and Argentina

Possible effects in Brazil have been weighed in considering improvement of our relations with Argentina. We have made clear to the Brazilians that we are prepared to assist them financially in appropriate [Page 714] ways. Brazil has been unable to plan projects for assistance, and will be unsettled generally until after the October elections.

Brazil and Argentina historically have vied with one another for the leadership in South America. Due to its active participation in the war, Brazil is convinced that it is entitled to special consideration. Hence any action which we may take to improve relations with Argentina will be criticized.

Responsible Brazilians and at least a part of the press will understand and approve action looking toward closer economic relations between the United States and Argentina, as it would benefit closer hemispheric political relationships and in the long run would improve general economic conditions. A large segment of the press, however, bitterly attacks anything that encourages the Perón regime.

Extension of financial aid to Argentina might develop into a domestic political issue in Brazil, especially if Vargas becomes a presidential candidate. Vargas might criticize Dutra3 as unsuccessful in obtaining aid from the United States whereas Argentina has been successful. The confused Brazilian political situation, in which domestic issues are few, is an open invitation to the exploitation of the theme of rivalry between the two countries.

We have diplomatic and public relations methods available to offset in some part criticism within Brazil.

[Here follows the portion of this memorandum printed on page 759.]

It may be of interest to you to know that Mr. Miller accompanied the President of Chile to New York and had a three-hour conversation with him4 in which Mr. Miller related to President Gonzalez Videla in detail the status and prospects of our negotiations with Argentina. The Chilean President said that, while relations between Chile and Argentina had been strained from time to time the last few years, he thoroughly approved of our plans with reference to Argentina on the ground that anything that eased tension between the United States and Argentina could only result in benefit to Chile in the long run. He said that he would be willing to state this publicly in any press conference if requested.

Dean Acheson
  1. In a memorandum, to the Secretary of April 6, 1950, Mr. Miller had stated in part: “It would be well for you to talk to President Truman before he sees [President Gabriel] Gonzalez Videla [of Chile] and review with President Truman what we are embarking upon with respect to Argentina. I suspect that President Truman may have some personal doubts on the subject on strictly ideological grounds. You might stress the fact that as a result of our new cooperative attitude in the economic field, I have been in a position to discuss with Peron and Cereijo the question of civil liberties in general and that in particular I have gotten from Cereijo a personal commitment that newsprint will continue to be granted to La Nacion and La Prensa as long as he is in office.” (725.11/4–650)

    President Gonzalez Videla was in the United States from April 12 to May 3. No record of discussion between Mr. Acheson and President Truman along the lines outlined above has been found in Department of State files.

    In a memorandum of April 24, the Secretary stated that he had that day gone over Argentine developments with the President, “… who was greatly pleased at the progress we were making. He was most complimentary to Mr. Miller on these achievements. The President asked me what, in my judgment, would be the effect upon Brazil over the relations which we were achieving with Argentina, and also what would be the significance of Brazilian-American relations if former President Vargas were reelected.” (611.35/4–2450) The Secretary’s memorandum in response was prepared by DuWayne G. Clark, Officer in Charge of Brazilian Affairs, and Randolph A. Kidder of the Office of East Coast Affairs.

  2. Getúlio Dornelles Vargas, former president of Brazil and candidate in the 1950 elections.
  3. Eurico Gaspar Dutra, President of Brazil.
  4. On April 15, 1950.