Memorandum by the Assistant Secretary of State for Inter-American Affairs (Miller) to the Secretary of State
In connection with my memo to you on Brazil,1 I attach a memorandum which was given to me this morning by Messrs. Black, Garner,2 and Anderson of the International Bank. This is the most encouraging thing that has ever come out of the International Bank in relation to Latin America and makes it imperative that we try to get there promptly. You will appreciate that the memorandum is tentative in so far as concerns the statements of the Department’s position. I have informed Mr. Black that you will discuss this matter with Secretary Snyder or discuss it in a Cabinet meeting with the objective of having Secretary Snyder take this up in the NAC. It seems to me that this is important in view of Mr. Black’s proposal to put this matter up to the Board of his Bank in which event it would be necessary for the U.S. Executive Director to be instructed by the NAC. As to the details of the respective roles to be played in Brazil by the International Bank and the Eximbank, this should be negotiated out between the International Bank and the Eximbank under the auspices of Secretary Snyder and Mr. Martin prior to final action by the NAC.
Mr. Black also confirmed this morning that he is prepared to assign a full-time officer to Brazil to maintain close liaison with the proposed Joint Commission.3 Under these circumstances, if we can [Page 779]reach agreement on the program outlined in the attached memorandum, we will have the basis for a really effective implementation of Point IV in Brazil and make it a model for all other countries in; Latin America. We have been working towards this end since July 1949 and we need now just one push from you to put this across.
- See footnote 4, below.↩
- Robert L. Garner, Vice President of the IBRD.↩
- Text of the Agreement Relating to Technical Cooperation, which entered into force by an exchange of notes at Rio de Janeiro on December 19, 1950, is printed in United States Treaties and Other International Agreements (UST), vol. 2 (pt. 1), p. 845. Text of a subsidiary Agreement that created a Joint Commission for Economic Development, effected by an exchange of notes in Rio on October 21 and December 19, 1950, and in force from the latter date, is included ibid., pp. 864–871. The Department’s press release of December 21, 1950, regarding these agreements, is printed in the Department of State Bulletin, January 1, 1951, p. 25. File 832.00 TA for 1950 has detailed information respecting the negotiation of the agreements.↩
- In his memorandum of October 26, 1950, to the Secretary, not printed, Mr. Miller had advanced proposals similar to those above. Additionally, he had suggested limitation of Export-Import Bank loans to Brazil, within the two mentioned categories, to a dollar amount of $100 million over the period 1951–1954. (832.10/10–2050)↩