301. Memorandum From the Assistant Secretary of State for Inter-American Affairs (Holland) to the Director of the Office of South American Affairs (Atwood)1

SUBJECT

  • Eyes Only Telegrams of Ambassador Kemper

I believe that you should gather up the various “Eyes Only” cables that the Under Secretary has been getting from Ambassador Kemper and draft a reply to go out from the Under Secretary. The reply should point out that the United States is eager to do everything that it properly can to meet Brazil’s emergency; that we are loath to undertake a large aid or assistance program unless there is some assurance that it will be effective to avert a financial crisis in Brazil and that it will not simply be a measure to postpone a financial crisis; that we are working hard to achieve this end and are not getting the cooperation from the Brazilians on their cruzeiro deficit and on their coffee marketing policies that is essential. The purpose of the cable would be to complete the record in the event Ambassador Kemper ever publishes his cables in an attempt to discredit our policies in regard to Brazil.2

  1. Source: Department of State, OSA Files: Lot 58 D 42, Brazil 1955—Economic (General). Confidential.
  2. The Department conveyed this message in telegram 602 to Rio de Janeiro, January 25. “US continues ready assist Brazil,” the telegram reads in part, “but reluctant undertake aid or assistance program unless Brazilian Government ready, willing and determined take those measures which will ensure that assistance will avert and not merely postpone crises. Meanwhile US ready sit down and discuss concrete assistance program.” (Ibid., Central Files, 832.10/1–2555)