237. Telegram From the Department of State to the Embassy in Brazil 1

1066. Deptel 1052.2 Anderson reply Alkmim3 delivered Peixoto today, states we recognize Brazil’s balance-of-payments problem and see need for far-reaching corrective measures. Poor coffee sales only partial explanation. US Govt has suggested to GOB need for formulation comprehensive program to assure that any added external aid would effectively contribute stability, and notes GOB now consulting IMF. We believe GOB plans should be such as to satisfy IMF. For [Page 667] immediate needs suggest Brazil seek dollar loan from financial community by pledging unencumbered gold. Assures our sympathetic interest constructive solution to problems.

Full text pouched letter this date Ingersoll to Ambassador.

  1. Source: Department of State, Central Files, 832.10/3–2158. Official Use Only; Priority. Drafted by Ingersoll and signed for Dulles by Bernbaum.
  2. In telegram 1052 to Rio de Janeiro, March 18, the Department reported that Peixoto delivered Alkmim’s letter to Anderson. (ibid., 832.10/3–1858) Regarding the letter, see Document 235.
  3. Dated March 21. (Department of State, ARA/REA Files: Lot 61 D 248, Brazil, 1957–1959)