249. Telegram From the Department of State to the Embassy in Brazil1

1459. Peixoto arriving Rio Wednesday twenty-fifth Varig from New York.2

In meeting with Rubottom yesterday June 23 Peixoto deplored press interpretation Kubitschek speech as asking Marshall Plan for Latin America. Said President only seeks create a better US-Brazilian and Pan American understanding of the importance of development problem in order improve atmosphere for solution. Rubottom indicated this connection that while US according its long-standing policy appreciates how accelerated development can strengthen LA countries’ contribution Free World strength and is willing review extent to which it can contribute this end Kubitschek’s speech unfortunately did not stress importance of LA nations doing their part to more efficiently and effectively marshall their own and foreign private capital resources for development. Also emphasized need for more effective LA action against communist-nationalist efforts to impede development and promote disunity.

Peixoto said he thought problems should now be discussed at diplomatic level, preferably in Washington, preparatory to Secretary’s visit to Brazil, and that question of subsequent inter-American meeting and its nature should be held in abeyance pending further developments and progress. After stressing US preference for FonMins over [Page 689] Presidents meeting, if any to be held, Rubottom suggested Peixoto might wish to clarify Brazil’s aims to press in views speculation that two governments views in conflict.

Upon leaving Rubottom’s office Peixoto told press that Kubitschek did not have in mind Marshall Plan for LA and that two governments not in conflict over possible inter-American meeting. Said speculation about time and nature of such meeting premature and emphasized need for prior normal diplomatic level discussion of problems involved by all OAS members.

  1. Source: Department of State, Central Files, 832.10/6–2458. Confidential; Priority. Drafted by Siracusa and signed for Dulles by Rubottom.
  2. Ambassador Peixoto returned to Rio de Janeiro for consultations, June 25-July 21.