286. Memorandum of a Conversation Between Secretary of State Herter and President Kubitschek’s Adviser (Schmidt), Rio de Janeiro, February 25, 19601
SUBJECT
- US-Brazilian Problems
On three separate occasions Mr. Schmidt sought me out in order to talk to me about the situation in Brazil. The first was at the reception before dinner in Brasilia;2 the second was before President Kubitschek’s [Page 767] dinner;3 and the third at the Foreign Office just after I had concluded luncheon with Foreign Minister Lafer.4
On the first occasion, Mr. Schmidt told me that he was not a tactful man but that he believed in speaking the truth; that the problems between the United States and Brazil were not primarily economic problems but essentially psychological and political. He told me that a greater awareness of Brazil and a better understanding of her desire to be considered a great power entitled to consultation on world problems was of paramount importance and that economic problems would take care of themselves. He added that he had become a very good friend of the United States and that he felt the atmosphere between our two countries had improved very materially during the last year. He expressed the hope that in any talks with Brazil the element of consideration for Brazil as a friend and partner should be strongly stressed.
On the second occasion, Mr. Schmidt again sought me out and told me that the President’s speech to the Chamber of Deputies had had a profound effect and, in particular, the President’s stress on the aspirations contained in Operation Pan America as well as his eloquent exposition of the similarities in our respective ideologies had been particularly welcomed.
On the third occasion, Mr. Schmidt said he wanted to talk to me alone for a few minutes. He then told me that he was basically a poet and that he approached the problems of his country from that point of view rather than as a statesman. He first emphasized that the inflation which Brazil had gone through and was going through was an essential part of the dynamic economic programs which President Kubitschek had put into operation and that those dynamic programs were essential in order to retain popular support and maintain a democratic form of government in the country. He said it was essential for us to understand this since it was the key to the whole relationship between Brazil and the International Monetary Fund which was thinking in terms of conventional economics and not in terms of political necessities. Even though I told him that Mr. Rubottom and I had had talks with Mr. Lafer along the same lines this morning for over an hour, Mr. Schmidt continued on this theme for some time. Finally, he told me that while he was not a statesman he could be frank with me as a friend. He then said he thought it was very unfortunate that the President had mentioned the two and a half billion dollars worth of loans to Brazil and had also referred to our efforts to relieve starvation. These remarks of the President were likely to play into the hands of [Page 768] the left-wing which continuously harped on our rubbing in the amount which we had contributed in the way of loans, etc. Mr. Schmidt then expostulated on the fact that the United States was the most generous nation in the world but that this was purposely left unrecognized by the left-wing groups and that we must be careful not to give them any ammunition lest Brazil turn into a larger and more dangerous Cuba.
Finally, Mr. Schmidt volunteered the fact that the American banks in Brazil were utterly selfish; did not have the interests of the Brazilian people at heart; and were conducted solely for the purpose of making money for their home offices in the United States.
As we parted, Mr. Schmidt said he was very tired and was going to Europe for a rest.
- Source: Department of State, Conference Files: Lot 64 D 559, CF 1596. Confidential. Drafted by Herter.↩
- The reception in Brasilia took place on February 23; for President Eisenhower’s remarks on that occasion, see Public Papers of the Presidents of the United States: Dwight D. Eisenhower, 1960–61, p. 210.↩
- The dinner took place at Rio de Janeiro, February 24; for text of a toast by President Eisenhower at that dinner, see ibid., p. 223.↩
- The luncheon took place at Rio de Janeiro, February 25; see supra.↩