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

815. Your 713.2 Embassy should seek early, appropriate opportunity to explain to Finance Minister Moreira Salles, and to other GOB officials as Embassy considers desirable, that while we intend to fulfill our financial commitments to Brazil under the international financial stabilization arrangements (Dillon-Mariani announcement May 17, 1961), our intention to do so is based on the understanding that Brazil intends to go [Page 447] ahead with the stabilization program described in its standby arrangement of May 17 with the IMF. Begin FYI. Department explained foregoing position to Brazilian Charge Bernardes September 11 prior his departure for Brazil on consultation. Treasury suggested to Bernardes that Finance Minister might wish attend Vienna IMF meeting which would provide opportunity for discussions with IMF and US officials. End FYI. Embassy should state it would be pleased to receive, for transmittal to USG, any assurances which Finance Minister can give respecting Brazil’s intentions to maintain its stabilization program.

Begin FYI. Understand that Brazil has not kept its commitments to IMF to adhere to specific ceilings on currency issue, bank credits, budgetary deficits and expenditures on coffee. End FYI.

  1. Source: Department of State, Central Files, 732.5-MSP/9-861. Confidential. Drafted by Hembra; approved by Woodward; and cleared by Martin, Springsteen, the Export-Import Bank, and Treasury.
  2. Document 214.