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

234. For Ambassador from Martin. In reviewing recent developments in Brazil as reported by Embassy, I am increasingly concerned that US image in Brazil, rightly or wrongly and probably largely wrongly, is dominated by three things: (1) pressure for financial austerity in support of IMF; (2) protection of US investments especially in public utilities; and (3) support for Governor Lacerda in his opposition to Goulart.

The first two are charges we must of course accept as we feel these objectives are in the long term interest of Brazil even more than US. The third, which is of course not well-founded, probably stems from the conservative [Page 506] image we have as a result of the first two points, as well as the probable tendency of the US business community in Brazil, a large and noticeable one, to take positions consistent with those of Governor Lacerda. It is probably also due in some part to erroneous claims of support by Lacerda, and to even more erroneous charges of support by irresponsible leftists. While I accept the impossibility of a public repudiation of Lacerda, I continue to feel that his general approach is too far on the right and too fanatically anti-Goulart to be accepted as a useful contribution to US objectives, and his tactics are equally irresponsible and unacceptable.

Regardless of the reasons, however, this is a false picture of US policy both in Brazil and in the Hemisphere. Its continuation can damage our position not only in Brazil but in other countries. It seems to me that we must seek means for impressing on Brazilian people and Government a better rounded picture of our objectives for Brazil. What I have in mind are stronger means of conveying this broader message supplementary to your speeches throughout the country with respect to economic development.

The lead is given, I think, in President Kennedy’s August 2 press conference statement2 which was picked up so avidly by President Goulart as if it were news. We should find additional means for emphasizing more clearly and widely by word, and insofar as possible by action, that we favor social and economic reform and development just as strongly as we favor financial stability and protection of foreign investment. You have shown that though it is more subtle point to get over to a mass audience, stability as a means to reform and development can also be defended. Such an emphasis would balance out the two rather negative parts of the image and by the difference which they would publicize between our views and those of Governor Lacerda on reform issues, indirectly accomplish much to disassociate ourselves from him without need for direct repudiation.

I realize the risks we may run in coming out in Brazil for reform in the same forthright way we do in other countries in view of the careless and often misdirected talk about reform which comes from Goulart and his entourage. I should think however that we could find means to prevent our reform objectives from being too readily confused with the demagoguery which stems from these sources, though we would have to confess that our ultimate objectives are similar to those which he and his associates announce.

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I am sure such a program will not be an easy one to develop but it seems to me to be of early and crucial importance. I know we have discussed this general subject previously but I feel we must discuss it again. I would like urgently your views and recommendations.

In this connection a significant means for broadening the picture of the US could of course be a visit by President Kennedy, for his speeches would clearly have to stress in Brazil as elsewhere the revolutionary aspects of the Alliance as we see it. What are your views?

Rusk
  1. Source: Kennedy Library, National Security Files, Countries Series, Brazil, August 21-31, 1963. Secret; Priority; Limit Distribution. Drafted by E.M. Martin; cleared by Weismann of ARA/BR, U.A. Johnson, and S/S; and approved by E.M. Martin.
  2. Reference is apparently to President Kennedy’s August 1 press conference in which he emphasized the commitment of the United States to help Latin Americans implement “revolutionary,” although peaceful, social and economic reforms through the Alliance for Progress. (Public Papers of the Presidents of the United States: John F. Kennedy, 1963, pp. 612-619)