Foreign Relations of the United States, 1958–1960, American Republics, Volume V

261. Memorandum From the Assistant Secretary of State for Economic Affairs (Mann) to the Under Secretary of State for Economic Affairs (Dillon)¹

Washington, January 26, 1959.

SUBJECT

• Brazil and Operation Pan-America

Problem:

Brazil is attempting through Operation Pan-America to obtain the assurance of continuing large-scale financial assistance from the United States Government for a general program of economic development in Latin America. The program would set a series of goals and support levels, and the United States would be expected to underwrite the attainment of the support levels. The United States cannot accept the Brazilian proposals, and the problem is to resolve the issue constructively, with as little discord as possible.

Discussion:

The United States Government recognizes the need for continuing coordinated action to further economic development in Latin America, especially in view of the facts that Latin America got a late start in increasing productivity and its population has tripled in the last fifty years, and is expected to triple again in the next forty, reaching the 590 million mark by the turn of the century. However, the United States Government is neither willing nor able to undertake a commitment of the sort which Brazil appears to have in mind.

Brazil is pushing its proposals aggressively. Its tactics, if continued, may leave Brazil in an advanced and isolated position from which it will be hard to retreat. It would seem advisable, therefore, for the United States to seek an immediate understanding with Brazil as to the accomplishments to be expected from Operation Pan-America. Once bilateral agreement is reached on this matter, the cooperation of others can be sought and the work of those engaged in Operation Pan-America can be directed toward an agreed objective.

Recommendations:²

1. That you tell the Brazilian representative that the United States Government will gladly participate in a coordinated program of development for Latin America but that it cannot undertake a commitment, explicit or other, to underwrite the attainment of specified general economic goals.

2. That you review orally with the Brazilian representative the enclosed outline (Tab A)³ as a preliminary skeleton draft of a general declaration or Resolution setting forth a program of action for Operation Pan-America.

3. That you tell the Brazilian representative that the attached outline is tentative and, of course, subject to modification. Additional proposals which Brazil, the United States, and others may advance in the course of current discussions in the Working Group of the Special Committee of 21⁴ may also be taken into account in formulating a final version for consideration by the Special Committee of 21.

4. That you indicate to the Brazilian representative that you hope that Brazil will agree to the general approach indicated in the suggested Resolution and that Brazil and the United States may, in collaboration with the other countries participating in Operation Pan-America, agree upon a series of more detailed resolutions directed toward the implementation of the operative clauses of this general Resolution.

1. Source: Department of State, Central Files, 811.0020/1–2659. Official Use Only. Drafted by Adair, Carr, and Propps.
2. There is no indication on the source text of Dillon’s action on the recommendations.
3. Not printed.
4. The Working Group, established by the Committee of 21 during its first meeting in Washington, November 17-December 12, 1958, began meeting at Washington on January 15, 1959. Documentation on its work is in Department of State, Central File 363.