Office of the Historian

229. Memorandum From the Executive Secretary of the Department of State (Brubeck) to the President’s Special Assistant for National Security Affairs (Bundy)1

Washington,November 30, 1962.

SUBJECT

  • Brazilian Situation

The Department has been deeply concerned for some time with political and economic developments in Brazil. Following the return of the Draper Mission and the consideration of its report, the Department in collaboration with other interested agencies instructed Ambassador Gordon to take up with the President of Brazil our concern with both the political orientation of the Brazilian Government and the deterioration of its financial situation. (Telegrams attached at Tab A.)2

The Brazilian Government subsequently planned to send to the United States for financial discussions the ex-Foreign Minister, who is to be the new Minister of Finance, Santiago Dantas, and we had intended to raise with him also important political questions. The Brazilian Government has now determined to postpone Dantas’ visit until January because its stabilization program is not complete and therefore it is not yet ready to discuss the need for external financial assistance. We welcome this postponement since it will give us additional time to determine our future policies toward Brazil in both political and economic fields.

As a result of further discussions recently with President Goulart and other Brazilian officials, Ambassador Gordon has been able to [Page 480] explore the situation further, to probe President Goulart’s position and to confront him on significant issues in which we are in disagreement. We have commented in return on the Ambassador’s reports. (Telegrams attached at Tab B.)3

Notwithstanding the postponement of the Dantas’ visit Ambassador Gordon is arriving for consultations in Washington between December 4 and December 8, primarily on the Brazilian political situation but also on financial, aid, and other aspects of our relations with Brazil. It is hoped the Ambassador will have an opportunity to review the Brazilian situation with the President before his return to Brazil.4 As a result of the consultations with Ambassador Gordon we hope to have recommendations regarding our Brazilian policy, particularly in the short term, to submit to the President for his approval early in the week of December 10.5

PW Kriebel6
  1. Source: Kennedy Library, President’s Office Files, Brazil—General, 1962. Secret.↩
  2. None found attached to the source text.↩
  3. None found attached to the source text.↩
  4. No record of any such meeting appears in the President’s Appointment Book. (Kennedy Library)↩
  5. See Document 230.↩
  6. Kriebel signed for Brubeck above Brubeck’s typed signature.↩