113. Telegram 115636 From the Department of State to the Embassy in Brazil1
115636. Subject: Highlights of Secretary’s Luncheon for Silveira.
1. Following are highlights of exchanges during Secretary’s luncheon for Foreign Minister Silveira Saturday, May 10.
2. Trade consultative group. The Secretary urged Under Secretary Robinson to go to Brazil to discuss trade and commodity issues. (There was no discussion of a specific agenda.)
3. South Vietnamese properties. In response to a question from Silveira, the Secretary said we would take a decision early next week on the matter of the Algerians taking responsibility for protecting South Vietnamese property in the U.S.
4. U.S.-Brazil relations. The Secretary emphasized the great importance we attach to our relations with Brazil and our desire to consult at least on major problems despite mutual inability to agree on all issues. He also thanked Silveira for the frankness of his correspondence. Silveira responded that he thought this was a good way to build friendship. Brazil will never be strident and these interchanges can be helpful to both of us. Brazil can provide insights regarding Latin America.
[Page 314]5. PrepCon. Silveira asked what the U.S. intended to do now. The Special Session (of the U.N.) will probably be a mess. Brazil wanted to put oil and energy at the top of the agenda and then move on to other subjects. This would assure adequate attention to the energy problem. But the smaller countries must be allowed to talk about their problems as well and once this is recognized the LDCs will be more relaxed. The Secretary responded that we did not want to put raw materials questions into the PrepCon. We are prepared to talk about these issues but in some other forum. It was the U.S. impression that Algeria wanted to turn the meeting into a confrontation with the industrial world. However, we can try to reassemble the PrepCon early in the fall and see what comes of it.
6. Oil prices. Silveira maintained the Middle East conflict was the prime cause of high oil prices and that the problem could only be resolved between the U.S. and the USSR as the only ones capable of offering the necessary guarantees. The Secretary pointed out that there were many other causes of high oil prices and that the Arab-Israeli conflict was not governing. He also pointed out the difficulties of negotiations with the Soviets.
7. Consultations. The Secretary noted that he had issued instructions that we were never to do anything in the Western Hemisphere without consulting Brazil. Silveira responded that consultation would be more productive if not confined to Latin American-U.S. relations. Silveira thought consultations could be improved and suggested that lately there were too many small accidents occurring along the road of good relations. He specifically mentioned countervailing duties. The Secretary noted his genuine interest in consultation and possible machinery was discussed. It was agreed that whatever machinery is agreed upon should be flexible and chaired by the Secretary and the Foreign Minister. The matter will be discussed further in August when the Secretary hopes to visit Brazil. Meanwhile Itamaraty will develop its ideas on an agenda and submit them for the Secretary’s consideration.
8. Cuba. Silveira said Brazil could agree on a meeting to discuss Cuba without explaining at this time the formula to be used. He also said that Brazil would vote in favor of a freedom of action resolution at a later session of the OAS called to consider the Rio Treaty changes.
9. Portugal. Silveira said he did not think the Communists will end up in key positions, and there is a chance that the military situation may change. The key figure is Vasco Goncalves and he is emotionally confused. If he is changed the situation will alter drastically. It was agreed that there should be more systematic consultation on Portugal.
10. OAS Secretary General. The Secretary said we wanted to work with Brazil on this issue. Our only commitment is not to work against Orfila and we cannot support the Peruvian candidate. Silveira [Page 315] responded that Sapena Pastor would probably withdraw as a candidate but Brazil could not vote for Orfila. Brazil would look with favor on a Central American candidate, perhaps Guatemala.
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Summary: Kissinger and Silveira discussed trade and energy issues, Cuba, Portugal, and the election of an OAS Secretary General.
Source: Ford Library, National Security Adviser, Presidential Country Files, Box 2, Brazil—State Department Telegrams from Secstate, Nodis. Secret; Immediate; Nodis. Drafted by Zimmermann, cleared by Ryan, approved by Rogers. On April 14, the preparatory conference for the oil producer-consumer conference stalemated over what issues should be emphasized. Some nations wanted to focus on energy-related issues, while others demanded that the conference address broader economic issues. Agreeing that the conference should center on energy-related issues, Kissinger and Silveira exchanged views on April 14 and 15. (Telegram 85460 to Brasília, April 15; National Archives, RG 59, Central Foreign Policy File, D750131–0405) In telegram 2884 from Brasília, April 16, the Embassy reported that Silveira did not think that the Kissinger-Silveira view would prevail. (Ibid., D750132–0672)
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