Lot 60D665, Box 15280
Memorandum of Conversation, by the Ambassador in Brazil (Pawley1)
| Participants: | Secretary Marshall |
| Ambassador Joao Neves da Fontoura | |
| Ambassador William D. Pawley | |
| Major Vernon Walters2 |
Ambassador Neves da Fontoura stated that he was happy to inform Secretary Marshall that by order of the President of Brazil, His Excellency, General Eurico Gaspar Dutra, and by instructions from Foreign Minister Raul Fernandes, and by his own feelings, the Brazilian Delegation would follow closely the United States Delegation and that every effort would be made to have the points of view of both delegations coincide.
Economic:
Ambassador Neves da Fontoura then stated that there were several points he would like to discuss with Secretary Marshall: first, that he had listened with great interest to Secretary Marshall’s speech and that he fully understood the burden on the United States’ economy by the ERP and fully appreciated the tremendous load being borne by the American people in all corners of the world and that Brazil had no desire to further increase this burden.
He stated that Brazil, although part of Latin America, is like the United States in that it has a different language and culture; nevertheless, the Brazilian Delegation would be called upon frequently to go along with other Latin American Delegations. He felt that in this manner they could be a valuable contact between the Latin American Delegations and the United States Delegation, assisting in smoothing out difficulties that might arise and generally contributing to the success of the Conference.
The Ambassador stated that he understood thoroughly that portion of the Secretary’s speech which referred to the desirability of providing a satisfactory climate for private capital which would assist in the development of the economy of the Latin American nations.
Petroleum:
The Ambassador next discussed petroleum. He stated that he had played an important part in the drafting of the Constitution of Brazil, particularly with reference to that part which deals with the development of petroleum and other such resources. He went on to say that a new law had been presented by the President to the Brazilian Congress.3 He stated that the President and other members of the Cabinet had submitted to the Congress some modifications to this proposed oil legislation, in the hope that when the law was approved by Congress it would be more attractive to American capital.
Secretary Marshall explained the importance of having petroleum in case of an emergency, and stated that this fortunately coincides with Brazil’s interest. Secretary Marshall explained to the Ambassador some of the danger of having to depend upon petroleum from the [Page 28] Middle East, and hoped that adequate measures would be taken to further develop the petroleum industry in this hemisphere.
Secretary Marshall stated that the United States would not be able, in the case of another emergency, to render the assistance with reference to petroleum that had been rendered by the United States in the recent war.
Ambassador Neves da Fontoura replied that it was the desire of the President of Brazil and the Brazilian Government to do everything within their power to facilitate the development of this resource with the assistance of foreign capital, within the scope of the Brazilian Constitution.
Ambassador Pawley pointed out that the Brazilian Constitution provided all of the necessary facilities for foreign capital to assist in the development of petroleum, but that the petroleum project now under consideration by the Brazilian Congress would in no way meet the requirements of American private capital.
Communism:
The next subject brought up by Ambassador Neves da Fontoura was communism. He stated that the Brazilian Government had found a certain reluctance on the part of the Argentine Government to mention communism by name. He stated that the Brazilian Delegation was prepared to support whatever resolution was favored by the United States Government.
Pan American Union:
Ambassador Neves da Fontoura stated that he would like to know the United States Delegation’s position with regard to the Argentine Government’s desire to remove the Inter-American Defense Board from the Pan-American Union and set it up as a separate entity.
Secretary Marshall then asked Ambassador Neves da Fontoura if he knew what prompted the Argentine Government to take this position. The Ambassador replied that he felt that the Argentine Delegation had taken this position because they were usually “against everything” and because they desired to make of the Pan-American Union merely an administrative body, taking from it all political powers. He further stated that the Argentines did not wish to support a Pan-American Union that might become a “super-State”. The Ambassador stated that he felt that the Pan-American Union should be strengthened and that the Inter-American Defense Board should be included in the Organic Pact.
Ambassador Neves da Fontoura concluded by reiterating the Brazilian Delegation’s solidarity with the United States Delegation, and he said that he and his colleagues would keep in close contact with the United States Delegation throughout the Conference.