296. Telegram From the Secretary of State to the Embassy in Brazil1

569. For Ambassador from Under Secretary. Convey my personal regards Minister Gudin with following message “Mr. Humphrey and I have full sympathy for your extremely difficult position in solving Brazil’s financial problems both internal and external. For this reason we would welcome the closest possible direct contact with you during the critical months ahead. To achieve this daily [Page 629] communication between us we proposed the arrangement suggested to you by Ambassador Kemper. A representative of your personal choice available for continuing discussions with Eximbank and other Departments and agencies might best effect this close liaison. Because of the special nature of this problem we would hope such a temporary arrangement would not affect our normal diplomatic channels. I would be grateful if you will inform Ambassador Kemper of your opinion of this suggestion for immediate transmission to me. With kindest personal regards, Herbert Hoover, Jr.”2

Dulles
  1. Source: Department of State, Central Files, 832.10/1–1255. Confidential. Drafted by Cottrell; cleared with Atwood, Holland, and Overby; and approved by Under Secretary Hoover.
  2. Gudin’s reply to Hoover’s message was transmitted to the Department by Ambassador Kemper in telegram 676 from Rio de Janeiro, January 19:

    “I am very grateful to Mr. Humphrey and to yourself for the expression of your desire to cooperate with my administration. This is especially gratifying to me due to the fact that in spite of my efforts since I took charge I have been entirely unsuccessful in obtaining the cooperation of your Treasury with the sole exception of a one years credit from the Federal Reserve Bank with 100 percent gold collateral. I am instructing if you agree Mr. Octavio Paranagua special financial assistant to the Brazilian Embassy to establish the direct contact you suggest. Kindest regards Eugenio Gudin”. (Ibid., 832.10/1–1955)