330. Paper Prepared by the Special Assistant in the Bureau of Inter-American Affairs (King)1

Brazil

Although Poland and Czechoslovakia are the only Soviet bloc countries maintaining diplomatic missions in Brazil, there have been indications of Soviet interest in reestablishing diplomatic relations, and the existing missions have increased sharply their activities in the country, especially their efforts further to develop trading relationships. Many Brazilians, even though ideologically opposed to communism, sincerely feel that an expansion of trade with the Soviet bloc is essential if the Brazilian economy is to be strengthened. The local Communist Party, the largest, best organized and wealthiest in the hemisphere, is capitalizing on these feelings by a vigorous campaign of propaganda, pointing out the alleged benefits of closer relationships with the Soviet Union and the “people’s democracies”.

Brazil’s trade with the Soviet bloc in 1955 showed a decided increase over the 1954 total of $42,000,000 (which was only 1.5 percent of total Brazilian trade). The widespread discussion in recent months of the desirability of trade with the Iron Curtain, the activities of satellite missions and trade groups, current US surplus disposal programs and local communist propaganda which coincides with sentiments which are widespread among businessmen, all make it virtually inevitable that there will be some additional increase in Brazil’s trade with the Soviet bloc.

Travel of Brazilians to Iron Curtain countries does not appear to be impeded by security forces. About 150 Brazilians visited the bloc during 1955, the majority of them being youth and labor leaders. A parliamentary delegation is currently touring the Iron Curtain. Nevertheless, the Administration of President Kubitschek has given indications of an awareness of the internal communist threat and has in recent months moved firmly against subversive activities. In a series of raids over the weekend of March 17 and 18, some 20 communist leaders were arrested and over a ton of communist propaganda confiscated. It was of interest that this action was accomplished under a new chief of the Rio Political Police who had been considered “neutral.” He apparently was prodded from above to take action. The Administration in recent weeks has apparently been successful in resisting all-out efforts by the communists to [Page 702] push through a sweeping amnesty bill under which they would have benefitted, rather than the more restricted bill providing forgiveness for those involved in political plots only since last November.

. . . . . . .

The Embassy as a whole has taken every occasion in contacts with key Brazilian officials to exert an influence against any tendency to turn to the Soviet bloc as a means of solving Brazil’s internal problems.

  1. Source: Department of State, ARA Files: Lot 58 D 749. Secret.