Office of the Historian

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

Washington, July 17, 1956—7:50 p.m.

66. Brazilian delegates here state Kubitschek intends upon return from Panama to announce PL 480 agreement and presumably any financing agreements as having been negotiated between him and President Eisenhower at Panama. Although sympathetic his objectives Department convinced such action would lead to serious difficulties with other Presidents attending meeting. We have gone to elaborate lengths to avoid even the appearance that decisions will be reached at this meeting on any substantive problems. You accordingly requested bring this to attention appropriate official with urgent request that announcements of any PL 480 or financial agreements state that they resulted from conferences in Washington between Brazil and U.S. representatives, and that such agreements not be attributed to conferences between Presidents at Panama. Moreover, the two Governments should agree in advance on timing of any announcement by either.2

Dulles
  1. Source: Department of State, Central Files, 411.3241/7–1756. Confidential; Priority. Drafted and approved by Holland; cleared with S/S and by phone with Barnes and Kalijarvi.↩

  2. On July 18, Dulles had a conversation with Secretary of the Treasury Humphrey during which they discussed, among other matters, the proposed loan agreements with Brazil. The memorandum of conversation, drafted by Dulles, reads:

    “Secretary Humphrey questioned the advisability of the Export-Import Bank coming to an agreement with Brazil for a further loan immediately before or during the Panama meeting. He also thought that any agreement should deal with the problem of funding or otherwise providing for their early maturities.

    “I said I agreed that it would be a mistake to couple the matter with the Panama meeting. I hoped, however, that if the arrangement carried over beyond the meeting, it would not carry over for long. Secretary Humphrey thought that it did not need to carry over for long. At one point he mentioned ‘a month or two’. I said that would be too long and he said he saw no reason why it had to be that long.” (Eisenhower Library, Dulles Papers, General Memoranda of Conversation)

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