Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

344. Telegram From the Acting Secretary of State to the Embassy in Brazil¹

Washington, November 21, 1956—6:07 p.m.

419. Peixoto–Strauss meeting (Deptel 371)² held 21st. Peixoto did not ask for specific new areas cooperation but spoke at length re “now favorable” atmosphere U.S.-Brazilian cooperation. Said he did not know why power reactor instructions not yet received but if not received within month would go Brazil straighten things out.

Strauss assured Peixoto our desire cooperate fully establish sound atomic energy program with Brazil but indicated technical problems arising as result uncertain status existing agreements beginning to cause some difficulty. Peixoto said he had recommended prospecting be resumed. Also although GOB had approved Brazilian NSC recommendation no intention cancel sales contracts. He added new commission good; chairman his personal friend and other members three of whom recently in U.S. all good men and well disposed.

. . . . . . .

Department believes, your discretion, it might now be useful reinforce Strauss–Peixoto talk by taking advantage opening afforded FonMin statement (Embtel 495)³ to seek full discussion atomic energy situation with him along lines your talk with Muniz. Emphasis should be placed on desirability full cooperation in policy and organization field Brazil’s program to prevent possible monopoly orientation but problems existing contracts, which are of more importance Brazil than U.S., might be mentioned as symptomatic of present unsatisfactory situation. While status contracts should not be overemphasized it might be pointed out that their early clarification would not only serve as indication Brazilian intentions but would also solve certain technical problems re personnel and funds. … Action on this case becomes increasingly important as leasing arrangement for reactor fuel should be signed soon to avoid upsetting construction schedule.

Hoover

1. Source: Department of State, Central Files, 832.1901/11–1056. Secret. Drafted by Ernest V. Siracusa, Officer in Charge of Brazilian Affairs, and approved by Rubottom.
2. Telegram 371, November 9, transmitted to the Embassy a proposed agenda for the Peixoto–Strauss meeting, arranged at the latter’s request. (Ibid., 832.1901/11–956)
3. In telegram 495, November 16, Ambassador Briggs reported a recent conversation with Macedo Soares in which the Foreign Minister noted the Brazilian armed services’ concern about the international security situation in light of the Suez and Hungarian crises. Macedo Soares had suggested, accordingly, that it was a propitious time for the United States to move ahead and obtain solutions to its various problems with Brazil, including arrangements in the atomic energy field. (Ibid., 732.5–MSP/11–1656)