Memorandum of Conversation with Secretary of State Dean Acheson, Joao Neves da Fontoura, Edward G. Miller, Lieutenant General Charles Bolte, Ambassador of Brazil Mauricio Nabuco, General Paulo de Figueriredo, Joao Daudt de Oliveira, and Walder Lima Sarmanho

412515 NABIONAL ANCHIVES conf 6664 LOUROS SERVICE 92 April 5, 1951 Economic and Military Cooperation Between Brazil and the United States. João Neves da Fontoura - Minister of State for F .A. Brazil Mr. Acheson - S Mr. Miller - ARA Lt. General Charles L. Bolte- Chairman, IADB Ambassador Mauricio Nabuco - Brazilian Amb. to US General Paulo de Figueriredo, Brazilian Army XXXXXXXXX João Daudt de Oliveira, President of Commercial Assoc. Walder Lima Sarmanho, Minister Copies to: ARA OSA S AR After an exchange of greetings, the Brazilian Foreign Minister set forth the desire of Brazil for close political and economic coop- eration with the United States. In the case of Brazil, economic de- fense and the production of strategic materials depended upon the maintenance of an adéquate flow of materials from the United States, and on a continuation of economic development. Brazil desired at this time to conclude with the United States the necessary supply ar- rangements to meet these indispensable requirements. Secondly, Brazil needed the assistance of the Government of the United States in obtaining the necessary priorities for equipment in the amount of ten million dollars for new petroleum refineries. No external financing was required for this purpose. Thirdly, Brazil would like to obtain assurances that the "three hundred million dollar line of credit given Brazil by the International Bank" was exclusive of specific financing, such as manganese develop- ment, which the United States was arranging in its own special interest. Finally, the Brazilian armed forces were lacking in equipment and the military members of the Brazilian Delegation were anxious to dis- cuss this problem with appropriate United States officials. With reference to the recent operation under which Brazil and Argentina each obtained two cruisers from the United States, it was the view of the DECLASSIFIED E.O. 11652, Sec. 3(E) and 5(D) or (E) 12.14.77 Dept. of State letter, SBORUT By NLT-HC NARS PROJECT NLT 77-58