Memorandum from Secretary of State Dean Acheson to President Harry S. Truman

CONFIDENTIAL DEPARTMENT OF STATE WASHINGTON May 1, 1950 MEMORANDUM FOR THE PRESIDENT Subject: Effect in Brazil of Argentine Developments and Significance to Brazilian-American Relations of Possible Election of Vargas to Presidency In summary, an improvement of relations between the United States and Argentina would probably be approved by most respon- sible Brazilian Government authorities. There would be an under - current of resentment on the part of some authorities, including the Foreign Minister, and strong criticism from an important seg- ment of the press. Vargas' election as President of Brazil should not lead to a serious deterioration of relations between the United States and Brazil. I. Estimate of Effect in Brazil of Improvement of Relations Between the United States and Argentina. Possible effects in Brazil have been weighed in considering improvement of our relations with Argentina. We have made clear to the Brazilians that we are prepared to assist them financially in appropriate ways. Brazil has been unable to plan projects for assistance, and will be unsettled generally until after the October elections. Brazil and Argentina historically have vied with one another for the leadership in South America. Due to its active participa- tion in the war, Brazil is convinced that it is entitled to special consideration. Hence any action which we may take to improve relations with Argentina will be criticized. Responsible Brazilians and at least a part of the press will understand and approve action looking toward closer economic relations between the United States and Argentina, as it would benefit closer hemispheric political relationships and in the long DECLASSIFIED run B. O. 11652, Sec. 3(E) and S(D) or (f) 5-3-77 Degt. of State letter, PROTECT NLT 77.57 HC MARS.Date 5-27.77 CENTIDENTIAL