Memorandum of Conversation with Secretary of State Dean Acheson, Edward G. Miller, Ivan White, and Randolph Kidder

OBORET 358 279 DEPARTMENT OF STATE Restricted Memorandum of Conversation DATE: October 19, 1950 SUBJECT: Financial Aid for Development Projects in Brazil PARTICIPANTS: Secretary of State Acheson Assistant Secretary of State Miller ARA/E - Mr. Ivan White ARA :OSA - Mr. Randolph Kidder COPIES TO: Secretary Acheson Under Secretary Webb Assistant Secretary Miller Mr. Barnes Assistant Secretary Throp Mr. White Mr. Stinebower Mr. Kidder Embassy, Rio. 1--1493 Mr. Miller referred to that part of Ambassador Nabuco's conversation on October 9 with President Truman and me which relates to loans to Brazil. Mr. Miller explained that he wished to discuss related matters with me and asked if I could enlarge on what I had written in my Memorandum of Conversation. I stated that, in addition to what appears in the Memorandum of Conversation, the Ambassador had done little except make a general complaint regarding the treatment allegedly received by Brazil and the difficulties incurred in attempt- ing to get a loan for Minas Gerais. Mr. Miller outlined the difficulties, including those relating to the question of Bank jurisdiction, which have been experienced with the application for the Minas loan. The jurisdictional problem arising from the confusion as to the exact spheres of operation of the Export-Import Bank and the International Bank is one which must be cleared up and on which Mr. Miller asked my assistance. He informed me that last night he talked at some length with Mr. Black, President of the International Bank, and that Mr. Black had expressed his willingness to make avail able to the Brazilian Government credits up to $250 million to be used for development over a period of five years, or for a shorter period should it be possible to make use of the funds in such shorter period. He was prepared, under certain conditions, to make a public announcement to this effect. Mr. Miller outlined the current status of plans for a Joint Economic Development Commission in Brazil (under authority of Section DECLASSIFIED E.C. 12065 410 STATE LTR. 6-12-79 BYARTHA NARS, Date F.15.79 SECRET