Statement by the President Concerning a Plan for the Development of Northeast Brazil.

NO AREA in this hemisphere is in greater or more urgent need of attention than Brazil's vast Northeast. Covering more than 600,000 square miles and containing almost 25 million people, Northeast Brazil is one of South America's most crowded and poverty-stricken regions. The average per capita income barely reaches $100, in 18 Northeastern cities infant mortality is between 25 and 35 percent, and the area as a whole suffers from overpopulation, recurrent drought, food shortages, and high illiteracy. To these problems is added a yearly population increase of 600,000.

This area with its poverty, hunger and consequent discontent is a crucible of social, economic and political problems--problems which have unmistakable implications for the future development of Brazil and the security of the entire hemisphere.

To study cooperative methods of dealing with these problems the United States invited Dr. Celso Furtado--Director of the Development Agency for Northeast Brazil (SUDENE)--to come to Washington and review projected plans for the development of the Northeast. Dr. Furtado has prepared-through the agency of SUDENE-a five year plan for the Northeast designed to reconstruct the economy of that area and bring hope for a better life to its people. The plan is the result of two years' study, and has the firm support of President Quadros and the Brazilian Congress.

The plan envisages a total cost of $900 million dollars over a five year period; $500 million to be supplied by the Brazilians; and $126 million by international institutions such as the Inter-American Bank or IDA. Of the remainder, the plan permits providing almost half through the supply of surplus foodstuffs. High officials of the United States Government--in meetings chaired by Milton Barall of the Department of State-have spent this week in preliminary discussions of the program with Dr. Furtado.

Certainly a plan of this magnitude, with its wealth of technical detail, will require a great deal of further study. And the United States intends to dispatch a group of economists and technicians to Brazil to participate with SUDENE in such studies. However, although the details of the plan and the magnitude of resources involved need further examination, the overall objectives of SUDENE appear to be substantially sound, realistic, and in harmony with those of the Alliance for Progress; which itself is an outgrowth of the Brazilian concept of Operation Pan-America.

Therefore, the United States is prepared to cooperate with SUDENE to help it realize the objectives embodied in this program. Together the United States and Brazil will work with international agencies and other Western nations in an effort to mobilize the external resources which may be necessary. The United States is prepared to cooperate with SUDENE, on a continuing basis, to help solve the problems of the Northeast and to bring economic and social progress to that hard-pressed region.

The Governments of Brazil and the United States have already cooperated in providing a great deal of assistance to Northeast Brazil just as we have cooperated in providing substantial assistance this year to the entire country. And the ICA, on request by the Brazilian Government, is prepared to immediately provide technicians for research and technical assistance in river valley development, soil utilization, water supply, basic education and other fields to which SUDENE is giving priority attention.

In the course of Dr. Furtado's visit we have concluded initial agreements for the supply--as part of the Food for Peace Program--of grain and lard as an emergency reserve for flood or drought. In addition, food will be used to aid the resettlement of emigrants from the Northeast area. Negotiations are also continuing for the donation of U.S. foodstuffs to be used as partial wages in connection with economic development projects.

The visit of Dr. Furtado has helped to increase our understanding of the problems of Northeast Brazil. The systematic study, planning and concern which the Government of Brazil has devoted to the area holds high promise for the betterment of the living conditions of its 25 million people. And the United States intends to play a continuing role in helping our sister Republic of Brazil meet this urgent challenge.