Joint Statement following Discussions With President Goulart of Brazil.

THE MEETINGS of the President of the United States of Brazil and the President of the United States of America during the past two days have been marked by a spirit of frankness, cordiality, and mutual understanding. During their talks the two Presidents examined relations between their two countries with respect to topics of world-wide and hemispheric, as well as bilateral, concern. On the conclusion of these extremely fruitful talks, they agreed to publish the following joint communique:

They reaffirm that the traditional friendship between Brazil and the United States has grown through the years as a consequence of the faithfulness of the Brazilian and the American peoples to common ideals of representative democracy and social progress, to mutual respect between the two nations, and to their determination that both Governments work together in the cause of peace and freedom.

The two Presidents declared that political democracy, national independence and self-determination, and the liberty of the individual are the political principles which shape the national policies of Brazil and the United States. Both countries are joined in a worldwide effort to bring about the economic progress and social justice which are the only secure foundations for human freedom.

The Presidents discussed the participation of their countries in the Geneva disarmament talks and agreed to continue to work to reduce world tensions through negotiations insuring progressive disarmament under effective international control. Resources freed as a result of such disarmament should be used for peaceful purposes which will benefit peoples everywhere.

The two Presidents reaffirmed the dedication of their countries to the Inter-American system and to the values of human dignity, liberty, and progress on which that system is based. They expressed their intention to strengthen the Inter-American machinery for regional cooperation, and to work together to protect this hemisphere against all forms of aggression. They also expressed their concern that political crises in American nations be resolved through peaceful adherence to constitutional government, the rule of law, and consent of the people expressed through the democratic processes.

The Presidents reaffirmed their adherence to the principles of the Charter of Punta del Este and their intention to carry forward the commitments which they assumed under that Charter. They agreed on the need for rapid execution of the steps necessary to make the Alliance for Progress effective--national programming to concentrate resources on high priority objectives of economic and social progress; institutional reforms, including reform of the agrarian structure, tax reform, and other changes required to assure a broad distribution of the fruits of development among all sectors of the community; and international financial and technical assistance to accelerate the accomplishment of national development programs.

The Presidents stressed the important role which trade unions operating under democratic principles should play in advancing the goals of the Alliance for Progress.

President Goulart stated the intention of the Government of Brazil to strengthen the machinery for national programming, selection of priorities and preparation of projects. President Kennedy indicated the readiness of the United States Government to assign representatives to work closely with such Brazilian agencies to minimize delays in project selection and the provision of external support.

The Presidents noted with satisfaction the effective cooperation of the two Governments in working out an agreement for large-scale United States support of the Brazilian Government's program for development of the Northeast of Brazil. They expressed the hope that this program would provide a fruitful response at an early date to the aspirations of the hard-pressed people of that area for a better life.

The President of Brazil stated the intention of his Government to maintain conditions of security which will permit private capital to perform its vital role in Brazilian economic development. The President of Brazil stated that in arrangements with the companies for the transfer of public utility enterprises to Brazilian ownership the principle of fair compensation with reinvestment in other sectors important to Brazilian economic development would be maintained. President Kennedy expressed great interest in this approach.

The two Presidents discussed the efforts which the Government of Brazil has undertaken for a program of financial' recovery, aiming at holding down the cost of living and assuring a rapid rate of economic growth and social development in a context of a balanced economy. The Government of Brazil has already taken significant action under this program. The Presidents agreed that these efforts, effectively carried through, will mark an important forward step under the Alliance for Progress. The Presidents welcomed the understanding recently reached between the Brazilian finance Minister and the U.S. Secretary of the Treasury, under which the United States is providing support for the program which has been presented by the Government of Brazil.

In order to promote the expansion of Latin American markets and to encourage the most efficient use of available resources, the two Presidents indicated their support for the Latin American free trade area and their intention to speed its development and strengthening.

The two Presidents discussed the major aspects of the problem of raw materials and primary products. They decided to give full support to the completion of a world-wide agreement on coffee, which is now in process of negotiation. They will jointly support representation to the European economic community looking toward the elimination of excessive excise taxes which limit the sales of such products and customs discrimination which reduces the ready access to European markets for the basic products of Latin American origin.

In conclusion, the two Presidents agreed that their exchange of views had confirmed the close relations between their two governments and nations. President Kennedy reaffirmed his country's commitment to assist the Government of Brazil in its efforts to achieve its people's aspirations for economic progress and social justice. The two Presidents restated their conviction that the destiny of the hemisphere lay in the collaboration of nations united in faith in individual liberty, free institutions and human dignity.