U.S. Says It Backs Bailouts for Brazil and Uruguay Only By RICHARD W. STEVENSON
WASHINGTON, Aug. 1 — Just days after suggesting that he would oppose new financial aid for battered South American economies, Treasury Secretary Paul H. O'Neill signaled today that the United States was now willing to back bailout plans for two of the hardest-hit nations, Brazil and Uruguay. But he pointedly left out a third, Argentina. ...
The American stance toward the region's problems has been complicated by bad feelings set off by comments made on Sunday by Mr. O'Neill. Asked on Fox News Sunday about aid to the region, Mr. O'Neill said he would not be bringing any offers of help with him on his trip.
He said aid would be forthcoming only after Latin American nations could assure that the aid "doesn't just go out of the country to Swiss bank accounts."
President Fernando Henrique Cardoso, enraged at the implication that his government was corrupt — something Mr. O'Neill's office said he never meant to imply — said he would not meet with Mr. O'Neill unless he retracted his statement, according to reports in the Brazilian news media. Brazil summoned the United States ambassador to lodge a protest.
The reaction from Brazil led the White House to offer conciliatory words on Tuesday, and Mr. O'Neill offered more today.