The relationship between Brazil and Argentina was historically known for its rivalry, which occasionally manifested in diplomat-military crisis. One crisis occurred in August 1937, when Brazil and United States negotiated the cession of destroyers to the Brazilian Navy. Since mid-1930s, Vargas government struggled to accomplish a naval renovation plan, to restructure the obsolete Brazilian fleet. The international scenario offered great opportunities to the Brazilian, as the polarization intensified the dispute to supply armaments and for the position of Brazil on the system of alliances. Washington, under the Good Neighbor Policy and alarmed with the growing Axis presence in Latin America, decided to negotiate with the Brazilians despite the isolationist • Belo Horizonte, ISSN 2317-773X, v.4 n.3, p.75 -97
76Congress resistance, offering six destroyers to Brazil. However, a strong criticism arouses against the agreement both in the American public opinion as well in the international community, especially from Argentina. Alarmed by the negative internal and external reactions, Washington gave up, for Brazilian dismay. Proceeding from the classical notions of naval diplomacy and balance of power theory, my goal is to understand the reasons and motivations, in view of domestic and foreign policy, of the main countries involved as well the international effects of the agreement.