Vargas banned the AIB party in April 1938, as he did with the Communist Party, and started to
dissociate his government from the Fascist and Nazi European regimes seen in Europe. Vargas also took strong measures to reduce German influence in the communities in the Southern part of Brazil, where the Germans still kept their original language and traditions. The Nazi political activities and Nazi flags were outlawed, and the Portuguese language was be used in all occasions. These actions disappointed German immigrants because most of its members were from that area.5
In May 1938, as Ação Integralista Brasileira Party was being outlawed by Vargas, he was targeted for assassination by the AIB by undertaking an attack against the Presidential Palace while he was sleeping. President Vargas was strongly disappointed with Germany, because, for him, there was no doubt the Germans had taken part in and supported the plot.6 Therefore, after the attack, he improved and issued orders to overrule the AIB within Brazil.
Internationally, Brazil participated in the Conferences held in Buenos Aires in 1936, and in Lima in 1938, where the Pan-Americanism was emphasized and all American countries agreed to assist “sister” American republics against any invasion. The Declaration of Lima reinforced the United States’ position to combat the Axis’ influence in Latin America and opened the possibility for the Latin American countries to defend the western world against the danger represented by the Axis powers. At this point, Brazil had committed itself to support the United States in the case of a war.9