Foreign Relations of the United States, 1964–1968, Volume XXXII, Dominican Republic; Cuba; Haiti; Guyana

185. Memorandum From the Representative to the Organization of American States (Bunker) to President Johnson ¹

Washington, October 28, 1966.

SUBJECT

• Present Situation in the Dominican Republic

1. Together with my colleagues of the Ad Hoc Committee I called on President Balaguer October 25. The Committee wished to ascertain President Balaguerʼs views regarding the continuation in being of the Tenth Meeting of Foreign Ministers. I pointed out to the President that, if the 10th MFM were to continue in being, the Ad Hoc Committee could also continue in existence and should any situation arise requiring action by the OAS, the Committee would be able to respond immediately without the time consuming steps involved in convoking another Meeting and establishing new machinery. Dr. Balaguer replied that his preference very definitely was to have the 10th MFM and the Ad Hoc Committee continue in being. He expressed confidence that continuation of the Meeting would raise no public opinion problem within the country. I concur in Dr. Balaguerʼs views regarding the desirability of continuing the Tenth Meeting of Foreign Ministers.

2. I referred to Professor Boschʼs recent allegations of continued terrorism and his complaint that political activity was not possible, that the government was not paying attention to public opinion, and that PRD sponsored bills had not been approved by the Legislature. I added that his present more critical attitude, his decision to retire as head of the Party and his announced departure in early November for Spain contrasted with his avowed intention when I saw him in September² to cooperate with the government.

3. Regarding allegations of terrorism, Dr. Balaguer replied that Bosch had spoken only in generalities and he had asked him publicly to what specific actions he had reference. He remarked that Bosch seems to be tired and dispirited, apparently unhappy and irritated by the situation within the PRD, with the Party divided and various factions fighting each other. The President added that, although there are responsible men in the PRD, there does not appear to be any one person likely to replace Bosch able to weld the groups together and maintain Party unity.

4. President Balaguer referred to the desirability of completing arrangements as soon as possible for the training of the frogmen in the U.S., a commitment which we had made as early as last January. I informed him that I expected plans to be completed by the end of the present week and that arrangements could be made for their departure promptly. The President expressed the view that departure of the frogmen would remove the remaining source of possible serious friction. He expects no further problem in completing the reintegration of the remaining Constitutionalist forces.

5. The President expressed the view that although the state of the economy represents the biggest problem facing the government the situation has improved. Current expenses are being met out of income and salaries of all employees of the government and government owned enterprises are being paid on time. Special U.S. budget support assistance has not been needed since July. Referring to the Sugar Corporation, he mentioned that the $12 million loan under negotiation with private banks would cover the $6 million current deficit and provide funds for the coming crop. The main problems are to reduce production costs and provide employment for the nearly 5,000 employees whom it was necessary to lay off. He assured me that plans for the use of the $40 million U.S. assistance loan are proceeding well with nearly $9 million committed and $17 million more about to be committed.

6. The situation in the Dominican Republic presents some favorable developments, others less so. Among the less favorable developments are:

a) Some psychological letdown from the general feeling of enthusiasm and optimism which prevailed at the inauguration of the new government.

b) The apprehension that I had earlier expressed that Dr. Balaguer might try to go too far too fast in his austerity program I think may have been borne out. Labor opposition is beginning to develop, and there seems to be a growing feeling of pessimism among the part of the business community most affected by the austerity program, particularly importers. There is a situation for potential trouble between the contending stevedore unions, a problem which had presumably been settled by the Provisional Government. It remains to be seen whether the Presidentʼs handling of the situation will be successful.

c) At least a partial breakdown of cooperation between the two major Parties and their leaders Balaguer and Bosch.

d) The lack of any real Party organization in either of the two major Parties. The PRD is split between the more conservative older elements, numerically the greater, and some of the more radical younger groups. It remains to be seen what effect Boschʼs resignation, if he carries through, and the holding of the PRD convention this weekend will have on the Party fortunes and organization. There has also been a deterioration in the organization of the Reformista Party of Dr. Balaguer due in part to his refusal to sanction funds for the adequate functioning of the Party organization.

e) The fact that Balaguer is by character and nature an old-fashioned man with an innate distrust of technicians and experts. The result is that he is not making use of some of the competent personnel who were assembled by his predecessor Dr. Garcia Godoy. Given the thinness of competent talent in the Dominican Republic, this can have adverse effects on its economic, political and social progress.

Favorable factors are:

a) Contrary to rumors which sometimes circulate in the Dominican Republic and rather more frequently here, there is no real evidence of any plotting.

b) Balaguerʼs relations with the Armed Forces continue to be excellent. The changes which he has made, i.e., the dispersal of the CEFA artillery brigade formerly commanded by General Wessin y Wessin and the replacement of General Folch Perez as Chief of Staff of the Air Force, have gone off smoothly and without incident. The President remarked that General Wessin y Wessin will not return and has now few followers. He added that while General Imbert is never calm he is now isolated and is not permitted to visit military installations.

c) Evidence points strongly to the fact that the great majority of the Dominican people are determined to see the Administration through its full four years.

d) While the Reformista Party has a preponderant control of the Legislature, it is not true that the democratic process is not functioning. The opposition has been able to secure amendments to certain laws and Balaguer has wisely deferred action on the proposed law to suspend certain political activities. The law is now under study by a mixed commission of five members each from the two major Parties.

7. I believe that on balance the constructive factors making for stability of the Balaguer Administration outweigh the negative ones. It was to be expected that there would be some psychological letdown from the atmosphere of anticipation and enthusiasm engendered by the installation of the newly elected Constitutional government. In view of the serious deterioration of the economy aggravated by the revolution and the continuous series of crises faced by the Provisional Government, the remedial measures undertaken by the new Administration were bound to cause some dissatisfaction. Certain other problems are those being encountered by all of the underdeveloped nations. While one has to take these into account, I am cautiously optimistic about the situation in the Dominican Republic.

8. The Embassy is functioning well and under the able guidance of Ambassador Crimmins is keeping constantly alert to the situation there.

Ellsworth Bunker

1. Source: Johnson Library, National Security File, Country File, Dominican Republic, Vol. XVII. Confidential. Transmitted under a November 9 covering memorandum from Rostow who wrote: “Ellsworth Bunker went to the Dominican Republic the week before last with his two OAS colleagues (Brazilian Ambassador Ilmar Penna Marinho and El Salvador Ambassador Ramon de Clairmont Duenas) to talk to Balaguer. On Bunkerʼs return he did the attached report for you, describing his findings. He thinks that on balance the favorable new developments of the Balaguer administration outweigh the unfavorable ones and the prospects for stability are still good. Other recent reports have been less sanguine; but Ellsworthʼs judgment has been pretty good over the months.”
2. See Document 183.