Memorandum by Mr. William Tapley Bennett, Jr., of the Office of Middle American Affairs to the Deputy Assistant Secretary of State for Inter-American Affairs (Barber)


Mr. Miller, Ambassador Waynick,1 Mr. Mann and I lunched together on June 7. Ambassador Waynick took occasion to point out [Page 860] the tentative allocation of funds on Point IV operations. He explained that the proposed division of funds had been drawn up prior to his arrival in Washington and were based on the possibility of final approval by the Congress of an appropriation of $30,000,000 for the program. He mentioned the following allotments which will be used in whole or in part in Latin America: $5.5 million for “going IIAA programs”; $3.7 million for SCC programs and $2 million for Latin America from general Point IV funds. There are also contemplated United States contributions of $10 million to the United Nations and $750,000 to one million to the Organization of American States for their respective aid programs.

Ambassador Waynick indicated that he had been somewhat surprised at the amounts proposed for allocation to Latin America. He said that he is aware from personal experience that the other American republics for the most part have great aspirations with respect to Point IV and that they have tended to look at it as an aid program which would take into account their needs in somewhat the same way that ECA and other large United States programs have aided Europe. He said that he is convinced that there will be strong disillusionment in Latin American if no more Point IV money is spent there than is now proposed.

He continued that, speaking frankly, he has found a disposition on the part of some of the other geographic areas in the Department to use Point IV money for emergency programs to aid in thwarting the communist advance, as in southeast Asia. The Ambassador expressed the view that Point IV is “entirely too small a finger to put in that dike.” He conceives of Point IV rather as a long-term program with as much an educational aspect as anything else. He considers that it must be nurtured slowly and handled with great care if it is to fulfill its high purposes.

The Ambassador went on to say that, again speaking frankly, it has become apparent to him that many of the people planning Point IV operations are impressed primarily with the needs of the Middle and Far East as compared with those of Latin America. He said that the proposed fund allocations would be circulated in the near future to the geographic offices for study and comment, and he suggested that ARA have no hesitation in speaking out strongly concerning the needs of the area. There was discussion on this point, and Mr. Miller assured the Ambassador that ARA’s views would be made known without equivocation.

There was considerable discussion of the need for centralization of operations under a new and expanded aid program. Mr. Miller mentioned some of the current difficulties and duplication, both in Washington and in the field, which arise from having numerous agencies [Page 861] carrying on programs of technical assistance, each with district headquarters, field personnel and program goals. Mr. Miller mentioned his preference, with respect to the ARA area, of an expansion of the IIAA to an agency which would have representation on its Board of Directors from all interested agencies such as Agriculture, Treasury, SCC, and the like and which would provide one coordinated headquarters for all programs of technical assistance. There was general agreement that, provided the establishment of such an office could be sold to the other agencies, it would certainly save money and would eliminate much wasteful duplication. Ambassador Waynick indicated that he would give the matter his sympathetic consideration.

  1. Capus M. Waynick was Special Assistant to the Under Secretary of State, in charge of TCD (from May 17). He was later Acting Administrator of the Technical Cooperation Administration (TCA).