(Policy Approved by the President, September 3,
1954)
(Period Covered: April 30–December 1, 1954)
1. A communist-dominated government in Guatemala was overthrown and a
government favorable to the U.S. came into power. The U.S. is supporting
this new government with relatively substantial military and economic
assistance.
2. The U.S. demonstrated increased support and use of the OAS and is increasing its financial support
of that organization. Despite several incidents of friction in Central
and South America, the U.S. has been instrumental in averting any breach
of the peace.
3. Criticism of U.S. economic policy which reached a climax prior to the
Rio Economic Conference has somewhat subsided. Criticism at the
conclusion of the conference was less severe than might have been
anticipated due in part to the sympathetic but firm attitude
demonstrated by our Delegation and the assurances given by the
Delegation of our determination to help Latin America solve its economic
problems on a sound basis. Announcement of our support of an
International Finance Corporation;2 liberalization of,
and announcement of, loans under our development loan policy, and
decisions not to impose additional duties on lead and zinc were major
factors in reducing Latin American criticism.
4. The U.S. responded promptly and effectively to urgent appeals from
Haiti and Honduras to meet major flood disasters in those countries, and
subsequently extended substantial economic aid.
5. A decision to pay transportation, per diem and course costs for
military trainees from MDAP countries
in Latin America resulted in a substantial increase in the number of
such trainees scheduled for attendance at Service schools in the U.S.
and in the Canal Zone.
6. New Military Assistance Agreements with Honduras and Nicaragua are
being implemented and the military grant program for Colombia was
increased by one battalion; but, in general, the U.S. has been unable to
accede to requests for increased grant military assistance.
7. The information program during this period was reoriented so as to
deliver more impact in the priority countries such as Brazil, Chile,
Bolivia and Guatemala. The President’s “Atoms for Peace” proposal,3 the Rio Economic Conference,
pertinent recommendations of the Milton Eisenhower
report, and activities exposing Communism received continuing emphasis
in both planning and output.
8. The Working Group sees no need for any change at this time in the
policy enunciated in NSC 5432/1.
However, the Working Group has not had the opportunity to assess the
impact of the Rio Economic Conference on policy.
9. The coming six months will in all probability be marked by a
continuation of present problems in the political and economic fields.
In the political field, the principal problem will be to find the means
of associating the United States with the aspirations of the peoples of
Latin America, thus counteracting communist propaganda which
consistently and often effectively portrays the United States as the
defender of “so-called exploiters” in opposition to the interests of the
common people. To win the support of the peoples as well as the
governments for our major policy objectives is a task of enormous and
long-range proportions.
10. In the economic field, the United States will continue to be
concerned with maintaining economic stability and accelerating economic
development in Latin America. The United States will also have to face
the desire of Latin Americans to have the U.S. assume a larger share of
the financial burden involved in solving their economic problems than
the U.S. is willing to bear. To meet this situation, the United States
should continue its efforts to encourage and strengthen the will and
ability of Latin America to take necessary self-help actions and at the
[Page 91]
same time, as required by
U.S. interest, should furnish assistance needed to support and
accelerate economic development in Latin America, and by this and other
appropriate means demonstrate U.S. desire to aid Latin American efforts
to achieve economic progress.
11. Specifically, the following emerging problems and possible future
actions require attention:
12. The Department of Commerce and the Treasury Department fully
participated in the deliberations of the Working Group, including the
preparation of this report.
Annex A
Annex “A”—Detailed Development of Major
Actions
Statement of Actions by Paragraphs of NSC 5432/1
Para. 5a. Greater Utilization of Organization of
American States
The Organization of American States was used as a means of achieving
our objectives in the case of communist intervention in Guatemala.
After the arrival from Poland on May 15 in Guatemala of a
substantial shipment of arms, the United States initiated
consultations with all Latin American Governments, except Guatemala.
Following these consultations, the Council of the Organization of
American States voted almost unanimously (Ecuador voted against;
Uruguay abstained) to
[Page 93]
convoke a Meeting of Ministers of Foreign Affairs. The Council of
the OAS postponed the meeting sine die because the revolution in Guatemala
overthrew the communist-controlled Government.
The revolution in Guatemala caused the communist-controlled Arbenz Government to appeal to the
United Nations Security Council and to the Inter-American Peace
Committee of the OAS alleging
aggression on the part of Honduras and Nicaragua, supported by other
foreign nations. The United States took the position that the
Organization of American States was ready, willing and competent to
respond to the appeal. The Security Council voted (Soviet Union
against), in effect, to leave the matter to the OAS. The Inter-American Peace Committee
prepared to investigate, but before the Committee arrived in
Guatemala, the new government of that country indicated that the
controversy requiring the investigation had ceased to exist.
Para. 5b. Increasing Financial Support of
Inter-American Organizations
Funds for increased contributions to inter-American organizations of
approximately $250,000 have been included in the Fiscal Year 1956
budget. Larger increases which had been proposed were reduced when
it became apparent that the Latin American governments could not
match in Fiscal Year 1956 increased contributions from the United
States.
The United States has supported increased utilization of the OAS for technical cooperation and
obtained funds to increase our contribution to the OAS Technical Cooperation Program from
$1 million to $1.5 million.
Para. 5c. Prior Consultation with Latin American
Governments
The United States Delegation to the sessions of the UN General Assembly continues to consult
with Latin American delegates on issues before the United Nations.
Argentina and Uruguay have urged consultation concerning disposal of
U.S. agricultural surpluses because of the effect such disposal has
on their major export commodities. The U.S. has agreed to
consultations but not to the extent these exporting countries
desire.
Consultation with Latin American Governments on the Guatemala
situation is discussed under Paragraph 5a.
Para. 5d. Consideration of Latin American Problems
at Highest Government Levels
A Sub-Cabinet Committee was created for the purpose of studying our
economic relations with Latin America and recommending the position
which the U.S. should take with respect to the agenda and proposals
likely to be considered at the Rio Economic Conference. The
Assistant Secretary of State for Inter-American Affairs7
visited the
[Page 94]
heads of all
governments in South America and Mexico8 for the purpose of explaining and gaining
acceptance for the policies which had been developed by this
Committee. While the U.S. Delegation found it necessary to abstain
on a number of the resolutions adopted by the Rio Economic
Conference, abstention was explained in terms which were
sympathetically received and understood by other delegations. The
composition of the United States Delegation to the Rio Economic
Conference included more ranking government officials than have
attended previous conferences of this nature. It was headed by the
Secretary of the Treasury9 and included the Under Secretary of
State10 and a number of other officials of sub-cabinet rank.
Our relations with the Latin American countries continued to be
generally favorable although there was increasing criticism of
United States economic policy which reached a climax just prior to
the Rio Economic Conference. Developments in relations with
individual countries worthy of comment included the following:
- (1)
- Relations with Argentina continued favorable during the
period, but our Ambassador11 reports that it is becoming
increasingly necessary for the United States to reciprocate
Argentine cooperation by meeting some of Argentina’s
economic desires or offering tangible assistance, e.g., a
military assistance program. The Export–Import Bank has sent
a survey mission to Argentina12 to look into
projects proposed by Argentina and has approved in principal
a credit for a steel mill blast furnace. But other actions
by the U.S. have so far been adverse to Argentina’s desires,
i.e., a quota has been imposed on the importation of oats
and a quota on tung oil and tung nuts was avoided only by
the voluntary agreement of Argentina and Paraguay to limit
shipments to the U.S.
- (2)
- During the period November 8–17, we reviewed with a Cuban
Delegation our economic relations with Cuba. We were unable
to accede to certain of Cuba’s requests because they would
require Congressional action, e.g., an increase in Cuba’s
sugar quota and tariff reductions on Cuban products. We made
no commitments on other requests to purchase Cuban minerals
for the stockpile and include Cuba in the offshore
procurement program. Further discussions are to be held on
the rice agreement and a possible double taxation treaty.
Cuba agreed to seek early solutions to several pending U.S.
problems pending in Cuba, e.g., GATT violations, debts owed by Cuba to private
U.S. citizens. The Cubans were afforded a sympathetic
hearing, however, and the discussions ended in an atmosphere
of cordiality.
- (3)
- The President of El Salvador13 received through his
Ambassador14 in Washington a personal
letter from the President on November
[Page 95]
1015 commending him for
his role in bringing a peaceful settlement among Guatemalan
leaders after the collapse of the communist-controlled
Guatemalan Government. This exchange of letters between the
two Presidents made a highly favorable impression in El
Salvador.
- (4)
- There was a marked improvement in our relations with
Guatemala as a result of the change in Government in that
country. Arrangements were made to permit Guatemala to
purchase military equipment in the United States; credit
terms are being granted on individual cases. A grant
military assistance program is being considered. An economic
program of over $6 million was offered which includes funds
to implement an agreement looking toward the completion of
the Inter-American Highway in Guatemala.
- (5)
- From September 1953 to August 1954, representatives of the
United States and Panama were engaged in a full-scale review
of problems in United States–Panama relations. Based on
these negotiations, a new treaty with Panama has been
drafted16 and is to be signed in January.17 In the
course of these negotiations, representatives of Panama have
been received by both the President and the Secretary of
State.
- (6)
- Our relations with Venezuela had deteriorated because of
our support of Costa Rica and our action in granting
Betancourt,
ex-President of Venezuela, a visa to the U.S. The Assistant
Secretary of State for inter-American Affairs reviewed our
relations with Venezuela’s President18 in October and
particularly our attitude with respect to Costa Rica. At
that time the President of Venezuela was advised of the
plans of the Department of the Army to award him the Legion
of Merit.19 The discussions and the
award had the desired effect because U.S. relations with
Venezuela promptly took a turn for the better.
A Delegation of United States officials—including the Assistant
Secretary of State for Inter-American Affairs, the United States
Representative to the Inter-American Economic and Social
Council,20
Senator Bourke Hickenlooper, representing the
Senate Committee on Foreign Relations, and Representative
Clifford B. Mclntire, representing the
House Committee on Agriculture, participated in the inauguration of
the Cochabamba–Santa Cruz Highway in Bolivia which was financed in
part by the Export–Import Bank and built by a United States
firm.
The Joint Mexico–United States Defense Commission visited Continental
Air Defense Command at Colorado Springs for extensive briefing and
demonstrations on common air defense problems and procedures.
[Page 96]
The Secretary of Defense21 has accepted an invitation of the
President of Colombia22
to visit that country in January of 1955.
The President of Haiti23
has accepted an official invitation to visit the U.S. in January,
1955.
Para. 5e. Refraining from Unilateral Action
As noted under 5a. above, the United States
sought a solution of the Guatemalan problem through the Organization
of American States. The United States has also resisted efforts of
local factions to seek United States approval of proposed solutions
of the indecisive Presidential elections in Honduras24 in which none of the three presidential candidates
received the required majority to be elected.
Para. 5f. Support of U.S. as Criterion for
Aid
The outstanding example of taking account of the willingness and
ability of a Latin American country to cooperate with the U.S. in
determining the extent of U.S. assistance is Guatemala. The extent
of assistance to the new Guatemalan Government is outlined under
5d. above and is in sharp contrast to the
extremely limited assistance given the previous government. This
criterion continues to be applied in Bolivia where it has met with a
good degree of success.
Para. 5h. Assistance to Countries Resisting
Pressure from Neighbors
The United States has assisted Costa Rica in resisting pressures from
the neighboring country of Nicaragua, as well as from Venezuela and
the Dominican Republic. Because of outspoken denunciation of
Venezuela, the Dominican Republic and Nicaragua, by the President of
Costa Rica,25 the latter has gained the animosity of
the Presidents of those countries,26 which has
resulted in encouragement by them to dissident elements in Costa
Rica to remove him from office. The United States continues to urge
a peaceful solution to the dispute and encourage its submission to
the OAS if necessary.
Para. 6. Increased Action Against Communist
Penetration
The United States has continued to provide information on communist
activities to the Latin American governments with a view to
encouraging action to control such activity. Information supplied on
a communist-sponsored Latin American Women’s Conference held in the
latter part of August in Rio de Janeiro was instrumental in exposing
the Conference as communist-inspired and discouraging attendance
with the result that it was a failure.
[Page 97]
Similar action was taken with respect to a Youth Festival that was to
be held in Guatemala and communist meetings scheduled in Santiago,
Chile, and Vienna. Information on communist meetings and conferences
is being made available to Latin American governments on a
continuing basis.
As a result of discussions with the Latin American governments on the
control of communist travel, Cuba has adopted new passport and visa
regulations and Colombia is tightening up on its regulations. Chile
has also taken a decision to prevent travel of its nationals to
communist-sponsored meetings. The Department of Justice is
considering what action the United States can take to carry out its
obligation to exchange information on United States communists using
tourist cards for international travel. Although these actions
constitute some measure of success, communists and communist
sympathizers continue to travel within and outside the Hemisphere
with relative freedom.
There is an increasing awareness by the Latin American governments of
the threat that communism poses to their security and the security
of the Free World. Argentina and Chile have stepped up their efforts
to control communist activity. Bolivia continues to take an
increasingly strong stand against communism; and in Brazil, although
communism has made gains, and the Communist Party claims to have
held its first Party Congress since 1929, indications are that the
new government will deal more strongly with communism than the
previous Vargas Government.
In Mexico, where the government has tended to side with the
communist-controlled Arbenz
Government in Guatemala, there is evidence of a new awareness of the
dangers of communism.
Para. 7. Colonialism
No action was taken by the United States, during the period, on this
course of action. The British Government conferred with British
Honduras officials on increased self-government, decided to continue
its control over affairs of British Guiana, and proceeded with plans
to federate its other territories in the Caribbean. The Dutch
Government also proceeded with federation plans for its
territories.
Para. 8a. Development of Responsible Organized
Labor Movements
The U.S. increased the number of State Department labor officers in
Latin America from 5 full-time and 4 part-time employees on May 1st
to 6 full-time and 6 part-time employees on December 1st. The number
of FOA labor personnel assigned to
the region remained at 6 throughout the period. The U.S. also urged
the Government of Guatemala to establish conditions for the
development of free labor unions; and expanded programs for training
of Latin American labor leaders in Puerto Rico and the U.S.
[Page 98]
Para. 8b. Control of Shipment of Strategic
Materials27
The Soviet bloc has shown interest in obtaining from Latin American
countries certain strategic list goods and other important raw
materials, e.g., copper, sulfur, lead, antimony and mica. Despite
efforts by the Bloc to obtain strategic materials, the foreign trade
of the Latin American countries in strategic items has continued to
be almost entirely confined to the free world. During the period of
this report, all countries of Latin America (except Argentina to
which the Battle Act sanctions do not apply
because Argentina is receiving no aid) reiterated earlier assurances
of cooperation in the control of strategic material exports to the
Soviet bloc. Chile and Peru are participating in a limited
application of the IC/DV system as of
November 30, 1954, and informal arrangements with copper-producing
firms in Mexico remain in effect. No approach has been made to other
countries for the adoption of IC/DV
systems. Latin American cooperation in the Transit Authorization
Certificate scheme is being considered.
In regard to trade in general between the Latin American Republics
and the Soviet bloc, the Soviet Union and its satellites have been
playing on Latin American concern over the future stability of
markets in the U.S. and criticism of U.S. economic policies. Since
the end of the Korean war, the Soviet Union and its satellites have
been carrying out a so-called trade offensive in Latin America for
both economic and propaganda purposes. The total value of Latin
American-Soviet bloc trade is quantitatively small, amounting to
about one-half of one percent of all Latin American trade in 1953.
Nevertheless, the Soviet bloc has been making significant efforts to
augment the importance of this trade in selected countries,
especially in Argentina and Uruguay, which have exportable surpluses
of agricultural products. Increased Soviet bloc interest is shown
most clearly by the USSR and most prominently in the Argentina–USSR
trade agreement of 1953 which was renewed in August, 1954.
Czechoslovakia and Poland are the principal trading partners for the
Soviet bloc although other satellites have become increasingly
active.
The communists attempt to maximize the propaganda value of their
trade efforts to show how the communist world tries to promote trade
and assist in economic development as compared with alleged U.S.
efforts to restrict trade. These trade activities also provide a
cover for subversive activities and an excuse for requesting
establishment or strengthening of diplomatic relations. No Latin
American country has re-established diplomatic relations with bloc
countries because of these efforts. While the Latin American
countries occasionally use the threat of possible increased trade
with the Soviet bloc as a bargaining point,
[Page 99]
e.g., the rumor that Chile, during the copper
negotiations, would sell to the Soviet bloc, Latin American
countries have concentrated their main efforts on increasing trade
with the Free World and urging, particularly in connection with the
Rio Economic Conference, more liberal United States trade practices
and policies.
Para. 9a. Long-Term Trading Policies
Latin America has been apprehensive regarding the future stability of
their markets in the U.S. The U.S. Delegation to the Rio Economic
Conference assured the delegates that the U.S. is determined to
maintain a strong, healthy economy in the U.S., insuring by this
means a growing volume of trade. The U.S. was also able to
demonstrate interest in avoiding serious injury to their trade by
the following actions:
- (1)
- The President’s decision not to accept a recommendation
for tariff increases on lead and zinc28 which would have adversely affected
Bolivia, Peru and Mexico, and to assist the domestic
industry instead by increasing purchases for
stockpile;
- (2)
- The President’s decision not to take unilateral action
with respect to imposition of a quota on tung oil but
instead to negotiate with the countries affected (Argentina
and Paraguay) for a voluntary cutback in exports to this
market;
- (3)
- The refusal of the Executive Departments to support the
domestic sugar industry’s request for reopening the Sugar
Act29 with a view to
increasing the domestic quotas and proportionately reducing
those of foreign suppliers;
- (4)
- U.S. support for resolutions30 at the Rio Economic Conference calling for a
study of the problems affecting coffee and bananas and
assurances that the U.S. is prepared to discuss individual
commodity problems at any time, with the countries
affected.
- (5)
- U.S. announcement at the Rio Economic Conference that it
expected to follow a policy of gradual selective reduction
of trade barriers.
Para. 9b. Financing Economic Development
Projects
The policy stated in this sub-paragraph was announced at the Rio
Economic Conference. An Export–Import Bank loan of $100 million for
development of the Toquepala Mine in Peru prior to the Conference
gave substance to the policy.
Loans by the Export–Import Bank for development purposes were as
follows:
[Page 100]
Export–Import Bank Loan Authorizations for Latin
America—May 1–December 1, 1954
| Date |
Borrower |
Terms and Purpose |
Thousands of Dollars |
| 5/25/54 |
Brazil
Services Aereos Cruzeiro do Sul Ltda. (Banco do
Brazil) |
5 years—Aircraft & spare parts (Gen. Dynamics
Corp.) |
$1,945 |
| 11/26/54 |
Fongra Productos Quimicos, SA |
7½ & years—Equipment and Materials |
1,500 |
| 6/24/54 |
Ecuador
Republic of Ecuador (Increase) |
15 years—Water Supply System |
3,650 |
| 9/2/54 |
Paraguay
Republic of Paraguay |
To be determined—Water Supply System |
7,200 |
| 10/28/54 |
Peru
South Peru Copper Co. |
20 years Copper Ore development |
100,000 |
|
|
Total
|
$114,295 |
Twelve additional loans totaling nearly $6 million were extended.
Export–Import Bank disbursements on all credits outstanding to Latin
America including development and other credits, were $36 million
for the period January 1 through June 30, 1954. Repayments on all
out-standing credits during the same period amounted to $26
million.
During the period under consideration the International Bank
authorized $77 million in new loans to Latin American countries as
follows:
International Bank Loan Authorizations for Latin
America—May 1–December 1, 1954
| Date |
Borrower |
Terms and Purpose |
Thousands of Dollars |
| Aug 24 |
Mexican Govt |
19 years: railway equipment |
61,000 |
| Oct 12 |
El Salvador Govt |
16 years: highway construction |
11,100 |
| Nov 12 |
Peru Govt Bank |
11 years: agricultural equipment |
5,000 |
|
|
Total
|
77,100 |
On November 11, the Chairman of the NAC31 announced an Administration decision to
ask Congressional approval for U.S. participation in a proposed
International Finance Corporation with a contemplated capital of
$100 million, about one-third to be supplied by the U.S., which
would be organized as an affiliate of the International Bank. The
time for submitting the proposal to Congress will depend on
discussions with the IBRD and its
members. The purpose of the Corporation would be to stimulate
private investment in under-developed countries throughout
[Page 101]
the world by making loans
without guarantee of member governments as is now required in loans
by the International Bank.
On November 12, the Export–Import Bank announced the first
authorization under a new program for exporter “lines of
credits,”32
designed to eliminate the need for an exporter to arrange a new loan
to cover each individual sale. Export–Import Bank is discussing
participation with the Chase National Bank in a new multi-million
dollar export financing corporation.
Effective October 11, 1954, the lending authority of the
Export–Import Bank was increased from $4.5 billion to $5 billion. As
of November 30, 1954, the uncommitted lending authority of the Bank
was $1,713 million.
Para. 9c. Development Assistance Loans
Since the period of time in which to evaluate the effects of courses
of action 9a and 9b
has not passed, no steps have been taken during the reporting period
to implement the alternative course of action possible under this
section.
Para. 9d. Strengthening Technical Cooperation
Program
The Technical Cooperation Program has been strengthened and
diversified as is evident from the table below. Appropriations for
the program have been steadily increased, and these funds are being
spent on more diversified activities. Appropriations for fiscal year
1952 were $17.9 million; 1953, $20.4 million; 1954, $22.3 million;
and 1955, $26.0 million. During the period July 1–November 1 the
number of technicians in the field increased from 589 to 614.
Greater consideration is being given as long-term considerations are
consistent with a system of annual appropriations. An indication of
this is the increased number of three-year contracts with U.S.
universities to assist in developing Latin American universities: In
FY 1953, $700,000 was obligated
for this purpose; in 1954, $4,300,000; in 1955, $1,700,000; and in
1956, it is planned to obligate $6,200,000.
Responsible Latin American officials publicly support the program,
and the Latin American governments have increased their requests for
assistance and contributions to the program. Contributions to
program funds in FY 1953 were
$38,200,000; in 1954, $55,200,000, and in 1955, $61,100,000.
Training in the United States of Latin Americans has been steadily
increased and diversified. In Fiscal Year 1953, 560 Latin Americans
received training, in Fiscal Year 1954, 1,108; and in Fiscal Year
1955, 1,456. Training grants for Fiscal Year 1955 will include
grants as follows: health, 144; agriculture, 254; industry, 664;
education, 210; public administration, 155; and community
development, 38.
[Page 102]
Funds Obligated for Technical Cooperation FY 1952–FY 1955
(Thousands of dollars)
| Activity |
FY 1952 |
FY 1953 |
FY 1954 |
FY 1995 (estimated) |
| Agriculture and Natural Resources |
6,718 |
6,230 |
11,224 |
8,571 |
|
|
(40.4%) |
(38.1%) |
(47.7%) |
(35.9%) |
| Health and Sanitation |
4,763 |
4,467 |
4,926 |
4,988 |
|
|
(28.6%) |
(27.3%) |
(21.0%) |
(20.9%) |
| Education |
2,755 |
1,861 |
2,544 |
3,820 |
|
|
(16.5%) |
(11.4%) |
(11.0%) |
(16.0%) |
| Transportation, Power |
368 |
517 |
577 |
1,251 |
|
|
(2.2%) |
(3.2%) |
(2.4%) |
(5.2%) |
| Labor |
—*
|
—*
|
483 |
819 |
|
|
|
|
(2.0% |
(3.4%) |
| Industry, Mining |
652 |
1,856 |
1,175 |
2,108 |
|
|
(4.0%) |
(11.4%) |
(5.0%) |
(8.8%) |
| Public Administration |
1,293 |
1,346 |
1,124 |
1,560 |
|
|
(7.8%) |
(8.2%) |
(4.8%) |
(6.5%) |
| Community Development |
90 |
64 |
649 |
636 |
|
|
(.5%) |
(.4%) |
(2.7%) |
(2.7%) |
| Trade, Invest., Other |
— |
— |
804 |
142 |
|
|
|
|
(3.4%) |
(.6%) |
|
Total
|
16,641 |
16,343 |
23,511 |
23,900†
|
Para. 9e. Grant Economic Assistance
Congressional authorization was obtained for funds to be expended
over the next five years to cover the United States’ obligation
under cooperative agreements for construction of the Inter-American
Highway in Central America. Under this authorization, an
appropriation of $5,750,000 was obtained for Fiscal Year 1955, and
nearly all of this sum has been allocated for specific project
agreements with Panama, Costa Rica, Nicaragua and Guatemala.
Cooperation with Guatemala was resumed on the Selegua Gap section
which will eventually permit travel to San Jose, Costa Rica. In
addition to previous authorizations, $4 million was authorized, and
$1 million appropriated, for completion of the Rama Road in
Nicaragua.
The emergency economic grant program in Bolivia was continued with
the ultimate objective of increasing agricultural production and
otherwise diversifying the country’s economy to decrease its
dependence on tin exports. At the same time the program provides
food, primarily from United States surplus stocks, which is required
because Bolivia lacks the foreign exchange necessary to continue
normal food
[Page 103]
imports.
Emergency economic aid was extended to Guatemala after the
revolution and to Haiti and Honduras after the recent hurricanes.
These programs involved a total of $7,632,000 of Mutual Security
funds and $3,430,000 in surplus agricultural products under PL
480.33 An additional $700,000 of Mutual Security
funds is being spent for Christmas parcels delivered in Latin
America by CARE and other voluntary agencies.
Para. 9f. Improvement of Investment Climate
Efforts to encourage the Latin American countries in these directions
are continuing. For example, (1) Haiti was dissuaded from
establishing an oil refinery with monopoly privileges; (2) in Chile
a plan of economic “rectification” has been presented to the
Congress in response to constant prodding from the U.S.; (3) in
Argentina, progress has been made toward extension of certain of the
provisions for repatriation of capital and dividends on new
investments to cover old investments; (4) in Panama the United Fruit
Company took the initiative in negotiating with the Panamanian
Government a 32-year contract which provides increased benefits to
the Government; (5) Peru, in November, signed a lend-lease
agreement34 covering the balance of $2.8 million
owed to the U.S., thus acknowledging a contractual obligation of
long standing and eliminating an obstacle to receiving credit from
the U.S.
Activities of U.S. agencies, designed to advance the accomplishment
of this objective, include: (1) reporting on foreign private
investment in Latin America; (2) providing information on investment
opportunities including the issuance of investment handbooks; and
(3) planning for a major private investment conference in New
Orleans next February to be attended by U.S. and Latin American
firms and institutions.
Negotiations with Honduras on a double taxation treaty were virtually
completed although the political situation there has held up its
signature.35
Preliminary discussions on such a treaty were undertaken with
Nicaragua.
Para. 9g. Regional Economic Actions and
Groupings
Latin American proposals for the creation of regional economic
actions and groupings were given detailed consideration by the
Sub-Cabinet Committee in formulating the U.S. position for the Rio
Economic Conference:
[Page 104]
- (1)
- One proposal related to establishment of an Inter-American
financial institution which the U.S. believed would
duplicate existing facilities. The U.S. did not feel it
could join the proposed institution but offered to assist
through consultation and furnishing technical
information.
- (2)
- With respect to an international entity to promote
Inter-American cooperation in industrial and technological
productivity, the U.S. declined to participate because it
considered a new institute unnecessary. The U.S. offered to
provide technical advice and consultation.
- (3)
- Proposals were made for consultations among the central
banks of the American republics to determine the feasibility
of financial arrangements to deal with temporary
difficulties in balance of payments and also of revising the
quotas of Latin American countries in the International
Monetary Fund. The U.S. abstained, partly because it was not
prepared to increase its quota to the Fund but indicated
that the studies which might result from the resolution
would have our good will and technical cooperation.
- (4)
- The Rio Economic Conference (including U.S. approval)
recommended a study of the possibility of intensifying
regional trade through special customs arrangements in
harmony with existing bilateral and multilateral agreements
including future revisions thereof.
Para. 9h. Use of Agricultural Trade Development
and Assistance to Obtain Non-Deteriorating Assets
No agreements have been made with any Latin American country under
the Agricultural Trade Development and Assistance Act of 1954.
However, authorization has been given to proceed with negotiations
with Brazil, Chile and Peru for programs amounting to approximately
$30, $8 and $6 million, respectively, and it is anticipated that
repayment will be made, in part, in strategic and critical
materials.
Para. 9i. Diversification of Latin American
Economies
Considerable diversification has been achieved in the agricultural
field. Programs for industrial diversification are being prepared,
especially as regards small industry, for countries where it is
appropriate.
In fields requiring large capital investments, principal reliance for
increased diversification falls upon private investors. The
following represent new industries in the countries referred to and
are typical of such activities in Latin America: (1) in the
Dominican Republic new dry-dock facilities are being erected by a
Florida company. The National Gypsum Company and the U.S. Gypsum
Company are erecting a large plant. The South Puerto Rico Sugar
Company is erecting a large plant to make furfural from sugar cane
bagasse;36 (2) in Haiti, the
Reynolds Metals Company has opened a road to its bauxite deposits in
preparation for mining operations in the near future;37 (3) in Peru, American
[Page 105]
Smelting and Refining will soon begin the
development of its copper properties in the south, which will assist
materially in the development of the surrounding area; (4) a new
paper box plant is being constructed in Mexico.
Para. 10. Encouragement of Fiscal, Budgetary and
Other Measures
The U.S. has continued bilateral discussions with Brazil and Chile on
their budgetary and fiscal problems. Chile has sought advice from
the International Monetary Fund on reforming its exchange control
system and, as a preliminary step, altered the peso dollar rate from
110 to 1 to 200 to 1 on November 10.
The International Bank for Reconstruction and Development and the
International Monetary Fund continue to advise various Latin
American countries, including Costa Rica, Honduras, Nicaragua, El
Salvador, Panama and Peru, on budget, fiscal and other measures
essential to economic progress. Guatemalan requests of the U.S. for
such assistance are being considered.
Treasury officials have consulted with financial representatives from
Brazil, Mexico and Peru concerning their internal and foreign
payments situations, including visiting each of these countries for
discussions. The Secretary of the Treasury, at the Annual Meetings
of the Fund and International Bank and at the Rio Economic
Conference, also urged the adoption of policies which would
contribute to economic stability.
The United States is considering a Mexican request to convert the
existing Stabilization Agreement into a direct, long-term loan of
$75 million for the purpose of supporting the peso at its present
rate.
The Technical Cooperation Program has increased training in the
general field of public administration, thereby encouraging
improvements in fiscal and budgetary operations.
During this period, the only drawings by Latin American countries on
the International Monetary Fund have been $22.5 million drawn by
Mexico shortly after a standby arrangement for $50 million was made
with the Fund on April 16, 1954. A possible drawing by Chile is now
being discussed. At the end of September 1954 (latest data
available), cumulative net drawings on the Fund by Latin American
countries were as follows:
|
Country
|
Millions of Dollars
|
| Bolivia |
2.5 |
| Brazil |
65.5 |
| Chile |
8.8 |
| Mexico |
22.5 |
| Paraguay |
.9 |
|
100.2 |
[Page 106]
The standby agreement with Mexico, originally authorized for a six
months’ period, was extended on October 16 for an additional 12
months. There is also in effect a one-year standby agreement with
Peru for $12.5 million, established February 17, 1954.
Para. 11. Information Program and Related
Activities
The U.S. Information Agency total dollar support for its programs in
Latin America over the period 1954–56 is as follows:
| 1954 |
$5,197,000 |
| 1955 |
5,253,000 |
| 1956 |
7,490,000 (est.) |
The 1955 program, while showing only a minor increase in funds over
1954, has during the first six months of the fiscal year been
reoriented so as to deliver more impact in the priority countries
such as Brazil, Chile, Bolivia and Guatemala. The President’s “Atoms
for Peace” proposal, the Rio Economic Conference, and the pertinent
recommendations of the Milton Eisenhower report
on Latin America, have all received continuing emphasis in Agency
planning and output. Specific plans for a cooperative information
project with Puerto Rico were set in motion.
The FY 1955 program is concentrated on
three basic tasks: (a) expounding the free
enterprise system and inter-American economic interdependence; (b) exposing the threat of Communism and its
influence in the area; and (c) demonstrating
the positive values of democracy as exemplified by American life and
culture. Among the specific projects which have been put in motion
during the past six months to support these three themes are the
following:
- (1)
-
Economic Interdependence. A definable
Latin American Economic Information Project was established
in July, involving both field and media production of
materials. Production has been undertaken on six pamphlets
in Spanish and Portuguese dealing with the role of private
investment in the development of the Americas, with
provision for 200,000 copies of each for distribution in
Latin America. Production has commenced on six economic
posters paralleling the subject matter of these pamphlets
and will be produced in quantities permitting widespread
distribution. Writer-photographer teams are now completing
their assignments throughout Latin America of collecting
material on which USIS
field output will be based in support of exploitable aspects
of FOA activities.
Production of a series of 14 half-hour dramatic programs is
being completed with the current delivery of the first two
scripts. Production of two films entitled “New Horizons” and
“Latin American Economic Highlights for 1954” is about 50%
completed. An economic bookshelf has been selected,
demonstration sets sent to the field for presentation, and
selected titles will be translated and published under
contracts now being negotiated in Mexico. One illustrated
book on the U.S. geography and growth, produced by IPS, has
been translated
[Page 107]
into Spanish and Portuguese and will be distributed in
volume. A second illustrated book on the U.S. economy has
been contracted for and preliminary draft text prepared. Two
new films on hemisphere economic interdependence are about
50% completed; seven short films relating to development of
underdeveloped areas, made by the Puerto Rican government,
are being purchased for distribution to the field; a series
of films on FOA activities
in Brazil, Chile, Bolivia, Peru and Ecuador is about 40%
completed; a film on FOA in
Haiti has been completed and is ready for the field; a film
on a visit to the U.S. by directors of Brazilian
agricultural schools to the U.S. has been completed; a film
on establishment of labor unions in Honduras has been
completed. At the Rio Economic Conference, intensive news
coverage was provided at the Conference by a five-man team
from the Agency, assisted by USIS Rio; tapes of interviews, photos, newsreel
footage and special film footage, and press features were
prepared on the spot and sent to the Agency as well as
forwarded direct to other posts in the area for fast
coverage. Seven of thirteen monthly newsreels produced
locally by USIS Brazil have
been released for theatrical distribution in that country;
contracts are being negotiated in Mexico for the translation
and publication of books especially selected to meet
objectives under the theme of economic
interdependency.
- (2)
-
Exposing Communism. Production of six
anti-Communist posters and six new anti-Communist pamphlets
is under way. USIS Mexico
produced a basically anti-Communist cartoon book for Central
American posts to the number of 90,000 copies, and kept this
area supplied with political cartoons by Latin American
artists. Two anti-Communist cartoon strips are produced and
appear in from 300 to 350 Latin American newspapers. Scripts
for a series of 26 anti-Communist dramatic radio shows were
furnished Cuba. Ten similar scripts were furnished
Guatemala. The “Fall of the Titan” appeared in a recorded
four-part series. A 14 part packaged dramatic anti-Communist
show and a complete 13 part show were also sent to the field
for broadcasts. The PAO in
Panama recorded a series of 18 interviews in Spanish with a
Polish ex-slave laborer and also made arrangements for the
Caribbean Forces Network to record a similar series in
English. Over 800 books on anti-Communism were recently sent
to Latin America. Four anti-Communist books were translated
into Spanish and six into Portuguese. One anti-Communist
film on Guatemala was produced and another was acquired and
circulated; six from other areas were distributed.
- (3)
-
Positive Values of Democracy. The
Binational Center program has been strengthened by
reorganizing the grantee personnel system, basing salary
scales and allowances on those of the Foreign Service Staff,
in order to give more security to employees and enable the
Agency to retain and recruit outstanding center personnel.
Approximately ten major exhibits on various phases of
American life were shipped to the field as well as a number
of smaller special requests. At least 96,000 books and
publications were sent to the field for Center and
presentation use (including economic and anti-Communist).
Five of the “Our Times” film series were furnished. An
historical film “Coast to Coast” is being processed for
distribution. “Report to Youth” is nearing completion. Nine
books on positive themes were translated into Spanish and
six into Portuguese. From 75 to 100 radio “Special Events”
were
[Page 108]
furnished the
field, including interviews, special programs and musical
transcriptions or special musical events.
- (4)
-
Other projects. In support of the
President’s “Atoms for Peace” proposal, USIA has conducted an intense
effort, utilizing its press, radio, motion picture and book
programs. Of special significance is the exhibit entitled
“Atoms for the Benefit of Mankind” which has been showing in
Sao Paulo since August in participation with the 400th
anniversary celebration of the city. By December the total
attendance at this exhibit had reached 300,000, including
visitors from throughout the world. A color film on this
exhibit has been completed and is being readied for film
distribution. Also, a panel exhibit entitled “Atoms for
Peace” has been sent to each post in Latin America.
Special “short term” assistance has been given to USIS Chile to support the U.S.
position in relation to the critical economic situation existing in
that country. Similar support was given to USIS Brazil before and during the recent elections,
including the production and use of a study of the ties existing
between the Brazilian Communists and Soviet Russia.
The Wireless File has been converted to a Spanish language news
service and other steps have been taken to expedite its local
distribution to newspapers and radio stations.
An agreement was reached with the government of Puerto Rico providing
for the cooperation of USIA in
distributing films, pamphlets and other materials support U.S.
objectives produced under the Puerto Rican Information program. Such
materials are already being used overseas by USIA and are particularly effective in
Latin America.
The Agency cooperated with a task force during the Guatemalan crisis
in selecting documentary material, through the cooperation of the
new anti-communist government, which was used in the output of the
Agency. At the time of, and subsequent to the Guatemalan Revolution,
the Agency sent guidances, books, pamphlets, press and radio
commentaries and stories to the field to enable field personnel to
understand and then publicize the extent of Moscow ties to the
Arbenz regime and
elsewhere in Latin America.
As a result of provision written into the Exchange of Persons program
appropriation by the Congress, an increase in the Latin American
program was required. The total allocation to Latin America was
increased to $1,818,534 (FY 1955)
from $1,027,714 (FY 1954). Allocation
under this appropriation for the American Schools in Latin American
areas went to $175,000 (FY 1955) from
$128,250 (FY 1954). Particular
emphasis is being placed on leader awards and grants in educational
and informational fields.
Para. 12. Overt and Covert Action Against
Communist and other Anti-U.S. Activities
Overt activities are described under paragraphs 6 and 11 above.
[Page 109]
Para. 13. Encourage acceptance of concept that
each Latin American Government is responsible for maximum
contribution to (1) internal security, (2) self-defense, and (3)
the allied defense effort
All progress reported on all military courses of action constitutes
progress with respect to this specific course of action.
Colombia has continued to maintain one frigate in support of the
United Nations’ defense effort in the Far East.
No progress has been made with respect to the U.S. desire for
resumption of military staff talks with Venezuela.
Para. 14. Provision of military assistance
consistent with agreed defense plans
The Department of State and Defense are exploring the possibility of
extending grant military assistance to Guatemala. To this end a
survey of the capabilities of Guatemala to absorb, utilize and
maintain U.S. military equipment that might be offered under the
provisions of Section 105, Public Law 665,38 was conducted. The
results of the survey are being studied by the Department of
Defense.
Bilateral Military Assistance Agreements were signed with Nicaragua
and Honduras in April and May respectively. Each country has
received U.S. equipment for one infantry battalion.
Negotiations for a bilateral Military Assistance Agreement with Haiti
will begin in January.
Following the decision of the Colombian Government to withdraw its
infantry battalion from Korea, it was decided to permit the
battalion to retain its equipment provided the Colombian Government
would agree to maintain the battalion as a unit under the MDAP program. The Colombian Government
agreed, and the bilateral military plan39 has been amended
accordingly. Because the unit retained its equipment, it is a
militarily effective unit immediately able to perform its
mission.
MDA programs are continuing in
Brazil, Chile, Colombia, Cuba, Dominican Republic, Ecuador, Peru,
and Uruguay.
Army MDA programs have been initiated
in Honduras and Nicaragua. A naval MDA program was commenced in Uruguay.
In summary, the combined force goals for which the U.S. has furnished
military equipment through MDAP as
of 1 December 1954 are:
| Army |
–1 Regimental Combat Team |
|
–8 Anti-aircraft Battalions |
|
–3 Infantry Battalions |
|
–1 Recon. Sq. (Mecz) |
| Navy |
–19 Warships |
|
–44 Other Vessels |
|
–1 Composite Recon. Squadron |
[Page 110]
| Air Force |
—20 Combat Squadrons |
|
—1 Transport Squadron |
The value of military grant aid shipments to Latin America during the
period 1 May 1954–30 September 1954 was $15.6 millions.
Value of grant aid obligated since the program began, by country, are
as follows: (as of 30 September 1954)
|
Country
|
In Millions of Dollars
|
| Brazil |
$78.0*
|
| Chile |
10.5 |
| Colombia |
7.5 |
| Cuba |
1.2 |
| Dominican Republic |
.1 |
| Ecuador |
4.8 |
| Honduras |
.4 |
| Nicaragua |
.4 |
| Peru |
7.0 |
| Uruguay |
.5 |
|
Total
|
$110.4 |
The Department of Defense is studying requests for increased support
of Brazilian and Cuban Forces.
Para. 15. Assumption by the U.S. of responsibility
for military operations and acceptance of U.S. military control
by other nations
Recognition of U.S. responsibility by Latin American Governments is
realized upon consummation of bilateral military assistance
agreements, and in the approval by Latin American countries of the
IADB General Military Plan for
Defense of the American Continent. To date all countries except
Mexico, Venezuela, and Guatemala have approved this Plan.
The United States and Netherlands military negotiators reached an
agreement on 11 November40 whereby the United States would have sole
responsibility for protecting the sea communications in the
Caribbean, and the Netherlands Government would have responsibility
for the local defense of its territory in that area.
[Page 111]
Para. 16. Reciprocal Use of Bases Established with
U.S. Aid
The Department of Defense has forwarded to the Department of State,
for negotiation with Brazil, a new base rights agreement41 which would guarantee
continued use of existing facilities and acquire a guided missile
observation station and a communication relay facility.
Para. 18. Protection of Sources and Processing
Facilities (Strategic Materials)
No progress to report.
Para. 19. Impact of Military Effort on Economic
Stability
All U.S. agencies continue to consider the economic conditions
existing in those countries seeking grant and reimbursable
assistance. However, the Latin appetite for military equipment
remains an obstacle to effective U.S. efforts to keep purchases of
military equipment within their economic capacity. U.S. denial of
military equipment in consonance with this course of action, along
with other reasons, has often resulted in acquisition from sources
other than U.S. to the distinct detriment of U.S. standardization
objectives as set forth in para. 20e.
Examples:
- (1)
- Substantial purchases by Ecuador including jets from Great
Britain.
- (2)
- Colombia’s contract with Sweden for two ships.
- (3)
- Chile’s barter with Great Britain—copper for jets.
Para. 20a. Continued Planning within Multilateral
and Bilateral Military Agencies
Bolivia, El Salvador, Nicaragua, and Paraguay approved the IADB general military plan. Guatemala
announced intent to do so.
U.S. intelligence on Soviet capabilities was provided the IADB for planning purposes.
A new mapping and charting agreement between the United States and
Mexico is under consideration by JMUSDC.
Brazil and the U.S. are considering the formation of a Combined Board
on Defense, Brazil–United States (CBD–BUS).
Para. 20b. Military Training Missions
A new Army Mission Agreement was signed with El Salvador on September
23.42 The Army Mission
Agreement with Colombia was extended indefinitely43 or
until such time as it is superseded by an Agreement
[Page 112]
being negotiated. Negotiations are
still proceeding with Bolivia, Ecuador, Guatemala, Paraguay and
Peru44 for the extension of
existing agreements or signing of new ones.
The Navy Mission Agreements with Brazil,45 Colombia, and Ecuador46 were extended
indefinitely but a new agreement is being negotiated with Colombia
which, when signed, will supersede the existing agreement.
The Air Force Agreement with Colombia was recently extended
indefinitely but negotiations are continuing on a new agreement
which, when signed, will supersede the existing agreement.
Negotiations are continuing on new agreements or extension of
existing agreements with Bolivia,47 Ecuador, Guatemala and
Paraguay.
Bolivia, Chile, Colombia, Honduras, Nicaragua and Venezuela requested
the assignment of additional personnel to Army Missions. Manpower
limitations have, to date, prevented fulfillment of all
requests.
An additional officer has been assigned to the U.S. Naval Advisory
Group in Argentina.
Colombia has requested augmentation of the U.S. Naval Mission to
include Marine Corps personnel with a view to development of a
Colombian Marine Corps.
The U.S. Navy is endeavoring to fulfill an Ecuadoran request for
additional mission personnel.
Para. 20c. Military Training in U.S. Service
Schools and Training Centers
U.S. policy with respect to training under the grant aid program was
broadened to permit payment of transportation, per diem and course
costs for all Latin American trainees.
[Page 113]
The Army provided training in the U.S. for 136 Latin Americans during
FY 1954. The quota for FY 1955 has been increased 75%.
Additionally, 714 Latin Americans received training in the U.S. Army
Caribbean School located in the Canal Zone, during FY 1954. The quota for FY 1955 has been increased 30%.
The U.S. Navy allotted quotas for 505 Latin American students to
attend Naval Schools in the U.S. during FY 1955.
The USAF provided specialized
training in the U.S. for 173 Latin American students during the
period of this report. Additionally, 500 Latin American students
received training in the USAF
school at Albrook AFB, Canal Zone.
Six Latin American students are enrolled in the U.S. Military
Academy, and eleven are attending the U.S. Naval Academy. A quota of
20 is authorized at each Academy.
Spaces for Latin American students are authorized by law at the Air
Force Academy and applications for admission will be accepted the
first year after a full four-year student body is present.
U.S. Ambassadors in Latin America have been requested to advise their
host governments concerning the availability of quotas at the
Military and Naval Academies.
Para. 20d. Foster closer relations between Latin American
and U.S. military personnel
During the period of this report, the military departments were hosts
to the following Latin American military dignitaries who accepted
official invitations to visit the U.S:
- (1)
-
Army
- Ecuador—Minister of Defense48
- (2)
-
Navy
- Argentina—Secretary of the Navy49
- Mexico—Secretary of the Navy50
- Venezuela—Chief of Naval Operations
- (3)
-
Air Force
- Chile—Chief of Staff, Air Force
- Peru—Air Minister
- Venezuela—Chief of Staff, Air Force
The USAF was host for a three-week
tour of the United States of 90 Argentine Air Force officers and
cadets.
[Page 114]
U.S. military forces in cooperation with the Red Cross participated
in disaster relief operations in Costa Rica, Guatemala, and Haiti,
and on two occasions each in Panama and Honduras.
The Department of the Army presented, or approved for presentation,
ten U.S. military decorations to members of Latin American armed
forces in recognition of services rendered to inter-American
military collaboration as follows: Brazil, 2; Chile, 1; Colombia, 3;
Ecuador, 1; Haiti, 1; Venezuela, 2.
The Commanding General, U.S. Army, Caribbean,51 representing the U.S. and the UN Command, with a thirty one-man honor
guard, participated in the official homecoming ceremonies of the
Colombian Battalion from Korea; presented two U.S. military
decorations to officers of the battalion; and awarded the
Presidential Unit Citation to the battalion for combat actions while
serving with the United Nations Command in Korea.
In October the Vice Chief of Staff, U.S. Army,52 accompanied by the Senior U.S. Army
Delegate to the Inter-American Defense Board, visited Argentina,
Brazil, Colombia, Peru and Venezuela. They were received by highest
government officials in all countries visited.
The Department of the Army sponsored an Inter-American Defense Board
visit to Army installations. Troop demonstrations were observed at
Fort Jackson, South Carolina, and Fort Bragg, North Carolina.
Para. 20e. Standardization—Facilitating Purchase
of U.S. Equipment
The Mutual Security Act of 1954 permits the sale of military
equipment on credit, but made no provision for financing such
credit. This problem has been temporarily solved by financing such
sales with Defense Department funds. The Air Force, in the case of a
sale to Peru, and the Army, in the case of a sale to Guatemala,
financed the credit from its own funds. In addition to a permanent
solution to the financing problem, criteria for granting credit are
required. While no particular problem exists with respect to Peru
and Venezuela, whose credit standings are good, such countries as
Chile, Brazil, Ecuador, etc., which have very unsatisfactory
economic situations, pose a real problem.
The Department of Defense has been unable to accede to requests from
Latin American countries for the purchase of naval vessels because
of the unavailability of the ships that they require. However, in
view of the historically close collaboration between the U.S. and
Brazil and the significance of contributions desired from Brazil in
the way of base facilities (see para. 17 above) the Department of
Defense is considering the loan of an escort carrier to Brazil but
will not be prepared to supplement such loan with aircraft for
carrier employment.
[Page 115]
As of 30 April, Army matériel valued at approximately $16.4 million
had been delivered to Latin America under the reimbursable
provisions of MDAP. As of 30
September an additional $3.1 million worth had been shipped.
Under the reimbursable provisions of the Mutual Security Act,
Colombia purchased six T–33’s; Cuba received two T–33’s. Three
F–51’s were delivered to Guatemala and fifty AT–6’s were delivered
to Brazil.
U.S. Army, Caribbean Demonstration Teams visited Bolivia, Colombia,
Costa Rica, Nicaragua, Paraguay, Peru and Venezuela, demonstrating
U.S. matériel.
In order to expedite delivery of spare parts, the Army established a
procedure whereby emergency requirements for spare parts can be met
from Army stocks in the U.S. Caribbean Command.
A U.S. destroyer visited Venezuela during the period 5–10 April 1954
and conducted a series of orientation visits for Venezuelan naval
personnel.
A destroyer division exercised with ASW ships and other units of the Brazilian Navy off Rio
de Janeiro, Brazil, during the period 21–22 July 1954.
The U.S. military forces are sponsoring a translation program that
will supply Spanish speaking military forces in Latin America with
selected training publications.
