839.00 TA/3–3053: Airgram

The Acting Secretary of State to the Embassy in the Dominican Republic 1


A–117. Reference is made to the Embassy’s despatches 503 of January 2, 1953,2 and Totec 41 of March 30.3 Reference is also made to those [Page 939] portions of despatch 578 of January 27,4 related to the United States technical assistance program.

In despatches 503 and 578 (page 37), the Embassy suggests that careful consideration should be given to the propriety of curtailing or even terminating the United States technical assistance program in the Dominican Republic unless Generalissimo Trujillo adopts a more satisfactory attitude and takes steps to improve the climate for foreign investment. This suggestion is made in view of the recent failure of the Dominican Government to respect its contractual obligations to United States companies and in view of unofficial threats to expropriate companies in which United States investors have substantial interests.

The Department is fully aware of this situation and can understand sympathetically the position which the Embassy is inclined to assume because of it. The Department has concluded, however, that it would be unwise to attempt at this time to withhold or withdraw technical assistance either as a measure of disapproval of the present unfavorable treatment of United States business interests or as a means of influencing the Dominican Government to change its practices in this regard. One of the factors influencing the Department in reaching this conclusion is the belief that the program offers only limited leverage.

  1. Drafted by Cedric C. Philipp of the Office of Regional American Affairs; signed for the Acting Secretary by Mr. Cale.
  2. Despatch 503, from Ciudad Trujillo, contains a report concerning the operation and status of programs in the Dominican Republic authorized by the Mutual Security Act of 1951 (739.5 MSP/1–253).
  3. The referenced despatch, from Ciudad Trujillo, contains a program summary for the month of February by Director of Technical Cooperation in the Dominican Republic George J. Greco (839.00 TA/3–3053).
  4. Despatch 578, from Ciudad Trujillo, reported on the personality and current policies of Generalissimo Trujillo (739.11/1–2753).