Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

820.2395/12–953

The Acting Secretary of State to the Director of the Foreign Operations Administration ( Stassen )¹

secret

[ Washington ,] February 5, 1954.

My Dear Mr. Stassen : Reference is made to your memorandum of December 9, 1953² in which you request comments from this and other Departments on the recommendation of the Foreign Operations Administration that the Latin American rubber research program be terminated in so far as FOA is concerned as of June 30, 1954. Your memorandum further suggests the possibility that the program be taken over by the Latin American governments concerned, by the American rubber industry, or by other United States Government Departments.

Careful consideration of this question in this Department has led to the following conclusions:

1. This research program affords a continuing opportunity to accumulate experience and knowledge in fighting leaf blight that might prove invaluable if the leaf blight should somehow be transmitted to the Far Eastern rubber holdings.

2. A research program would seem to be a logical complement of any program of agricultural diversification in Latin America which may include rubber planting. The possibility of producing rubber economically as a cash crop in Latin America would seem to depend on the development of a high-yielding blight resistant plant.

3. If the Foreign Operations Administration does not believe that it can continue the inclusion of an appropriation of $300,000 in its budget for the 1954–55 fiscal year, this Department would endorse a transfer of the program to another appropriate agency of the Government. Alternatively the program might be supported by the rubber manufacturing industry, by a private foundation, or by the Latin American governments concerned. It would not be within the functions of this Department to take jurisdiction over this program. The Department would be willing, however, to use its good offices with other governments to investigate the possibility of their taking over the program if it should be decided to adopt that alternative.

4. An abrupt announcement that the research program will be terminated at the end of June 1954 might create repercussions in the Latin American countries involved. This Department, therefore, would wish to be kept advised as to further action by the Foreign Operations Administration in this matter in order to allow time for adequate consultation with the governments concerned. In this connection FOA might wish to consider extending the research program through a portion of the next fiscal year to allow more time for a suitable disposal of the program.

Sincerely yours,

For the Acting Secretary of State:

Samuel C. Waugh

Assistant Secretary

1. Drafted by A. J. Macone and Stanley Nehmer of the Office of International Materials Policy; cleared with that Office and the Office of Middle American Affairs.
2. In the referenced memorandum, Mr. Stassen stated that the reasons for recommending the termination of the rubber research program in Latin America were: (1) the project was of marginal importance to U.S. military security interests, (2) it had not contributed effectively to the U.S. objective of promoting balanced economic development, and (3) there was at present a world surplus of natural rubber. (820.2395/12–953)