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

Conference files, lot 60 D 627, CF 227: Telegram

The Acting Secretary of State to the Secretary of State, at Caracas

confidential

Washington, March 6, 1954.

Tedul 25. To give you maximum support the cabinet, March 5 approved in principle a memorandum¹ I presented as basis for announcement by you of administration determination to implement Milton Eisenhower report. Memorandum requested:

(1) That cabinet follow general guidance of President’s comment to you in memo January 12² that “I am struck by the fact that a very small loan investment or grant on our part might reap very definite and extensive advantages to US,”³

(2) That agreed statement policy Export Import Bank be carried out to yield maximum benefit Export Import Bank as instrument national policy;

(3) That support be given specific requests supplemental appropriations exchange persons (strategy on this will be first to attempt restoration house cuts of regular budget request), said American schools, and Inter-American highway ($7 million supplemental request); and

(4) That there be general advance assurance cabinet support such 1956 budget requests as (a) increase $2 million or more for technical assistance, (b) $8 million total for Inter-American highway, (c) $2 million total Rama road Nicaragua, (d) increase $2 million USIA, and (e) increase $900,000 for Inter-American organizations.

The minute of cabinet meeting⁴ indicates State, Commerce, FOA and Budget will determine specific steps to be taken for financing the measures set forth in the memorandum.

Also particular attention cabinet was called to need for redoubling efforts to satisfy Panama on matters which do not affect fundamental rights, e.g. more equitable treatment Panamanian employees in Canal Zone, reduction non-essential commercial competition by US agencies Canal Zone, and legislation and appropriations for economic development fund in lieu change in treaty annuity.

If you consider it especially desirable Milton Eisenhower could come to Caracas at such time as you may indicate. He is inclined to doubt wisdom of his coming particularly view recent comments Drew Pearson column.

Smith

1. The text of the referenced memorandum, with a few minor exceptions, was identical to that of Mr. Woodward’s memorandum, dated Mar. 2, 1954, p. 217.
2. A copy of the referenced memorandum is in file 120.220/1–1254.
3. For the actual text of President Eisenhower’s comment to Secretary Dulles, see footnote 3, p. 217.
4. A copy of the minutes of the Cabinet meeting, held Mar. 5, 1954, signed by Mr. Minnich, is contained in the Eisenhower Library, papers as President, Whitman file.