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

Eisenhower Library, papers as President, Whitman file

Minutes of a Cabinet Meeting, Held at the White House, 10:45 a.m., December 3, 1954¹

confidential

December 3, 1954, 10:45 a.m.

• The following were present:
  • President Eisenhower
  • Vice President Nixon
  • Sec. Dulles
  • Sec. Humphrey
  • Sec. Wilson
  • Mr. Brownell
  • Mr. Summerfield, and Asst. PMG Eugene J. Lyons, in part
  • Sec. McKay
  • Sec. Benson
  • Sec. Weeks
  • Sec. Mitchell
  • Sec. Hobby
  • Director Hughes
  • Gov. Stassen
  • Dr. Flemming
  • Chairman Young, and Mr. Sorenson² of CSC, in part
  • Dr. Burns³
  • Gov. Adams
  • Gen. Persons
  • Mr. Shanley, in part
  • Gen. Cutler, in part
  • Dr. Hauge, in part
  • Mr. Morgan,⁴ in part
  • Mr. Martin,⁵ in part

[Here follows discussion of matters unrelated to the Rio Economic Conference.]

Rio de Janeiro Conference—Sec. Humphrey reported briefly on the Rio Conference. He pointed out particularly for the benefit of Cabinet members who might have to face the question that the US effort got off to a bad start by virtue of rumors that the Administration was seriously divided on being generous or restrictive, and by the extremist opinions expressed by Rep. Fulton and Sen. Smathers.⁶ He believed that the situation had been corrected before the end of the Conference and that the agreements reached would be satisfactory to the Latin American countries.

The President inquired as to Latin American attitudes vis-à-vis Asia. Sec. Humphrey believed great jealousy would develop if the United States entered into lavish schemes in the rest of the world. The President asked as to the meaning of “lavish” and went on to emphasize that the United States had certain interests to protect in Asia and that protection of them would also serve the interests of Latin America. He believed the Joe Dodge organization⁷ being set up could serve to keep a watchful eye on this situation. Sec. Wilson suggested, and Sec. Humphrey agreed, that the situation might well be saved by tying any economic program on to military aid programs, of which the Latin American countries were not jealous.

Sec. Humphrey also pointed out that the proposal made by representatives of the United Nations Economic and Social Council for Latin America were overly extensive and most upsetting to satisfactory progress of the conference.

The President emphasized the need for partnership which could never be obtained merely by making outright grants. He believed that there could be considerable accomplishment derived from smaller private meetings with foreign leaders for the purpose of encouraging the flow of private capital.

[Here follows additional discussion of matters unrelated to the Rio Economic Conference.]

1. These minutes were signed by Mr. Minnich.
2. William F. Sorensen, Jr., Special Assistant.
3. Arthur F. Burns, Chairman, Council of Economic Advisers.
4. Gerald D. Morgan, Administrative Assistant to the President.
5. I. Jack Martin, Administrative Assistant to the President.
6. Reference is to Senator George A. Smathers (D.-Fla.), Special Congressional Adviser to the U.S. Delegation, and Representative James G. Fulton (R.-Pa.), an observer at Quitandinha for the House Foreign Affairs Committee. In a press conference on Nov. 25, 1954, Representative Fulton, supported by Senator Smathers, criticized U.S. economic policy developed for the Rio Economic Conference as inadequate to meet the needs of the Latin American countries. Documentation relating to the incident is in file 365.
7. Reference is to the Council on Foreign Economic Policy, established on Dec. 11, 1954, under the chairmanship of Joseph M. Dodge. For pertinent documentation, see volume i .