752.5 MSP/4–954: Telegram
No. 914
The Ambassador in Spain (Dunn) to the Department of State
priority
730. Please pass to FOA and Williams. Reference: (a) Tousfo 169;1 (b) FOA/Washington memorandum Ringer to FitzGerald, March 29,2 copy to Dunham. Since NSC planning board scheduled consider progress Spanish program April 12, believe following views might be helpful as representing unanimous opinion of both Embassy and FOA here.
When ultimate congressional decisions make necessary public announcement of any FY 1955 aid figure less than for current FY, Spanish Government will be faced with disappointment both from public opinion and among its own officials themselves who have been unduly optimistic re amount US aid forthcoming. This reaction might well lead to less effective cooperation in carrying out of our Spanish program although there is no reason to believe at this point that Spanish Government will not live up to the letter of their agreement. Therefore, implementation of recommendations Tousfo 169 as reflected in reference (b), or similar devices for increasing “effective” economic aid would appear not only desirable but advisable if we wish to insure full effectiveness US program in Spain.
Believe such program might strengthen hand within Spanish Government of supporters of liberalization of economic policies which over long run is best avenue to increased foreign private investment and trade so vitally necessary here. Unless this element encouraged possible that forces which desire more government control may emerge even stronger.
- Dated Mar. 25, this telegram urged the appropriation of more than $30 million for economic aid to Spain for fiscal year 1955, and, if this was not possible, to use the counterpart funds generated by whatever was appropriated for economic purposes, as opposed to base construction, in order to increase the effective level of economic aid. (FOA telegram files, lot W–130, “Madrid Tousfo”)↩
- Not further identified.↩