105. Letter From the Secretary of State to Senator Dennis Chavez1
Dear Senator Chavez: Reference is made to your letter of May 29, 1957 and the Department’s acknowledgment of June 3, 19572 concerning S. 2157, “To authorize appropriation of an additional sum required for completion of the Inter-American Highway”.
The considerations which the President pointed out in his letter to the Vice President and the Speaker of the House on April 1, 1955 are still very pertinent and are repeated herewith: (1) a completed highway will provide a very important contribution to the economic development of the countries through which it passes; (2) there will be an opportunity for increased trade and improved political relations between these countries and the United States; (3) the resultant increase in tourist traffic will not only be important to cultural relations but also serve as a very important element in the development of their economies through earnings of foreign exchange; and (4) the existence of such an all-weather highway would be of substantial security importance both in providing overland contact and communications as far southward as the Panama Canal and in providing an important physical link in these countries’ common defense of the Western Hemisphere against aggression without and foreign subversion within.
The completion of this important project is one of the most significant actions which this Government can take toward the American Republics in the foreseeable years. The completion of the Inter-American Highway has long been a clearly established objective of United States policy. For many years the United States, together with its Central American neighbors, has been cooperating in the construction of this Highway. There is no question about the United States policy with regard to the Highway. We are publicly committed to aid in its early completion.
In 1955 the United States made a commitment to attempt to complete this highway within three years. Since the estimates were made at that time a certain rise in cost has developed for two reasons: (a) the lack of detailed field data on that section of the highway in southern Costa Rica and northern Nicaragua; and (b) the rise of new construction costs since 1955, which are roughly 16 percent. It is important from the viewpoint of the United States [Page 419] foreign relations in that area that we continue the accelerated construction of this highway. In view of the fact that the former estimate for the amount of funds necessary to complete this highway was made several years ago, the increased cost of labor and material, as noted above, together with the domestic highway legislation which will make the bidding on the construction projects in this area less attractive, it is quite clear that the original estimate will not be sufficient to complete this highway, and the additional $10,000,000 appropriation will be required.
The Department of State urgently recommends the prompt enactment of the proposed legislation in order that the uninterrupted construction of this highway may continue to its final completion.
The Department has been informed by the Bureau of the Budget that there is no objection to the submission of this report.
Sincerely yours,