Foreign Relations of the United States, 1955–1957, American Republics: Multilateral; Mexico; Caribbean, Volume VI

312. Memorandum From the Officer in Charge of Dominican Republic Affairs (Fromer) to the Director of the Office of Middle American Affairs (Neal)¹

Washington, January 7, 1957.

SUBJECT

• Re-Evaluation of Overall U.S. Policy Towards Dominican Republic

Problem:

Various developments over the past months appear to require at this time a stock-taking and re-evaluation of our overall attitude towards the Dominican Republic, especially in view of the pending matters which we are being called upon to decide involving assistance of one kind or another to the Dominicans.

Pending Matters:

1. Dominican application for Export-Import Bank loan²

A. Action on next project (equipment) is due in mid-January, following suspension, at Dominican request, of waterworks project.

2. U.S. Invitations to Lieutenant General José García Trujillo, Minister of Armed Forces

A. Department of Defense official visit to U.S.

B. Air Force visit to Robins Air Base, Georgia, starting on January 31, 1957.

C. Army visit to Caribbean Command exercises in April 1957.

3. Dominican requests for military equipment

A. Six destroyers and twenty PCS-type ships.

B. One B–26, one C–54 and two C–47 aircraft, and four helicopters.

4. Dominican request for training for “Ramfis”³

A. Two places for Fort Leavenworth course beginning in August 1957.

B. Two U.S. Army officers to tutor him from January to June 1957.

Negative Developments:

1. Dominican actions against Cuba

A. Radio and press attacks against Batista.

B. Movement of Anti-Batista Cubans to and through Dominican Republic.

C. ALUSNA … and Embassy reports of Dominican financing, arming and instructing of certain Cuban revolutionaries.

D. Keeping alive Cuban-Haitian troubles.

2. Murphy case

A. Evidence Gerald Lester Murphy involved in Cuban and Galindez affairs.

B. Suspicious nature of his disappearance.

3. Dominican pressure on U.S. firms in Dominican Republic

A. Seeing “handwriting on wall”, West Indies Sugar Corporation selling out to Trujillo.

B. Lock Joint Pipe company under press attack, loan action held up by Dominicans.

C. U.S. accountants fear new law will force them out of business.

D. ALCOA required to pay higher duties on bauxite exports.

4. Improper Dominican Consular activities in the U.S., especially N.Y.C.

A. Organizing picketing demonstrations.

B. Carrying on unregistered foreign agent activities.

C. Assignment of undesirable officers.

5. Dominican violation of ICA Education Agreement

A. Normal schools, now under our supervision, to be turned over to Spanish religious groups.

Positive Developments:

1. Dominicans have given assurances:

A. Radio and press attacks to cease.

B. Cuban “visitors” to leave unarmed.

2. Cuban Minister of Agriculture to visit Dominican Livestock show.

Discussion:

The basic question is:

Shall we take a negative or go-slow attitude on pending matters listed above because we feel that the attitude and policies of the Dominican Republic have not been compatible with our own national interests and we should therefore apply some pressure to bring about what we feel is the required change in Dominican conduct?

1. Until the recent Dominican assurances regarding its relations with Cuba, we had at least some reason to act. Now, we have to wait and see if these assurances are maintained. The Cubans (despite Batista’s Vision interview) have made a friendly move in the decision to send the Cuban Minister of Agriculture⁴ to the Dominican Republic.

2. As for the Murphy case, the Embassy in Ciudad Trujillo has begun to veer towards the possibility that Murphy was done away with by Dominican Government agents. We must consider, even if the case is never solved, that if any details become public, we will be faced by a critical press campaign which could easily outdo the one generated by the Galindez case. If this happens, any evidence of U.S. support or assistance to the Dominican Republic, however justifiable it may be on some grounds, will certainly come under domestic attack on others.

3. The evidence we have of efforts by the Trujillo regime to pressure, if not drive out, U.S. investment in the Dominican Republic must cause us to consider whether we would not, given the centralized Dominican economy, be helping to finance this process through an Eximbank loan. For example, to pay off the West Indies Sugar Corporation, Trujillo needs dollars which he indirectly would receive through such a loan.

4. Since nearly all the evidence on this count comes from FBI sources, it is up to the Department of Justice to decide what, if anything, should be done. Apparently, some consideration is being given to possible prosecution of one unregistered Dominican agent.

5. Démarche of ICA Education Chief to Cabinet Minister in early December has resulted in postponement, at least temporarily, of the projected Dominican move to supplant our technical assistance program unilaterally.

Recommendations:

I would recommend the following approach:

1. We should tie our attitude toward such things as arms requests, training of Dominican military, et cetera, with Dominican conduct towards Cuba. If the Dominicans prove to our satisfaction that they are maintaining their end of the bargain, we should act affirmatively on pending matters 2, 3 and 4, within limits set down by the Department of Defense. In view of the present necessity to wait and see, we should take no action on these matters at this time.

2. Action on the Eximbank loan should be linked to Dominican treatment of U.S. investment in the Dominican Republic. Yet, in practice, such a link is difficult to apply. Aside from appropriate occasions when informal verbal representations are possible, the only practical method seems to be through the pacing and speed with which action is taken on the various project applications. Whether or not the Eximbank is prepared to follow such a strategy is another thing. As a general rule, for the present, I would recommend a leisurely, rather than hurried, treatment by the Bank. And anytime that we feel the situation demands it, we can ask the Bank to hold up further action.

3. The Murphy case is so unclear that for the moment there appears to be no other attitude to take than a cautious unprejudiced one. We must be prepared for a renewed outburst of anti-Dominican opinion in the United States at any time that this case becomes another cause célèbre. We will then have to react accordingly.

4. We should continue to follow closely the activities of Dominican Consular officers in the United States. Where evidence justified—as in Puerto Rico a few months ago—we should request the recall of officials who behave improperly.

5. We should seek every opportunity to indicate as delicately as possible upon appropriate Dominican officials, preferably from the Generalissimo down, any move to cut the ground out from under the ICA Education program would not be compatible with their professed and repeated admiration for the United States and everything American.

1. Source: Department of State, Rubottom Files: Lot 59 D 573, Dominican Republic. Confidential.

2. A memorandum of conversation dated June 21 by Hoyt records that Ambassador Salazar informed the Department of State that his government was interested in obtaining a loan from the Export-Import Bank to finance projects in electrification and housing, and highway, airport, and irrigation construction. Salazar stated the Dominican Government was interested in a loan of approximately $25 million. (Ibid., Holland Files: Lot 57 D 295, Dominican Republic)

   A memorandum of conversation dated September 28 by Julian P. Fromer records that Vance Brand, a director of the Export-Import Bank, stated that the Bank had reconsidered its plan to make a loan to the Dominican Republic, and was prepared to approve a $4 million line of credit for the Dominican Government to improve the waterworks system of the capital. (Ibid., Central Files, 839.10/9–2856)

   A memorandum of conversation dated October 2 by Fromer stated that Rubottom informed Manuel de Moya, Dominican Minister of State without Portfolio, and Milton Messina, Governor of the Central Bank of the Dominican Republic, that the Export-Import Bank would postpone announcement of the approval of a loan to the Dominican Republic. Rubottom added that the line of credit to finance the waterworks project had been approved by the Bank. (Ibid., 839.2614/10–256)

3. Rafael L. Trujillo, Jr.
4. Fidel Barreto Martínez.