75. Letter From the Secretary of the Treasury (Humphrey) to the Acting Secretary of State1

Dear Herb: Thanks for yours of the 10th. As you know, I don’t believe much in “dollar diplomacy” except where loans are made on a constructive and sound basis. Bad loans lose both the money and the friend.

The Export-Import Bank, under Sam Waugh, is improving its South American contacts and, as you know, Messrs. Waugh and Holland are starting this week on the first of several trips to Latin America. The Treasury has also added to its staff in Latin America.

I am in favor of the most careful advance consideration of our program for the Buenos Aires Conference, but I believe it would be well to delay conclusions as to the precise method of handling it at least until the return of Messrs. Waugh and Holland from their present trip.

I am sure you would agree with me that present political situations in the two largest countries of South America make it very difficult to plan ambitious programs at this time. If you have any specific suggestions in mind, I will be interested to hear them.

Best to you.


  1. Source: Department of State, Central Files, 820.10/11–1455.