9. Editorial Note

On March 28, Assistant Secretary Holland appeared before both the OCB and the NSC Planning Board to explain why the Bureau of Inter-American Affairs (ARA) believed that NSC 5432/1 was inadequate to meet United States problems in Latin America. At the OCB meeting, he proposed in general terms several amendments which he believed would strengthen the policy statement, particularly with respect to the Soviet economic offensive in Latin America, and loan operations conducted there by the Export-Import Bank and the International Bank for Reconstruction and Development (IBRD). (Minutes of OCB meeting, dated March 30; Department of State, OCB Files: Lot 62 D 430, Minutes) In a later memorandum addressed to the Secretary, recommending approval of the third progress report on NSC 5432/1, Holland expanded his explanation as follows: “I feel our policies should be reviewed in the light of the new Soviet tactics, particularly to see if a way cannot be found, without violating overall US economic and commercial policies, to relate the continuing receipt by Latin America of the benefits derived through trade with the United States to performance in the anti-communist field.” He further stated his belief that “a clearer definition of US military objectives in Latin America is required and that policies tending to interfere with arms standardization or tending to result in diversion to military purposes of resources which might better be devoted to economic development should be reviewed.” (Memorandum from Holland to Dulles, May 1; ibid., S/SNSC Files: Lot 63 D 351, NSC 5432—Memoranda)

On April 12, the NSC Planning Board considered and concurred in an OCB recommendation for review of NSC 5432/1. The Board also agreed to request the Department of State to prepare a draft revision for consideration, if the NSC adopted this recommendation. On May 3, the NSC directed its Planning Board to review NSC 5432/1. (See Document 11) ARA’s views concerning desirable changes in NSC 5432/1 were incorporated into an extensive memorandum, dated May 23, drafted by Holland and several officers in the Office of Regional American Affairs (AR), and forwarded to Bowie, the Department’s representative on the NSC Planning Board. (Memorandum from Holland to Bowie, May 23; Department of State, S/PNSC Files: Lot 61 D 167, NSC 5432) Holland also had a draft of a revised policy statement on Latin America prepared in ARA, which was submitted to the Planning Board for discussion at its meeting on May 28.

At meetings during June, July, and August the NSC Planning Board Assistants, in conjunction with the Planning Board, reviewed [Page 61] and amended several successive drafts of a new policy statement. On August 16, the Planning Board discussed a finalized version, together with a related financial appendix, but since several disagreements with respect to the statement, numbered NSC 5613, remained unresolved, the Board agreed to submit it to the NSC under date of August 20. (Memorandum from Deputy Assistant Secretary for Inter-American Affairs Roy R. Rubottom, Jr., to Holland, August 17; ibid., Central Files, 611.20/8–1756)

Records of NSC Planning Board meetings and extensive related documentation are ibid., S/PNSC Files: Lot 61 D 167.