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

99. Memorandum From the Acting Assistant Secretary of State for Inter-American Affairs (Rubottom) to the Special Assistant for Mutual Security Affairs (Barnes)¹

[Washington,] January 24, 1957.

SUBJECT

• LPG Paper No. 5²—Smathers’ Amendment on Latin America

ARA’s views on the problem raised by this paper are as follows;

1. ARA does not support a request for new funds for Latin American regional economic development (Smathers’ Amendment) in FY 1958. It believes these funds are unnecessary. However, if a Congressional proposal along these lines is introduced again, ARA will not formally oppose it; rather it believes the Executive Branch should indicate the belief, as it did last year, that if the proposal were adopted it could be used effectively for the intended purposes.

2. ARA would support a request that the unobligated balances from FY 1957 Smathers’ Amendment funds be made available in FY 1958. The authorizing legislation (MS Act of 1956—PL 726 84th Congress³) indicated a Congressional intent to have these funds remain available until expended and the Executive Branch indicated it could use them effectively for the intended purposes. It would seem proper to assure the Congress of an intent to carry out the Executive Branch position, for which more time is necessary, in order to find and approve proposals that meet the terms of this legislation and the criteria established, that they are sound, bankable, and for which financing is not available from normal domestic, foreign, or international sources.

3. If any of the funds are continued, ARA does not wish to eliminate the loan provision, believing that preference should be given to proposals that meet the terms of the legislation and the above criteria.

4. ARA believes that the use of these funds to assist international organizations should be decided on a case by case basis.

5. As assistance from these funds to an international organization may be approved, ARA believes authority should be sought to provide such assistance without the need for any special Presidential determination.

6. ARA does not approve of the use of these funds for any military purpose.

1. Source: Department of State, Rubottom Files: Lot 59 D 573, Smathers Amendment. Official Use Only. Drafted by Williams.
2. Reference is to a Legislative Program Group (LPG) paper concerning possible additional appropriations under the Smathers’ Amendment for Latin America, submitted to the MSP Studies Committee in the Department of State on January 22. No copy of the paper has been found in Department of State files.
3. For text, see 70 Stat. 555.