Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

373. Preliminary Notes on a Meeting of the Operations Coordinating Board²

Washington, January 19, 1955.

[Here follows discussion of agenda items 1 and 2, “Terms of Reference for a Temporary Interdepartmental Working Group on Admission of Visitors to the United States” and “Progress Report on NSC 5432/1 (Latin America).” For text of NSC 5432/1, “United States Objectives and Courses of Action With Respect to Latin America,” approved on September 3, 1954, see Foreign Relations, 1952–1954, volume IV, page 81.]

Agenda Item 3. Follow-up discussion of Courses of Action in Connection With Current Developments in Chile

Mr. Staats reviewed briefly the development of the Board’s consideration of a “Chilean Program”. Mr. Hoover explained Amb. Beaulac’s³ absence because of a personal emergency and introduced Mr. Atwood who read an informal report from Amb. Beaulac and discussed current conditions in Chile and proposed courses of action regarding Chile.

Mr. Overby of Treasury expressed support of the evaluation that the present Chilean Cabinet is “not much good”. He also supported the idea of holding up economic and financial assistance until and unless the Chilean Cabinet actually takes some positive measures.

Mr. Stassen said that the basic decision, which is one for the Department of State, is whether we want the present government of Chile to survive. He suggested that the United States had missed a good opportunity when it failed to help the previous government⁴ which had a good Finance Minister⁵ and a good program. He went on to say that the United States had held “too tight a rein” on Chile and that this represented an important principle of how to handle situations of this sort.

Mr. Hoover pointed out that the Finance Minister in the previous government had failed for internal reasons and not because of any action or lack of action on the part of the United States. Mr. Hoover pointed out that, for one thing, Prat had staked entirely too much on an inter-American bank which had not materialized.

Mr. Dulles suggested that it is unlikely that we’ll have anything except a bad situation in Chile for as long as President Ibáñez is around.

Mr. Rockefeller described at some length his conversation with Mr. Cruz-Coke.⁶

[Here follows discussion of Brazil followed by a discussion of Indochina in agenda item 4.]

2. Source: Department of State, OCB Files: Lot 62 D 430, Chile. Secret. Drafted by Max W. Bishop on January 20. In a memorandum to Henry F. Holland dated January 20, Bishop transmitted excerpts from his preliminary notes on this meeting. (Ibid., Central Files, 720.5/1–2055)
3. Beaulac was in Washington for consultations at the Department, but was unable to attend this meeting because of an illness in his family.
4. A new Chilean cabinet was announced by President Carlos Ibáñez del Campo on January 6.
5. Jorge Prat. Francisco Cuevas replaced Prat as Finance Minister on January 6.
6. Senator Eduardo Cruz-Coke, President of the Foreign Relations Committee of the Chilean Senate, was on a brief visit to the United States. He had discussed with Rockefeller the possibility of establishing unofficial contact with a Chilean representative in regard to economic matters of importance to the United States and Chile. (Letter from Atwood to Rockefeller, February 10; Department of State, Central Files, 832.10/2–455)