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

378. Preliminary Notes on a Meeting of the Operations Coordinating Board, Washington, April 13, 1955¹

Washington, April 13, 1955

1. Special Report on Chile

Elmer Staats gave a brief introduction of the item. Mr. Hoover circulated the memorandum which he had received from ARA² and said that, while we have a great deal of concern over the situation in Chile, it is one in which there is little that the United States can do itself. We must merely keep a careful eye on the situation and move in if and when there is an opportunity. There was general agreement that it would be very worthwhile if the Chilean Government would obtain the services of a top-flight firm, such as Klein and Saks from New York.³ Mr. Hoover pointed out that Mr. Klein⁴ was in poor health and that it was really regrettable there were not more firms of the high caliber of this firm. Mr. Stassen mentioned FOA’s experience with one or two firms which had been of great help. Nelson Rockefeller wondered whether there was anything which could be done internally in Chile to unite some of the factions. Mr. Hoover replied that this is a situation in which one is practically forced to “play it by ear” and that we have considerable flexibility and hope to have that continued flexibility in coming legislation to move in upon a situation quickly.

It was agreed to approve last week’s paper (dated March 28)⁵ with the understanding that the paper circulated by the Department of State today would be an addendum and that there would be added a reference to the International Monetary Fund, as requested by Mr. Overby of Treasury, in paragraph 4 of last week’s paper.

[Here follows a discussion of items unrelated to Chile.]

1. Source: Department of State, OCB Files: Lot 62 D 430, Chile. Secret. Drafted by Bishop.
2. See the editorial note, supra.
3. A firm of economic consultants.
4. Julius Klein, Director of Klein–Saks. He had served as Assistant Secretary of Commerce.
5. Reference is to the Supplementary Report on Chile, circulated to the OCB on March 28 under cover of a memorandum by Staats. (Department of State, OCB Files: Lot 62 D 430, Chile)