398. Memorandum of a Conversation, Embassy Residence, Panama City, July 23, 19561
PRESENT
- The President
- The Secretary of State
- Dr. Milton Eisenhower
- Asst Secy Holland
- Mr. Bernbaum
- Lt. Col. Walters
- President Ibañez
- Foreign Minister Sainte Marie
- Ambassador Mario Rodriguez
The President opened the meeting by congratulating President Ibañez on making what had been perhaps the shortest speech of the previous day. He himself would have liked to have been the one that made the shortest speech. President Ibañez said that the President’s speech had been much more interesting than his own.
General Ibañez said that first of all he would like to express to the President, to Secretary Dulles and to the Department of State his thanks for the assistance and comprehension that they had shown of Chile’s problems. Mr. Holland had also been most helpful to them. In reply to a question by the President General Ibañez indicated that crops had not been too good, they had had a lot of rain which had damaged the crops but some had been saved nonetheless.
The Chilean President in reply to a question about a possible currency reform indicated that he was having a study made of this question. He felt that it was desirable to eliminate the large number of low denomination bills in circulation and said that the Chileans liked to have coins of 10, 20 or 50 centavos in their pocket. The President jokingly said that this was true of all peoples.
The Secretary spoke of the popularity in some parts of the U.S. of the “Cartwheel.” President Ibañez said that this question was under study by experts and by the financial mission. He did not know whether it could be put into effect or not, nor did he know whether he could obtain congressional support for such a project.
President Eisenhower then congratulated the Chilean President on the vigor with which he was attempting to solve Chile’s economic problems, and President Ibañez after expressing his thanks said that this was the only way that such problems could be handled. His task was made more difficult by communist infiltration, particularly among school teachers but that this problem was being dealt with firmly by the Government.
[Page 815]President Eisenhower recalled his personal experience while he had been President of Columbia University. He had looked into the matter of alleged communist inclinations on the part of educators and had found that in many cases it was not so much communistic inclinations as resentment of the economic and social situation in which they found themselves. He also spoke of the need for parents to take a direct interest in the teachers who taught their children, to receive them socially and to get to know them.
President Ibañez said that Chile had adopted useful measures in this field and that teachers were among the best paid government workers in Chile. He said that the Government was dealing with subversion by firm but democratic, constitutional and legal means. President Eisenhower said that this was the only possible way to handle this question without falling into the same class as the communists.
General Ibañez then spoke of a communist professor in the Catholic University who had infiltrated his way into this otherwise very anti-communist institution. Subsequent investigation had shown that this man was in fact a communist courier.
The President then said that he had scant patience with those who were anxious to force the Chinese communists into the United Nations while they were obviously helping the communist world conspiracy and were still under condemnation as aggressors by the United Nations, were still holding prisoners and spreading hostile propaganda throughout the world. He did not feel that they should be allowed to boast that they had “shot their way” into the United Nations. President Ibañez then said that Chile fully supported the U.S. position on this issue and opposed the admission of Communist China into the United Nations where they would only create additional difficulties.
President Ibañez said that there was one additional matter to which he would like to draw the President’s attention. This was on matters relating to defense. Chile had received a small amount of help and this equipment was all concentrated in Antofagasta. Chile’s overall defense position was extremely bad and he would like to have at least the air force in an adequate position even if this were to be at the expense of something else, even if they had to pay for them. They had 4000 kilometres of coast line and an adequate air force was essential. They did not want a great deal—some fighters—some bombers, and facilities for training personnel. Equipment was useless without properly trained personnel.
The President said that this was the first that he had heard of this problem but that he would have it looked into. He asked the Secretary of State to look into this matter with the Department of Defense, and the Secretary said that he would.
[Page 816]President Ibañez again expressed his satisfaction at seeing the President in such good health.
The Secretary of State then said how happy and cordial our relations were with the Chilean Ambassador in Washington. President Ibañez expressed his satisfaction at hearing this and said that the same was true with Ambassador Lyon in Santiago. He then said that he would be very happy to have his picture taken with President Eisenhower and the meeting was concluded.
- Source: Eisenhower Library, Whitman File, International File. Secret. No drafting officer was indicated on the source text. President Eisenhower was in Panama for the Meeting of the Presidents of the American Republics. For documentation on this subject, see vol. VI, Documents 109 ff.↩