42. Memorandum From the Assistant Secretary of State for Inter-American Affairs (Holland) to the Under Secretary of State (Hoover)1
SUBJECT:
- Grant aid to Guatemala
An amendment to the Mutual Security Act has been passed by the House of Representatives to increase grant aid to Guatemala from $10,000,000 to $15,000,000 for fiscal 1957.
I understand that ICA has taken a position opposing this increase on the grounds that it cannot be justified for Guatemala. If the Congress wishes to appropriate this sum for Latin America, without earmarking it for Guatemala, ICA would have no objection.
In my judgment it would be very unwise politically for the Department of State openly to oppose this increase. Our opposition will be exploited for demagogic purposes as a withholding of aid from “little Guatemala” who “drove the Communists out”.
I recommend that the Administration position be the following:
The Administration originally requested $5,000,000 of grant aid for Guatemala. The Foreign Affairs Committee raised this figure to [Page 119] $10,000,000. In agreeing to this increase, the Administration felt that if more were needed it would be provided from other sources. If the Congress elects to appropriate an additional $5,000,000 for Guatemala the Administration will try to see that it is constructively utilized.
Recommendation:
That you seek Mr. Hollister’s concurrence in the above position.2
- Source: Department of State, Central Files, 714.5–MSP/6–1256. Confidential.↩
- A handwritten notation on the source text by Robert G. Barnes reads: “I concur in the policy but do not see the value of the recommended action at this stage.” In a second notation, Hoover wrote: “Concur with Mr. Barnes.” In telegram 336 to Guatemala City, June 8, the Department informed the Embassy that on June 7 the House of Representatives approved an additional $10 million grant to Guatemala, raising the total appropriation for fiscal year 1957 to $15 million. (Ibid., 714.5–MSP/6–856)↩