54. Editorial Note
In a draft memorandum to Under Secretary Herter, dated April 15, Rubottom stated that the Bureau of Inter-American Affairs believed that a grant of $7.5 million to Guatemala, as recommended by the Embassy in Guatemala, was politically justified. The draft memorandum reads further: “On the question of aid for Guatemala, [Page 138] there is a difference of opinion between ARA and E. Representatives of E take the position that, on balance, it appears that the economic objectives of the current aid program have been accomplished, and that a continuation of grant aid to Guatemala would be difficult to defend from the standpoint of both existing U.S. policy in Latin America and the relatively strong economic position of Guatemala in comparison to other countries in the Hemisphere not receiving U.S. grant aid.” (Department of State, Guatemala Files: Lot 60 D 647, ICA–Grant Aid) In a letter to Ambassador Sparks, April 29, King stated: “The Under Secretary has reached agreement with Mr. Hollister of ICA to include defense support funds for Guatemala in the FY–1958 MSP budget presentation to Congress. However, the amount to be requested for Guatemala was reduced from $7.5 million to $5 million.” King stated further that the objections of the Bureau of Economic Affairs to the grant aid were overruled by Deputy Under Secretary of State for Economic Affairs C. Douglas Dillon who approved the recommendation that further grant aid for Guatemala was justified. (Ibid.)