203. Memorandum of a Telephone Conversation Between the Director of the Bureau of the Budget (Brundage) and the Secretary of State, Washington, June 25, 1957, 9:08 a.m.1


The Sec referred to the 25 million for Spain—he has been studying it carefully and is not sure it can be fully justified on economic grounds but he thinks it can be on political grounds and he would hope B could concur in that. B said we questioned 25 last year and he understood they made commitments to put their financial house in order and B sees no evidence of it—like Turkey. The Sec said they have done something. Our political people feel it important irrespective of that. The Sec said he would cut it to 20. B said 5 on agriculture would not be enough and the Sec said no. The Sec thinks it has to be done right away and B will look at it in terms of 20. B said you think they will take themselves in hand—B is worried re propping up the regime if they are not willing to tackle their financial problems. The Sec said you are taking a chance—he would not want to be their guarantors.

  1. Source: Eisenhower Library, Dulles Papers, Telephone Conversations. No classification marking. A handwritten notation on the source text reads: “Reported by Sec at Tues, staff meeting, Dillon & Elbrick present.”