Foreign Relations of the United States, 1958–1960, American Republics, Volume V

214. Memorandum of a Conversation, San Carlos de Bariloche, February 28, 1960, 5:30 p.m.¹

US/MC/11

San Carlos de Bariloche, February 28, 1960, 5:30 p.m.

PARTICIPANTS

• US
  • The President
  • Lt. Colonel Walters
• Argentina
  • President Arturo Frondizi
  • Dr. Alejandro Orfila, Minister-Counselor of the Argentine Embassy in Washington

SUBJECT

• Various

1. East-West Relations—The President opened by saying how happy he was to have this opportunity to talk to Dr. Frondizi in such, pleasant surroundings. As he had said the previous day, he felt that the United States should consult more with its partners in Latin America concerning world problems and he wondered if there were any questions Dr. Frondizi would like to ask concerning this. The Argentine President said he would like to know the President’s estimate of the world situation, whether the Russians would accept an equitable settlement that would insure world peace or whether we had to look forward to more of the same type of thing we had been through for many years. The President spoke at some length on this subject and indicated that he did not believe that the Russians would resort to general war but would continue their attempts at subversion in order to enlarge the area they controlled. We had had many evidences of this and it was obvious we must keep up our determination and strength for the foreseeable future. This represents a very serious burden for the United States. We were expending some 45 billion dollars for military purposes in our own budget and support for allies elsewhere. This represents some 60% of our total budget. The Russians knew that if they resorted to general war they would either be destroyed or sustain intolerable damage and he did not believe that they would do this. Nevertheless, we had to keep our guard up. With regard to disarmament, he felt that the Russians at some point might be willing to make some sort of agreement in order to spend more on raising the standard of living of their people. Khrushchev had told him this. However, we had tried to work out an agreement on nuclear tests but despite two years of negotiation nothing had been achieved due to the Russians’ unwillingness to accept an adequate system of inspection and control. Perhaps in the future as the Russians educate their people, there might be a change within the Soviet Union and some relaxation of their control but for the time being he foresaw a continuation of the present situation.

2. Cuba—The President said that Cuba was a source of great concern to us at the present time and the problem was particularly awkward due to the fact that the law giving the Cubans preferential prices for their sugar was due to come up for renewal in the US Congress in June. Congress was in a very tough mood and the renewal of this law was very dubious if things continued in Cuba the way they had been going. Under this law we gave the Cubans some $175,000,000 a year. The President said what he would like to obtain was a renewal of the present law with the additional authority for the President to suspend the payments if in his opinion the Cubans were failing to live up to their inter-American obligations but he was not even sure he could get this. President Frondizi said that Argentina had also been concerned about this problem. They maintained correct diplomatic relations with Castro’s government but his Latin American press service had been spreading misleading and false news in Argentina and the Argentines had made their concern in this matter plain to the Cubans. The President said that this Cuban situation was a serious problem for the Organization of American States and that while Trujillo was also a problem it was not as serious at the present time because of the renewal of the law. The Cubans had indicated they would be willing to negotiate but had attempted to set conditions for the discussion. He felt this was a problem for the whole of America and not just for the United States. President Frondizi agreed with this.

Later in the conversation the President again expressed his concern regarding Cuba and said that anything the Argentines could do to induce the Cubans to be more amenable would be helpful. Anything that any of the Latin Americans could do in this respect would be useful in solving this problem. President Frondizi said that he shared President Eisenhower’s concern and that he would do everything possible to bring the Cubans to reason.

3. Recognition of Communist China—President Frondizi asked whether the United States would consider under present circumstances the recognition of Communist China. The President spoke at some length on this subject recalling that the Chinese Communists had been branded as aggressors by the United Nations, that this condemnation had not been withdrawn, that they had engaged in many hostile actions against their neighbors, that they were continuing their efforts at subversion in the Far East, that they had failed to release US prisoners as they had agreed to do two years ago, that the United Nations Charter starts out with the words “We, the peace loving nations,” that the Chinese Communists had given no indication of being peace loving. He felt at this time such recognition would be regarded as a surrender and would be totally unacceptable to the American people. Incidentially, added the President, the economic situation on Formosa or Taiwan as the Chinese called it was greatly improved.

4. Argentina’s Relations with its Neighbors—The President then expressed his satisfaction and pleasure at the recent signature of the treaty concerning the Latin America regional free trade area. He felt this was a step in the right direction. President Frondizi said he had long been convinced of the importance of this, that during his trips as president-elect to Brazil, Uruguay, Chile and Peru, he had made evident to the governments of these countries the importance which he attached to an agreement of this type. Argentina at the present time had excellent relations with all its neighbors. With Brazil they enjoyed excellent relations and in fact Argentina shortly intended to purchase railroad tracks, rolling stock, cars and trucks from Brazil at a slightly higher price than world markets in order to help the Brazilians. The President said that he had been able to notice these good relations in Brazil where President Kubitschek had spoken in the highest terms of President Frondizi and his policies. The Argentine President then said that relations with Chile were excellent. They had had a border problem since 1902 and this had frequently poisoned relationships between the two sister nations. They had practically settled all of their differences and expected to sign a treaty with Chile in the near future.

In the economic field they were also working closely with the Chileans and were discussing plans for building a natural gas pipe line from northern Argentina into the Antofagasta area to facilitate the establishment of industry in that region. They were also considering a natural gas line across the Andes further south and in Patagonia were studying the possibility of an oil pipe line from the oil wells to Chilean ports where the oil would be shipped out in Argentine ships.

Similarly, just before the signature of the agreement on the free trade area, the Chileans had some difficulty because of domestic fears that Argentina, by flooding Chile with cheap agricultural products and meat, might upset Chile’s production and he had agreed to enter a proviso which would enable the Chileans to limit the quantities of foodstuffs of this nature which Argentina could send in and, as a consequence of this, Chile had been able to sign the treaty.

With respect to Paraguay, relations were good despite the political instability in that country which creates a very difficult economic situation for the Paraguayans. Relations with Uruguay were excellent and here again the Argentines were considering the possibility of the construction of a natural gas pipe line under the Rio de la Plata to ease the Uruguayan power shortage.

5. Peru-Ecuador Boundary Dispute—The President then spoke of the difficulties between Peru and Ecuador and President Frondizi said that some solution must be found for this problem. Both the United States and Argentina were guarantors and it was a matter of concern for all of the Americas that this continued conflict existed. After some discussion, President Eisenhower expressed the thought that arbitration or mediation by Latin American powers, such as Argentina, Brazil and Uruguay, might be acceptable to the two parties to this dispute. He felt that President Kubitschek’s forthcoming visit to Argentina might be a good time to take some action in this respect and President Frondizi agreed with him.

6. Argentine Armed Forces—The Argentine President then said that he would like to bring up again the subject he had discussed with the President during his visit to the United States and that was the modernization of the Argentine Armed Forces. He had been told that there was some difficulty in this matter because of the lack of a bilateral agreement between Argentina and the United States. A 13 million dollar credit had recently been given to the Argentines which they had expended mostly for aircraft with small amounts going to the Army and the Navy (for ASW equipment). However, the Armed Forces imposed a heavy burden on the Argentine economy and they hoped that with the modernization of the Armed Forces they could diminish them by about 50%. If he could obtain more modern rifles, some tanks and, above all, transport and aircraft, he felt that great savings in personnel could be effected and the present one year military service could be reduced. The President expressed some doubt as to whether this would work out as President Frondizi expected but this did not in any way mean that he was opposed to President Frondizi’s idea. It was merely that more modern equipment required additional training periods. President Frondizi said that when he spoke of more modern equipment he was not speaking of radar and guided missiles. Argentina wanted Armed Forces sufficient for minimal external security and able to ensure complete security within the country. In reply to a question from the President as to whether this modernization would cause misgivings among Argentina’s neighbors, President Frondizi said that Argentina had taken the trouble to improve her relations with her neighbors and he did not anticipate any difficulty on this score. He was taking this problem up with the Pentagon and would appreciate any assistance the President could give.

7. European Trade Groupings—President Frondizi then expressed some concern regarding decisions that might be taken by the European countries of the Common Market and Outer Seven Groups. Argentina had extensive trade relations with some of these countries and was concerned by actions taken by them that might affect Argentina in the world market and he expressed Argentina’s desire to have an observer with these bodies. Replying to a question from the President, he said that Argentina did not have an observer with the OEEC.

8. Refinancing Argentine Short-Term Debt—President Frondizi then said that the Argentines were anxious to refinance their short term debts. They had a number of short term obligations with US public and private agencies which they would like to refinance over a longer period. Recently they had refused a 50 million dollar stabilization loan as they did not need it for this purpose. However, they would like to have assistance in refinancing these short term debts. The President indicated that they might have to pay a somewhat higher rate of interest for this refinancing as interest rates were higher now. President Frondizi said they were quite prepared to do this as they felt their growing self-sufficiency in petroleum would make it easier for them to make these repayments over a longer period.

9. US-Argentine Civil Air Relations—President Frondizi then expressed some concern over commercial air problems existing between the United States and Argentina. Legislation which had been passed prior to his administration limited to some extent the number of passengers US carriers could bring into Argentina from other Latin American areas. This legislation was ardently defended by the present Argentine air authorities. He had talked with Secretary Herter about the financing of additional airports in Argentina because the truth was that if there were no restrictions of any kind, the US carriers would be carrying all the passengers on international lines and the Argentines almost none. But if he could develop these airports he could open up vast new internal areas to the Argentine carriers. The Argentines had sent a negotiation group to Washington where lengthy negotiations had failed to produce any results. He would like to solve this problem. Secretary Herter had told him this problem comes under two separate government agencies in the United States. He would be grateful if the President could pass a cable from one to the other and channel energy through it. The President said he would look into this matter upon his return to the United States.

10. Hoof and Mouth Disease—President Frondizi then said that he had one more request to make of the President and this was that unilateral decisions concerning Argentina not be taken by the United States without consultation with the Argentines. He cited the US prohibition on cured meat being imported from Argentina due to the allegation that Hoof and Mouth Disease existed in Argentina. He understood the United States is right to protect its cattle but the Argentines had been taken completely unaware by the US decision, of which they had had no prior warning at all. The President spoke of the danger of Hoof and Mouth Disease in the United States but expressed concern at the Argentines not having been consulted. President Frondizi said that this had occurred two years ago. The Argentines were making every effort to eradicate Hoof and Mouth Disease and they were working closely with US technicians under the Point Four Program; he added that although they were a democratic country they had appointed a dictator whose sole mission was the eradication of Hoof and Mouth Disease. The President stated that this type of unilateral action would not recur without consultation with the Argentines.

The two Presidents then expressed their deep satisfaction at being thus able to talk over in a pleasant frank way their mutual problems and the conversation was concluded.

1. Source: Department of State, Conference Files: Lot 64 D 559, CF 1596. Secret-Limit Distribution. No drafting information appears on the source text.