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

220. Memorandum From the Secretary of State to the President¹

Washington, September 2, 1960.

SUBJECT

• Letter on Additional Financial Assistance from President Frondizi of Argentina

It has become increasingly evident to the Department that the Argentine Government would be requesting additional financial assistance from us in continuation of the support which we have been giving them since the inception of their stabilization program. President Frondizi has been laboring under heavy domestic political pressure with regard to this program, and this is reflected in his recent communication to you, which indicates some misunderstanding of our efforts to date, our attitudes, and our procedures.

We do have a continuing policy interest in the success of the Frondizi Government’s constructive economic program. There is interagency agreement that something should and can be done to provide further assistance in one of the specific fields in which the Argentine President asks immediate aid, that of highway construction, on the basis of examination of specific proposals to be presented by the Argentine Government.

Enclosed for your consideration is a suggested reply to President Frondizi which indicates a favorable view on continuing financial assistance and invites further discussions and the submission of specific Argentine proposals.² It also states that Secretary of Agriculture Benson will be available to discuss United States agricultural commodity policies and measures, to which President Frondizi referred unfavorably in his communication, during the course of a South American trip which Mr. Benson plans to take in October. I have discussed this with Mr. Benson and he concurs.

Since the tone of the suggested reply is friendly and affirmative, I do not believe that it would serve a really useful purpose for you to take specific issue with President Frondizi’s unfavorable comments. Steps to correct his misunderstandings were taken during a recent exchange of views between him and our Chargé d’Affaires in Buenos Aires. If you sign the suggested reply, it could be transmitted through our Chargé in Buenos Aires. It is recommended that this message, if approved, be released only on the initiative of President Frondizi.

Christian A. Herter

1. Source: Eisenhower Library, Whitman File, International File. Confidential. A notation on the source text, in Eisenhower’s hand, indicates that the President approved the memorandum. Another notation on the source text, initialed by Goodpaster, indicates that the Department of State had been informed of the President’s approval on September 7.
2. Not printed.