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

CH–40. Memorandum of Conversation, by the Officer in Charge of Chilean Affairs (Phillips)¹

Washington, September 2, 1960

SUBJECT

• United States Assistance to Chile

PARTICIPANTS

• President Eisenhower
• Chilean Ambassador Walter Muller
• Lt. Col. John Eisenhower
• Robert M. Phillips, ARA/WST

Ambassador Muller said he knew the President was extremely busy and had many preoccupations, but he thought that the President might want to hear something nice and which would not require any action. President Alessandri had asked the Ambassador to deliver a personal letter thanking President Eisenhower, the United States Government and people for the generous assistance given to Chile following the recent earthquakes. With the President’s permission, the Ambassador read aloud the text of President Alessandri’s letter, as follows [in translation prepared by the Chilean Embassy].

“Distinguished President and friend:

“I have the honor to address Your Excellency, interpreting the feelings of deep gratitude of the people and of the Government of Chile, for the generous assistance of that sister nation in the sad emergency produced by the recent seismic disturbances, tidal waves and volcanic eruptions, which have caused deaths and material damages of extraordinary gravity in vast areas of Chilean territory.

“The moral solidarity of your great republic, at a particularly difficult moment of Chilean history, reaffirms our faith in an authentic union among peoples, that will bring realization to the hope for the construction of a better world.

“The very valuable material cooperation that the Government and the people of the United States has given us, has helped effectively to take care of the most urgent needs of the victims of the catastrophe and to then undertake the hard task of reconstruction of the devastated zones.

“Accept, Excellency, the most sincere thanks of the Government and the people of Chile for the very noble attitude of the Government and people of the United States of America, together with the expression of my profound personal gratitude and of my very highest esteem and friendship.

President Eisenhower said he was very glad to receive President Alessandri’s letter and would send a personal note in reply as soon as possible. Meanwhile, he hoped that Ambassador Mueller would inform President Alessandri that he (President Eisenhower) was even gladder to know that the situation in Chile was getting better. We wanted to give all possible help to enable Chile to recover from the disasters, as evidenced by the recent authorization of $100 million in special assistance to Chile.² The President also asked the Ambassador to convey to President Alessandri his particular appreciation for the support we had received from Chile in recent international difficulties, in contrast to the attitude of some weak-kneed countries. Secretary Herter, on returning from Costa Rica, had given him a full account of the effective backing the United States had received from Chile and from other countries, such as Argentina.

Ambassador Muller said he had not known Chilean Foreign Minister Ortúzar well, since he had been acting in this capacity only a few months, and had been pleasantly surprised to find him so effective at the San José meeting. He agreed that the Argentine delegation had been helpful but in a less decisive fashion. Venezuela had found itself in a ridiculous position because Foreign Minister Aroaya was going against his instructions in trying to follow a line he thought would be profitable in terms of domestic politics.

The President said the most incomprehensible aspect of the Cuban situation was the Castro Government’s attitude towards private investment. All the Latin American Presidents and Ambassadors he had known had praised private investment for its contribution towards economic development, a contribution much greater than any governmental aid program could make.

Ambassador Muller said he agreed entirely and cited the encouragement given by Chile to private investment, mentioning particularly United States investments in the copper industry. Cuba’s irresponsible action could harm all of Latin America by frightening off prospective investors who might fear similar developments in other countries.

The Ambassador went on to congratulate the President for his proposed new program of assistance to Latin America. The “social development” proposals recently outlined by Mr. Dillon represented a revolutionary approach to the problems of economic development. Heretofore practically all assistance had been given on a project basis and often did not reach a large part of the people. While the project approach would continue to be a useful device, it was most gratifying to know that assistance could now be given in such important sectors as housing, agrarian reform, public health, schools, etc.

The President said he thought this type of program was the best answer we could make to the aggressive tactics of international Communism, and the Ambassador agreed.

1. Source: Eisenhower Library, Whitman File, DDE Diaries. Official Use Only.
2. On September 8, 1960, at the request of the President, Congress authorized the sum of $500 million for the Inter-American Fund for Social Progress, and in the same bill (H. Doc. 105, 87th Cong., 1st sess.), Congress authorized $100 million for the long-term reconstruction and rehabilitation of those areas of southern Chile devastated by fire and earthquake. Documentation concerning the subject is contained in ARA/WST Files, Lot 63 D 85, “Earthquake.”