CR–18. Telegram from the Secretary of State to the Embassy in Costa Rica1

180. For Ambassador Willauer. Treasury decision United Fruit reallocation profile for tax purposes provides 60–40 division favor [Typeset Page 431] Costa Rica, effective January 1, 1958, informing Echandi this decision:2 (1) strongly recommend he accept ruling as decision made in an equitable and fair manner after careful consideration; (2) stress increase in allocation obtained by strong efforts on part of State and UFCO; and (3) GOCR should deal directly with United Fruit hereafter on this matter. Also, remind Echandi this information being given him through diplomatic channels in accordance Pres. Eisenhower’s letter.

Copy of Decision will be forwarded Embassy as soon as available; sent UFCO Boston yesterday.3

Herter
  1. Source: Department of State, Central Files, 811.05118/12–459. Official Use Only; Niact. Drafted by Taylor and signed by Stewart.
  2. Documentation on Willauer’s informing Echandi of this decision was not found in Department of State files.
  3. A copy of the letter to Baggett from Dana Latham, Commissioner of Internal Revenue, December, 3, is in OAP Files, Lot 64 D 66, “United Fruit Company: Costa Rica, 1959.”