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

EC–5. Summary of Conversation between Vice President Richard M. Nixon and President Camilo Ponce Enríquez of Ecuador¹

Quito, May 9, 1958

President Ponce stated that Ecuador’s principal problem was that of raising the living standards of the people. He felt that this could best be done by private investment, which Ecuador favors and will encourage. He also proposed that there be a special inter-American meeting on economic matters.

Vice President Nixon replied that the observations he had made on his trip to date led him to agree with President Ponce that raising living standards was Latin America’s No. 1 problem. To achieve this, he said, economic relations among the people of this hemisphere must be close. He complimented President Ponce on having established a climate of political stability, which attracts private capital. He said that although he feels that private enterprise is the best means of combating Latin America’s economic problems, this fact must be demonstrated to the peoples of Latin America. Political freedom and private enterprise must be used in the general welfare. President Ponce’s record in this respect is good, and there are no great problems between Ecuador and the U.S.

President Ponce commented that the economies of Latin America, which are based on production of raw materials, suffer greatly when prices of these materials go down. He reiterated his proposal that a special Inter-American conference be called to deal with this type of problem. He felt that such a conference should be in preparation for the 11th Inter-American Conference, so that subjects discussed at the latter would be clear and would have been given a lot of prior thought. He felt that Ministers of Economy should attend this preparatory conference, that it should be held as soon as possible, and that it should discuss matters of the type that Vice President Nixon had observed on his trip so far.

Vice President Nixon endorsed President Ponce’s proposal, but stressed the desirability of the conference being on an informal basis - that it be neither too rigid nor too dramatic. He felt that it could be of considerable help in solving problems of the hemisphere.

President Ponce accepted Vice President Nixon’s suggestion concerning the informal nature of the Conference, saying that what he had in mind was a “round table” type of meeting. He thought that such a conference should try to find long-range solutions for economic and social problems. For example, he thought that it might try to do something about helping to create a middle class in Ecuador, which the country badly needs and which would also benefit the U.S. by providing it with more customers.

Vice President Nixon reiterated the importance of solving Latin America’s economic problems, which in turn would make it easier to deal with political problems. He said the leaders in the hemisphere must redouble their efforts along these lines.

1. Source: Department of State, Central Files, 033.1100/6–2058. Official Use Only. This summary was transmitted to the Department of State under cover of despatch 799 from Quito, June 20. That despatch also enclosed a summary of Vice President Nixon’s conversation at Quito Central University on May 10.