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

ES–2. Summary of Discussions during Milton Eisenhower’s Visit to El Salvador, July 27–30, 1958¹

Undated.

Discussions in El Salvador were held by Dr. Eisenhower and members of his party with President Lemus, members of the Government, businessmen, labor leaders, and others. No formal meeting other than the meeting with businessmen was held as such. President Lemus and Dr. Eisenhower traveled extensively together and discussed many subjects.

President Lemus said that his administration was based on two principles: honesty in Government and better living conditions. He stated that neither he nor any of his Ministers were dipping into the public coffers. He could not say that Government officials might not try to do so in the future, but anyone who did would go to jail. The President expressed his feeling that the three biggest problems in El Salvador were housing, education, and public health, and he felt these really had to be considered as one single problem. His administration had undertaken a bold program to solve these problems, but they had not expected the world economic recession, with the consequent drop in commodity prices, and they hoped some way could be found to enable them to go forward with this program. The administration planned the construction of 2,000 more schools, and since his inauguration 40,000 additional children had been enrolled in the schools. The president said it was necessary to fight communism by accomplishments. The communists promised but did not fulfil their promises. They had ruled Guatemala for ten years but they had achieved nothing. However, in order to deprive them of arguments they could use, it was necessary to improve the living conditions of the masses. In addition to the Government’s bold housing program, it would likewise be necessary for the big landholders to build homes for their tenant farmers. A very few had done so, but not many. The Government was going to press them to do so and if they still did not the Government would find means to compel them to undertake programs of this type either by passing a law, or else by making it possible for them to deduct some part of the cost of construction of these workers’ homes from their taxes.

The President on several occasions said tribute to the great assistance which the United States had rendered to El Salvador, particularly in the field of technical cooperation. He indicated a need for help at the agricultural school but at no time did he or any other Salvadoran official mention specific sums or loans, other than to say that they hoped to be able to go forward with their housing, education, and public health programs. The President spoke with feelings of the hardships caused in El Salvador by the drop in world coffee prices. He did not, however, as was frequently the case elsewhere, believe that the United States could correct this situation by some arbitrary action.

The President indicated that he strongly favored the union of Central American states as a means of providing all the countries of the area with a broader market for the free government of labor and goods. This would contribute to raising the living standard of the inhabitants of all those countries. He spoke also of the problem of over-population in El Salvador where 2.5 million people occupy some 8,000 square miles.

President Lemus expressed violent opposition to communism in any form, and the need for the free world nations to unite their forces against this threat to human liberty. The President expressed interest in the matter of controlling the moves of communist agents in Central America. He said that the Salvadorans had been very vigilant during the period of communist rule in Guatemala and that this vigilance was still required. The Commandant of the Military Academy, during the ceremonies at which Dr. Eisenhower presented a United States flag to the Academy, spoke words of praise for NATO and said that the nations of the hemisphere should stand with this organization in defense of world peace.

President Lemus, speaking of President Luis Somoza of Nicaragua, said he believed that President Somoza was an honest man and that he intended to implement his announced decision to return the country to a more democratic way of life. However, he was faced with vested interests and duress that made it difficult for him to make radical changes in the policies of his father. President Lemus also stated his belief that President Somoza intended to pursue a more cooperative and friendly policy toward the other countries of Central America. He expressed his belief in President Somoza’s sincerity and said that it would be difficult for the Nicaraguan President to make changes quickly but he had no doubt that he would make these changes. He said that he would sum up his opinion of President Somoza by saying that he was a sincere, honest, and upright man.

The President expressed great concern with the lot of rural workers in El Salvador, and expressed determination to do something for them under his Campesino Program.

The President on a number of occasions spoke of how much he was looking forward to his visit to the United States early next year. The President also spoke with satisfaction of the recent agreement between the Central American countries which eliminated the need for visas.

A group of non-communist labor leaders also spoke to Dr. Eisenhower and Assistant Secretary Rubottom at some length. They spoke out sharply against the attitude of the big landowners whose greed in their opinion fed grist to the communist mill. They said that if the big plantation owners and landowners would only be a little more human now they might save themselves trouble in the future. They spoke feelingly of the low wages paid the workers on the land, and the great disparity of wealth and poverty in the country. They seemed to feel that in some way the United States might bring some sort of pressure to bear on the landowners to pursue a more liberal policy.

The presence of sixteen graduates of Johns Hopkins University highlighted further the close cultural connection between El Salvador and the United States. At the meeting with the businessmen at the Embassy, no translation was required as all of those present spoke English.

Unlike other Central American countries, no specific program was submitted, nor were specific requests for assistance made.² A general expression of need for assistance was made in the three fields referred to previously of housing, education, and health. The President spoke of his desire to complete the Acajutla Port Project.

The Salvadorans in a note, now almost a year old, have asked the United States Government for a loan of $8 million,³ but they have never come up with any concrete projects for the rural improvement program in which Lemus appears so interested. We have on several occasions, without result so far, informally explained that before consideration can be given to their loan application, they must provide us with a detailed explanation of their plans for using the money. Without having their explanations, we now believe the DLF would be the only agency that could make such a loan to them, and we doubt present DLF policies would permit it to make such a loan.

CONCLUSIONS:—In view of the fact that no specific program was presented in El Salvador, it is difficult to comment in a detailed fashion, but it appears that some of the factors mentioned in connection with other countries of the area would hold true in this country. These are:

(a) The need for an inventory of the nation’s assets, both human and material;

(b) The need for assistance in determining the feasibility of establishing new industrial enterprises and diversifying agricultural production;

(c) An analysis and appraisal of the potentials of domestic and foreign markets, and a better understanding of the revenues that might be derived from tourism, and

An examination of the structures and functions of Government agencies relating to the economic development of the country and an appraisal of the financial, tax, and trade policies which might best contribute to the nation’s progress.

1. Source: Department of State, ARA Special Assistant’s Files, Lot 60 D 513, “Eisenhower, Milton: El Salvador, 1958.” Confidential. The source text is an unsigned carbon copy. President Milton S. Eisenhower of Johns Hopkins University made a three-week fact-finding trip, July 12–August 1, 1959, as personal representative of the President, to Panama, Honduras, Costa Rica, Nicaragua, El Salvador, and Guatemala. He was accompanied by Roy R. Rubottom, Jr., Assistant Secretary of State for Inter-American Affairs; Tom B. Coughran, Assistant Secretary of the Treasury; Dempster McIntosh, Manager, Development Loan Fund; and Samuel C. Waugh, President, Export-Import Bank of Washington. For further documentation on the trip, see Documents ETA–7; CO–1; CR–6–9; ES–2, 5–6; GT–8, 24; HO–3; NI–4, 7–9; PM–3; PA–7. Despatch 55 from San Salvador, August 11, 1958, transmitted memoranda of conversations of the Eisenhower mission in El Salvador. (120.1520/8–1158) Despatch 83 from San Salvador, August 26, 1958, supplemented despatch 55 with a report on Eisenhower’s visit to El Salvador. (120.1520/8–2658) For Milton Eisenhower’s report to the President, December 27, 1958, see the Department of State Bulletin, January 19, 1958, p. 89.
2. At a meeting between members of Eisenhower’s mission and Salvadoran Government officials in San Salvador, July 28, 1958, concerning economic matters, Antonio Serrano Langlois, Salvadoran Under Secretary of Economy, distributed a memorandum of proposed development projects of the Salvadoran Government. He said the program required $191 million, including $84 million from his Government and $107 million in foreign aid. (Memorandum of conversation by W. Douglas McLain, Jr., Third Secretary of the Embassy in El Salvador; enclosure 1 to despatch 55 from San Salvador, August 11, 1958; 120.1520/8–1158)
3. Reference is to a memorandum from the Salvadoran Embassy to the Department of State, October 2, 1957. (816.10/10–257)