Office of the Historian

ETA–1. Memorandum from the Director of the Executive Secretariat (Howe) to the Assistant Secretary of State for Inter-American Affairs (Rubottom) and the Assistant Secretary of State for Economic Affairs (Mann)1

Washington, January 24, 1958

Economic Policies—Latin America

Before he left for the Baghdad Pact Conference,2 the Secretary, in a memorandum on a number of different subjects,3 made the following statement.

“I feel that our economic policies in station to Latin America are too negative. I think we should re-examine our opposition to all trade between Latin America and the Soviet bloc, putting the emphasis rather on means to make that trade safe. Also I think we should re-examine our policy of opposing any stabilizing, or quota, arrangements. I doubt that we are in a good position to withstand in that part of the world a Soviet economic defensive at a time when the demand for raw materials is down and prices are very low.”

Governor Herter would like to have a careful study of this problem promptly undertaken so that as soon as possible recommendations can be put before the Secretary.

Action on the aspects of this problem which relate to financial and commodity problems in Latin America are assigned to E; those relating to the trade relations of Latin America are assigned to ARA. Governor Herter however wants to have the closest possible [Typeset Page 2] coordination in the review of this matter by ARA and E and also in close cooperation with S/P. Mr. Dillon will be overseeing the preparation of work on this matter.

Governor Herter requests from you by Tuesday, January 28, a brief statement of the manner in which you plan to address this problem and the date on which you believe you would expect to have something for the Secretary after appropriate review by other parts of the Department.4

Fisher Howe
  1. Source: Department of State, Rubottom Files, Lot 60 D 553, “Task Force (Latin American Economic Policy Review) 1958.” Secret.↩
  2. The Baghdad Pact Council held its fourth ministerial session in Ankara, Turkey, January 26–30, 1958. Secretary Dulles headed the U.S. observer delegation. For documentation on this subject, see Foreign Relations, 1958–1960, Eastern Europe; Finland; Greece; Turkey, vol. X, part 2, Documents 303–304.↩
  3. Reference is to a memorandum from Secretary Dulles to Under Secretary of State Christian A. Herter and four other principal officers of the Department, dated January 19, 1958. (110.11-DU/2-358)↩
  4. A memorandum from Charles S. Whitehouse, Special Assistant in the Office of the Deputy Under Secretary of State for Economic Affairs, to Assistant Secretaries Rubottom and Mann, dated January 27, reads in part as follows: “I have spoken to Mr. Howe, pointing out that it would be impossible to get a statement to the Under Secretary by Tuesday, January 28, on this subject as Messrs. Mann, Rubottom and Dillon are lunching together on Thursday, the 30th, to discuss this problem. Fisher Howe has agreed, but would appreciate a very brief statement along the lines he requested in the course of Thursday afternoon.” (Rubottom Files, Lot 60 D 553, “Task Force (Latin American Economic Policy Review) 1958”)↩