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

ETA–33. Memorandum from the Assistant Secretary of State for Policy Planning (Smith) to the Acting Secretary of State¹

Washington, July 5, 1960

SUBJECT

• Possible New Initiative to Reflect President Eisenhower’s Concerns Expressed at the NSC meeting on June 30, 1960.²

There is attached a rough draft describing a possible political initiative which I believe reflects the President’s mood as stated in the NSC last week.

To my mind, the most important thrust of such a move should be to compensate for moves which may have to be taken against Castro.

I talked with Secretary Herter about this paper last Friday and he said that he had mentioned to the President that we were working on some such program. He felt that the President might like to have a look at our efforts before taking off for Newport. (Tab A)

I mentioned this matter to Livie Merchant and Dick Rubottom last week and I am sending copies of the attachment to them. Copies are also giving to G, C, E and U/MSC.³

If you think this warrants further development, S/P will be glad to participate.

Gerard C. Smith

Attachment - Tab A

Memorandum by the Assistant Secretary of State for Policy Planning (Smith)⁴

Washington, July 5, 1960

SUBJECT

• Proposed New Initiative: “Stability Through Change”

1. There is need for a dramatic new initiative to refurbish U.S. leadership in the free world.

Before May we were leading our allies in a major effort to engage the USSR in negotiations. Our purpose was clear, and our leadership was accepted. The collapse of the Summit and of the disarmament negotiations ended that effort and set this purpose to one side.

Since then no new purpose of U.S. leadership has been defined with the same emphasis. As a result, the impression has gained ground that our leadership is lagging, that our policy is in a phase of drift.

To exercise leadership, we must lead toward something. That “something” should be to strengthen the free world, by enlarging the rewards and opportunities open to free men everywhere.

A specific action is needed to define and dramatize that goal - an action which will be significant both in itself and as a symbol of further effort to come; an action which will capture men’s imagination and mark the road we intend to travel in the period ahead.

2. The situation in Latin-America creates an occasion for just such action.

This area is passing through rapid social change. Dictatorships and oligarchies which sought to repress this change are falling by the wayside. In their place, two groups are contesting for leadership of the continent:

Moderate groups, which seek to carry out needed reforms through orderly methods.

Extremist groups, led and symbolized by the Castro government, whose policies seem designed ultimately to detach Latin America from the free world.

The most effective way we can intervene in this contest is by helping the moderate groups’ programs to succeed. This means extending help for such varied purposes as more schools, better paid teachers, housing, land reform and land clearance projects.

Substantial U.S. help for these purposes will be the more needed if we are forced to move against Castro. Adverse reactions may be lessened if we can then hold out a promising alternative to Castroism.

3. The August session of the Congress provides an opportunity to create that alternative.

It had been intended to request extra funds for the Special Fund of the Inter-American Bank in the next budget and to announce this at the meeting of the Committee of Twenty One in Bogotá.

Why not make the request when the Congress reconvenes—perhaps in a substantially larger amount than presently contemplated? Such a request might well receive the support of both candidates and parties. It would permit us to channel the concerns which Castroism generates in the U.S. in a constructive direction. It would enable us to exploit the coming session for an affirmative foreign policy purpose.

The action could be taken—like the original Congressional contribution to the Inter-American Bank in September 1959 - wholly apart from the Mutual Security Program, it need not interfere with Congressional consideration of that Program.

4. This action could have world-wide impact and implications.

In presenting this request to the Congress, we could emphasize the growing need for “social infrastructure” assistance—not only in Latin America, where we faced a particularly urgent problem, but elsewhere.

We could suggest that future Mutual Security Programs would be geared increasingly to this need.

Our Latin American request could thus symbolize the “nation building” goal that the U.S. set for itself in the period ahead.

This goal might be further dramatized in a major Presidential address to the General Assembly this fall.

The President could recall his trips to Asia and Latin America, and cite the first-hand evidence which moved him to propose increasing aid for such purposes as housing, health, agricultural, and education programs. He could call on all countries—large and small—to take action to this end: bilaterally and through existing multilateral instruments. He could announce that he would recommend enlarged U.S. programs along these lines to his successor.

5. This course of action could be a triple play.

(a) It would do much in Latin America to contain the appeal of Castroism and to offset the adverse effects of any U.S. action against Castro.

(b) It would regain the initiative for the free world in this post-Summit lull, by directing free men’s efforts to a new and constructive goal instead of to brooding about Communist pressures and proposals.

(c) It would enhance world-wide respect for U.S. leadership, by dramatizing our support of groups and programs which are designed to improve the lot of the common man and thus to enhance “stability through change”.⁵

[Here follows as outline for a Presidential message to Congress concerning a new initiative for Latin America.]

1. Source: Department of State, PPS Files, Lot 67 D 548, “American Republics 1960–1961.” Confidential.
2. At the 449th meeting of the NSC on June 30, President Eisenhower expressed his concern about conditions causing social unrest and political instability in many Free World nations, including several in Latin America, and the apparent inability of the United States, in spite of its aid programs, to achieve stability throughout the world. The memorandum of discussion of that meeting, prepared by Marion W. Boggs, reads in part as follows: “The President then said he realized that an immediate answer to the problem would not come out of this exchange of views. He felt that some concentrated thinking was called for, however, and that changes in policy should receive serious consideration. He was especially concerned with the situation in Cuba, at our backdoor.” (Memorandum of Discussion at the 449th Meeting of the NSC, June 30, 1960, Eisenhower Library, Whitman File, NSC Records)
3. The source text bears the following hand-written marginal notation by Smith, dated July 7: “I gave copy of attachment to V.P. Nixon with Dillon’s OK after NSC mtg.” Reference is to the 450th NSC meeting, held on July 7.
4. Confidential.
5. In a memorandum to Smith, dated July 6, Rubottom stated in part the following: “I will stand with you 100 percent on this recommendation and I believe the NACOIAA will do likewise. At an appropriate occasion today I will tell Mr. Dillon something of my supporting views.” He also informed Smith that ARA had set in motion a specific planning effort, and that the two would fully coincide. (PPS Files, Lot 67 D 548, “American Republics 1960–1961”)