ETA–36. Notes of Telephone Conversation between the Under Secretary of State (Dillon) and the Assistant Secretary of State for Economic Affairs (Mann)1
CDD said he wanted Mann to be sure he was clear in preparing the new program on Latin America. He said he had told Mr. Achilles that he thought Mr. Mann was the fellow who ought to take a hold of it. CDD said he agreed with Mr. Mann that it ought to be big enough, about $500,000,000, and should include Chilean reconstruction as a separate piece of the package of about $150,000,000. CDD said he didn’t know whether there is any other place that we can use grants - the rest of it is going for loans to the Inter-American Bank. He said it would require a bit of talking with the Bank and that we have had trouble with the Treasury on the size. CDD said that he was going to talk it over with the Secretary and that he would back him up on this thing. He said that because of the strong statement made by the President we have got to come up with something. He told Mann he hoped he could push the thing along. He mentioned that in the Inter-American Bank we have veto power. Mann asked if we are still thinking about the fund being at the U.S. end of this and CDD replied-yes. Mr. Mann commented that then we could use the veto power and don’t have to worry about DLF. Mr. Mann said we should stick hard on the soft loan and CDD replied yes. CDD said that Mann would have to take it on and that Jack Bell would help him.
- Source: Department of State, Secretary’s Memoranda of Conversations, Lot 64 D 199. Limited Official Use. The conversation recorded here took place at 12:50 p.m.↩