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

ETA–39. Memorandum from the Secretary of State to the Assistant Secretary of State for Inter-American Affairs (Rubottom) and the Assistant Secretary of State for Economic Affairs (Mann)¹

Washington, July 20, 1960

I raised with the President yesterday the question of [illegible in the original] having made a definite commitment to Secretary Anderson that [illegible in the original] new funds would be asked for at the coming session of Congress to implement his new proposals with respect to Latin American development. I pointed out that we were very disturbed that such a firm commitment had been made since this would again open us up to the possible criticism that we had made a vague recommendation but had not followed it up with something specific.

The President assured me that no definite commitment had been made. He said that he had discussed with Secretary Anderson the [illegible in the original] of increasing the Development Loan Fund appropriation, with specific [illegible in the original] for Latin America, as well as [illegible in the original] soft loan component of the Inter-American Bank. [illegible in the original] said that [illegible in the original] raise with Secretary Anderson that another [illegible in the original] should not be set up with a very large sum of money, such as [illegible in the original] million, earmarked for it.

It was [illegible in the original] from this conversation [illegible in the original] we should go ahead with our [illegible in the original] method of handling this matter, with a view to [illegible in the original] recommendations to the President.²

Christian A. Herter

1. Source: Department of State, PPS Files, Lot 67 D 543, “American Republics 1960–1961.” Secret. Drafted by Herter.
2. A hand-written note from Ramsey to Smith, dated July 21, attached to the source text reads as follows: “You will want to see this good news. I’ve sent copy to Achilles.”