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

ETA–45. Memorandum of Conference With the President, by His Staff Secretary (Goodpaster)¹

Washington, August 1, 1960

OTHERS PRESENT

• Secretaries Herter, Dillon, Anderson, Dr. Ralph Reid, General Goodpaster

Mr. Herter said he first wished to put before the President a memorandum² concerning the proposed Latin American program setting out specific details more fully. The President read through the memorandum. He then asked why the request was being made for $600 million. He had thought that the work of the program might, in large measure, be accomplished through use of the IADB, and that funds would go to expand the capital of the IADB. Mr. Dillon said that the other American countries would prefer not to have this program handled out of normal bank capital if it were handled through the bank, but would keep the money in a special fund. If the money is authorized, this is the kind of specific arrangement that would be worked out through the discussions soon to be initiated.

Mr. Reid said that from the standpoint of the Director of the Bureau of the Budget,³ a simple resolution giving the sense and support of the Congress would be preferable to an authorization. He is concerned over the idea of the Administration submitting new proposals at a time when the Congress has taken actions impairing the President’s FY-1961 budget surplus. Congress has already added about $1.6 billion to the budget. Losses of revenues, together with other costs foreseen, amount to an estimated $2.4 billion, bringing the total to about $4 billion out of an anticipated $4.2 billion surplus. He pointed out that the $600 million figure is no more than a guess, and will be very hard to justify before the Congress, lacking any documentation. He added that the Development Loan Fund has available substantial authorizations for which appropriations have not been sought. Mr. Dillon commented that he is not proposing that the Administration ask for appropriations at this time, but rather limit its request to an authorization.

Secretary Anderson said he would prefer not to have a special Presidential message. He suggested that the State Department try to have this provision tacked on to a pending bill. The President suggested the possibility that he might send a letter to the State Department instructing them to seek to do that. He commented that the Vice President, however, has asked the President to send up a message to the Congress on the reconvening of the Senate in order to take effective initiative. Also, by a special message at that time he hopes to do something to hold the Congress to hard essentials as against many loose pending schemes that are being discussed. Mr. Anderson said he thought it very important not to send up new requests to this Congress, but to limit the message to repeating what the Administration has already asked for. Referring to an earlier point, Mr. Herter said that a check had been made to see whether there is pending legislation to which the proposal might be attached, and that there is none.

Mr. Dillon said he would like to consult with the Congress about the proposal, and suggested that the State Department proceed to check with key members. The President indicated no objection. The President then said he thought he would mention the Latin American program in a specific way in his message,⁴ and leave the development of details until after he had met with the bi-partisan group.

[Here follows discussion of issues related to the Congo, Tri–Partite Arrangements, Arms Sales to NATO Allies, and Nigeria.]

1. Source: Eisenhower Library, Whitman Files, DDE Diaries. Secret. This memorandum was prepared on August 10.
2. See Document ETA–44.
3. Maurice H. Stans.
4. See the editorial note, Document ETA–47.