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

HO–10. Despatch from the Ambassador in Honduras (Newbegin) to the Department of State¹

No. 129.

Tegucigalpa, September 25, 1959

Attn: The Honorable C. Douglas Dillon, Coordinator of Mutual Security

REF: Circ. 149, 8/19/59²; Circ. 58, 7/24/56³; Circ. 1043, 5/5/58⁴.

SUBJECT

• Mutual Security and Related Programs

Pursuant to the instructions contained in Circular 149, dated August 19, 1959, the following comments are offered as to U.S. objectives in Honduras, and the role of the MSP and other programs in achieving them.

The basic objectives of U.S. policy in Honduras have not changed since the submission of the ICA Master Program Book in August 1958.⁵ At that time they were stated in the following terms:

1) Promote political stability and develop democratic and representative institutions;

2) Promote the sound development and expansion of the Honduran economy, with emphasis to the extent possible on private enterprise;

3) Eliminate and prevent Communist penetration and influence;

4) Strengthen inter-American relationships with a view to improving the security system of the Western Hemisphere.

All agencies of the U.S. Government which are represented in Honduras are working toward the realization of one or more of these objectives, each in the manner dictated by its own authority and capacities.

The U.S. Embassy, as the principal instrument of U.S. policy in Honduras, works through normal diplomatic channels and its activities are necessarily limited to indirect influence except where U.S. interests are immediately concerned. The Ambassador coordinates the program of the various U.S. agencies from a policy standpoint, but, normally, does not interfere with their specific operations. The Country Team principle has been observed for some time in Honduras; representatives of the ICA (USOM), Army Mission, and the USIS attend the regular weekly Embassy staff meetings, as well as specific conferences called to establish Country Team policy, or a unified approach to a particular problem. The Country Team this year includes one member having the dual capacity of D/USOM and Counselor of Embassy for Economic Affairs⁶, thus insuring a more closely coordinated policy Advisory group.

The U.S. Army and Air Force Missions in Honduras, through the Military Assistance Program, are working especially toward the achievement of the Objective (4), referring to the improvement of the hemisphere security system. These Missions are relatively small. Their continuation in Honduras depends principally on regional factors and Department of Defense determination as to their necessity. The Embassy has recently received a formal request from the Honduran Government for an Advisor to the Military School and an informal request for an Advisor to the First Battalion. The Embassy has strongly supported the former. The latter is still in the preliminary stages. It is assumed that these two Advisors would be under the general jurisdiction of the Military Mission. This, together with the furnishing of personnel for the Engineering Construction Unit described below under the Military Security Program, is the full extent of any increase that is contemplated. Apart from this, I do not personally recommend any further expansion of the activities of the Missions.

By means of its program of news dissemination, the U.S. Information Service contributes toward all four of the objectives stated above. The same may be said of the cultural and educational exchange programs, which it administers in the field. These programs are extremely important for Honduras and, in fact, deserve far greater emphasis and support than they have received in the past year. For several months the USIS in Honduras has been represented by one U.S.-assigned officer, who has had far too great a work load to handle without assistance. Apart from the serious staffing weakness of the USIS itself, the bilateral cultural center has been without a U.S. director for nearly a year. (This position has just been filled.)

In terms of money spent, personnel employed, and direct influence on the achievement of the above objectives, the U.S. Operations Mission, through its administration of the Mutual Security Program, is of special importance. It should be noted that the technical assistance part of this program has existed in some form in Honduras since 1942, although the major part of the ICA activity dates from 1951. In recent years there have been certain large-scale loans and grants from Special Assistance funds, but the backbone of the MSP in Honduras continues to be technical cooperation, and it is by this aspect that the agency is best known. It may be said that although the USOM, through one or more of its projects, attempts to realize all four of the major U.S. objectives, through its emphasis on technical cooperation it is especially effective with respect to Objective 2, the development of a strong and expanding national economy.

The MSP in Honduras in the past has tended to follow the traditional lines of this program in Latin America, with emphasis on the major fields of agriculture, public health, and education. Certainly these activities are basic in Honduras, which needs help to realize its legitimate aspirations for a better standard of living and higher level of culture. I feel strongly convinced that a much greater emphasis should be given to assistance in basic education. The illiteracy rate in Honduras is very high and the level of education of those who are literate is extremely low. The manpower requirements, not only for mutual programs but for normal national activities, are impossible to meet from present human resources. This appears to be the priority problem in Honduras, and this conclusion is reflected in the 1959 and 1960 Program submissions, which include a program for the building of school rooms under the “aided self-help” system. Whereas this is a worthwhile effort and will coordinate well with the teacher education project, it is my opinion that it will be long range in its expected effects and will not be of sufficient impact to solve the problem. I have hopes that a more effective and immediate solution can be found for this grave situation, possibly a solution which will include adult education programs on a very broad scale. Incidentally, in order to achieve the greatest flexibility in the “aided self-help school program, I hope it can be approved in the category of Special Assistance rather than Technical Cooperation.

There are other problems, however, which should be recognized if gains are to be consolidated, and if the country is to develop continuing institutions which will help it to help itself. I refer specifically to the development of a better public administration and a tradition of good government, and also to the activation of private enterprise to permit sound development of the national economy. The USOM, which has had a large scale turnover of personnel in the last year or two, has been in the process of re-evaluating its program, and I am pleased to note that the above problems have been recognized in its current budget submission; the program for FY 1961 calls for a somewhat broader approach than before in the field of public administration, and there is a proposed industrial development project which has for its purpose the training of managerial skills and increase in industrial productivity. Both of these activities are small scale, which I believe is appropriate at this stage, until there has been more experience in local conditions. In the case of the industry project, one of the conditions to be observed is the effect of the recently adopted Labor Code, which may have an inhibiting effect on both new and existing industrial enterprise.

A related project which has been rather successful in the past, and which will continue, is the training of labor leaders. Selected trade union officials have been sent to Puerto Rico and the United States for observation and training in the responsibilities and obligations of democratic labor leadership. This has been supplemented in the past two years by labor training seminars for leaders at a somewhat lower level, given to larger groups within Honduras. It is considered that these activities have been very helpful in combating Communist attempts to dominate the unions, and have resulted in more responsible trade union leadership and improved labor management relations. The project will be continued in FY 1961, but on a smaller scale than previously.

In the field of agriculture, no major changes in program are foreseen, although the USOM in recent months has been making a concentrated effort to improve the efficiency of its operations in this field and to eliminate activities which are found to be no longer necessary or practicable. One new project has been proposed for FY 1961, a program of technical assistance in warehousing and marketing for farmers.

Public Health requirements in Honduras are very great. In terms of human needs, as well as impact on public opinion, the MSP health programs are extremely important.

In the past, this program has been directed largely toward the building of community water supply and sewage projects and environmental sanitation, in general. The largest single element of the program is currently the malaria eradication campaign, which is part of a regional, and indeed a world-wide campaign, to eliminate the disease. Honduras is cooperating very satisfactorily in the technical aspects of this program, though unable to contribute financially to any significant extent.

The USOM, through the Health Services, has carried out numerous engineering projects, which included the use of $1.25 million Smather’s Loan Funds for community water supplies, which are nearing completion. These projects have been conducted without sufficient supervision, with the consequent errors and dangers to U.S. prestige. Strong corrective measures are now being taken, and, upon completion of these jobs, USOM will turn its attention away from this type of work and place more emphasis on health education and training, on the development of health centers, and on the creation of an adequately-trained nursing profession.

The MSP in Honduras also embraces projects in the field of transportation, both air and ground. The development of Honduras has been seriously handicapped by the mountainous terrain, and the majority of the towns and communities are relatively isolated, being served only by trails, unimproved roads, or light planes. A civil aviation project has been in existence for some years, providing technical assistance to the national civil air agency; with the use of the USOM air personnel it has also been possible to establish an electronics training program and a regional flight information center serving all of Central America. These activities are continued in FY 1961 and are related to a regional ICAO air traffic control program supported by all of the Central American Republics and making use of the Tegucigalpa Training Center facilities, which were established with ICA help.

In recent years Honduras has received considerable financial assistance for economic stabilization and public works. In January 1959 Honduras obtained a standby loan for $4.5 million from the IMF for currency stabilization and is complying with stipulations covering governmental fiscal management practices.

In addition to its participation in the Pan American Highway project, for which it has received an Eximbank loan for $1.7 million, Honduras has obtained approval for a total of loans from IBRD for road construction and maintenance of $13.7 million, all obtained since December 1955. The DLF, in 1959, approved a loan of $5.0 million to cover local currency costs on IBRD-financed projects and is considering new requests for the same purposes amounting to $9.0 million. The recently created Engineering Construction Unit, an ICA-financed project, will receive a total of $1.0 million in grant aid, which will be matched by an equivalent amount in local currency, to be contributed by the GOH. Continuing projects financed with $3.0 million of Smather’s Loan funds (the major portion of which has already been used) consist of a road building program in the Guayape Valley and a program to provide public water supplies to villages. This latter is mentioned under the remarks on the Health Program.

Technical assistance has been provided by the U.S. Bureau of Public Roads and by private U.S. construction companies, as well as by ICA technicians in these projects.

It is apparent that Honduras is in great need of roads and that these projects will be of direct and immediate benefit to the national economy. It is my opinion, however, that to insure an efficient and completely satisfactory performance in the construction of roads to be financed with U.S. financial assistance, it would be advisable to negotiate the work by contract to reliable engineering firms, thus avoiding numerous serious drawbacks, which have been evident in the performance of the Ministry of Public Works of the GOH.

The FY 1961 Mutual Security Program does not contemplate additional funding for the Engineering Construction Unit, except for a limited amount of Technical Cooperation funds to backstop U.S. participation in the operational phase of this project. Even this participation by the USOM could be eliminated, or greatly reduced, at this stage, if adequate technical support were provided by the Department of Defense.

With respect to the ECU operation, I have certain reservations, although I agree with the basic objective. Undoubtedly, the purpose of utilizing military personnel to perform useful civilian work is appealing and, if successful, could have favorable effects on the internal political climate, as well as on the economy. My reservations may be expressed as follows:

A full and satisfactory operation of the ECU unit might reduce the military potential of the Armed Forces below the point of safety at a time when it is evident that the influence of the military is essential to insure the security of the present constitutional regime. The maintenance and operational expenses of heavy machinery are a burden which the GOH, and particularly the Army, are not in a position to meet without severe sacrifice. There is insufficient trained personnel to meet the managerial and technical requirements of this operation. In short, the project is a difficult one, and in case of incomplete success, U.S. prestige will be involved. I therefore expect that the DOD and ICA will give immediate favorable attention to the recent requests for manpower for this operation.

With respect to coordination between U.S. agencies and non-U.S. programs in the achievement of common objectives, the following observations may be made. In the field of credit and other economic policies, there has been good coordination with the local representative of the IBRD, and, through him, with the other international lending agencies. Cooperation with the Development Loan Fund has been less effective because of lack of information and clearly defined responsibility as to its activities in the field. Both CARE and UNICEF are active in Honduras, and there are no complaints as to coordination. Relations with WHO/PAHO in public health have been excellent. FAO generally works well with the agricultural division of USOM. Certain basic differences in philosophy and approach have been noted between UNESCO and the educational division of the USOM, although there has been recent improvement in relationships. UNTAA activity has been confined to public administration and social welfare; the USOM has no activities in the latter field, and, in public administration, the projects of the two agencies thus far have been complementary.

The welfare agencies food programs are now being carefully controlled for efficient operation, after a period of rather loose management. During the last two years UNICEF was responsible for the loss of over 90 tons of dried milk due to incorrect handling. USOM is now instituting a close surveillance of this program, as well as the CARE program, which has been operating successfully under its own supervisory personnel.

A commentary of this nature would be incomplete without some general remarks on the problems of obtaining satisfactory cooperation from the host country. Honduras has a history of political instability. Changes of Government have been very frequent, and, of course, there is nothing resembling a civil service system. Under these circumstances, national agencies and institutions are notorious for their changes of personnel.

Top and middle-level officers of the Government have characteristically been solidly behind U.S. efforts to improve local conditions through cooperative efforts. This is true of all political parties. They frankly recognize the usefulness of aid, as well as the instability of their own institutions. The result of this situation is that such activities as are carried on by the Servicios tend to become permanent through lack of a host institution which can take them over.

In an attempt to break this state of only partially satisfactory equilibrium, the D/USOM will study possible methods of guaranteeing successful turnover of projects which are ripe for delivery and are operating successfully. The present outlook is far from favorable for such action, but it is felt that at least some intelligent trials should be made. The principal difficulty will be to keep trained personnel from being replaced by political favorites without qualifications.

As stated above, Country Team coordination has been greatly improved, and I believe this improvement is due in considerable measure to the designation of the D/USOM as Economic Counselor. The incumbent himself feels that at this time, and with present personnel, he is unable to delegate USOM operational responsibilities without danger to those operations, and is, therefore, not fully complying with the requirements of both positions. Since the Embassy Economic Section is staffed with experienced officers, a great degree of accommodation has been possible, and I feel that for the present it will be possible to operate successfully.

Robert Newbegin

1. Source: Department of State, Central Files, 715.5-MSP/9–2559. Official Use Only. Drafted by Carson, Director of the United States Operations Mission in Honduras.
2. The Department of State, in telegram Circ. 149, August 19, 1959, requested the recipients of this message to furnish succinct, analyses of how the Mutual Security and related programs could help the United States achieve its objectives in countries such as Honduras. (120.171/8–1959)
3. The Department of State, in telegram Circ. 58, July 24, 1956, informed Chiefs of Mission that the President expected them to provide leadership and to exercise responsibility for the effective coordination of various United States activities in each country enjoying diplomatic relations with the United States. Specifically, the Chiefs of Mission were responsible for administering and supervising the Mutual Security, agricultural, informational, and other related programs. (120.171/7–2456)
4. The Department of State, in telegram 1043, May 5, 1958, provided Chiefs of Mission with guidelines for the proper development of estimates for the FY 1960 Mutual Security and related programs. (120.171/5–558)
5. In desp. 37 from Tegucigalpa, August 1, 1958, Ambassador Newbegin informed C. Douglas Dillon, the Under Secretary of State for Economic Affairs, that the United States Operations Mission in Honduras was transmitting the Master Program Book to him via ICA channels. No copy of the Master Program Book has been found in Department of State files.
6. Carson O. Crocker.