Office of the Historian

NI–18. Memorandum of Conversation, by the Officer in Charge of Nicaraguan Affairs (Taylor)1

Washington, October 5, 1959

SUBJECT

  • NICARAGUA: Visit of Ambassador Sevilla-Sacasa

PARTICIPANTS

  • His Excellency Dr. Guillermo Sevilla-Sacasa, Ambassador of Nicaragua
  • Assistant Secretary R. R. Rubottom Jr.
  • Dr. Juan Lugo Marenco, Minister of Economy
  • Dr. Francisco Lainez, Manager of Nicaraguan National Bank
  • Dr. Enrique Delgado, Former Minister of Economy
  • Mr. Ricardo Parrales, Commercial Attaché, Nicaraguan Embassy
  • Mr. Henry L. Taylor, OAP/N, Officer in Charge, Nicaraguan Affairs

Ambassador Sevilla-Sacasa stated that the purpose of his call was to introduce Nicaragua’s new Minister of Economy, Dr. Juan Jose Lugo Marenco, and the new Manager of the National Bank, Dr. Francisco Lainez, [Typeset Page 867] to Mr. Rubottom. The Ambassador said these two men were representing Nicaragua at the current IMF and IBRD meetings, and that Dr. Lugo Marenco had signed last Friday a loan agreement with the Eximbank in the amount of $8 million for agricultural diversification projects. The Ambassador then expressed his appreciation on behalf of his Government for the favorable consideration which had been given this loan application.

Mr. Rubottom said he was pleased that the loan agreement had been worked out to everybody’s satisfaction. He then pointed out that such a loan was to help the people of the country. He said that Nicaragua’s economy, like that of many other Latin American countries, would be benefitted by some diversification. Mr. Rubottom then made reference to the fact that Argentina had recently received a $10 million Eximbank loan, (constituting a specific portion of EXIM assistance to Argentina) to be utilized through the Banco Industrial for small and medium Argentine business loans. He stressed that equal opportunities and consideration would be given to all categories of businessmen with regard to availability of the money for loan purposes. He said he hoped the same would be true with regard to the EXIM funds made available for agricultural diversification in Nicaragua. Dr. Lugo Marenco said there was no limitation as to whom agricultural loans were available and that the “little man” would receive the same consideration as the “big man”.

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Dr. Delgado then said that Nicaragua was making all out efforts to develop a sound agricultural program, and pointed out that the loan from the EXIM bank would be put to good use in enabling a switch-over to crops other than coffee and cotton. Dr. Lugo Marenco said he anticipated that 1960–61 would be a hard year for Nicaragua and added, however, he did not think Nicaragua would need a stand-by drawing at the end of this year from the IMF.

Mr. Rubottom asked about President Somoza’s health. He was informed that the President was getting along very well. In this respect Ambassador Sevilla-Sacasa remarked upon how appreciative President Somoza was of the recent visit of Dr. Dudley White. He said Dr. White had examined him and had recommended that he reduce the number of pills he was taking and increase his amount of exercise.

The conversation was concluded with Mr. Rubottom expressing pleasure over the Ambassador’s courtesy call.

  1. Source: Department of State, Central Files, 103-XMB/10–559. Official Use Only. Rubottom initialled his approval of this memorandum.↩