Honduras

U.S. Relations With Honduras

Note: The parenthetical citations are to the numbered documents in the text.

Throughout the 3-year period, U.S.-Honduran relations were cordial and unencumbered by vexing problems. The United States welcomed the administration of President Ramon Villeda Morales as one with which it could do business and one which typified the type of decent, democratic government in Latin America that it liked to see. (HO–1, 2) Unfortunately, although Honduran needs were not great in terms of dollar expenditure, the United States had to be cautious in responding to requests for assistance. (HO–3) Villeda’s middle-of-the-road policies inspired grumbling by the Chief of the Armed Forces, but U.S. officials counseled patience and assistance to the civilian authorities. (HO–4) Although by no means a strong-arm leader, Villeda fended off two military coups launched from outside the country in 1959 by the former Honduran Chief of Staff. (HO–5, 9)

In 1960, Villeda made an informal visit to Miami and New Orleans and received a warm letter of support from President Eisenhower who praised the Honduran leader’s efforts to strengthen his country’s democratic institutions. (HO–13) Villeda was clearly perceived as someone friendly to the United States and aware of the dangers of international Communism. (HO–2) From this perspective, it was not surprising that in the late months of 1960, the Department of State took extraordinary measures to arrange loans for the financially troubled United Fruit Company, since it was felt that collapse of the company would seriously destabilize the Honduran economy, cause loss of jobs, threaten the future of the Villeda administration, provide a seedbed for Communist discontent, and deprive local Honduran communities of numerous public services which United Fruit provided in the absence of the Honduran Government’s ability to do so. (HO–15, 16, 20, 21)

Happily for Villeda and Honduran morale, late 1960 also witnessed a great political victory for the country when the International Court of Justice provided a peaceful settlement to a [Facsimile Page 82] longstanding dispute by awarding to Honduras territory long contested with Nicaragua. (HO–18, 19)

Finally, a month before the end of the Eisenhower Presidency, the Department of State secured approval for the United States in concert with Honduras to refer to the International Court of Justice the question of jurisdiction over the Swan Islands. The islands had been occupied by the United States for a century and Secretary of State Herter felt [Typeset Page LXXV] that the Honduran claim was definitely a weak one, but he thought it politic to make the move in order to strengthen the Villeda government and offset the criticisms of the Castro government in Cuba which was itself incensed by American radio broadcasts hostile to Castro emanating from the islands. (HO–22)