246. Memorandum of Conversation0
SEGNI VISIT
SUBJECT
- Aid to Underdeveloped Countries
[Here follows the same list of participants as Document 242.] Following the luncheon for Prime Minister Segni in the White House, the President and the Prime Minister returned to the President’s office, accompanied by their aides, to continue the discussions. The President opened the session by presenting to the Prime Minister an inscribed photograph, which he described jocularly as an “egotistical” act. Mr. Segni expressed warm appreciation.
The President then said that he had suggested that the conversations be resumed to see whether there were points which should be discussed which had not been touched on in the morning session. He knew, of course, that the Prime Minister and his group would be having long conversations with the Secretary of State and others in the State Department.
Mr. Segni replied that, with the President’s permission, he would like to ask Foreign Minister Pella to talk about the question of aid to underdeveloped areas. The Italians were interested in this subject and had a particular interest, in this connection, in Turkey and Iran.
Mr. Pella then referred to the brief talk which had been had with the President and the Secretary on the subject of aid in Paris,1 indicating that the Italians had also had discussions with General de Gaulle and with representatives of Benelux and of Iran and Turkey. He then sketched out some of the general considerations figuring in Italian thinking on the subject, referring particularly to the desirability of developing policies within the Common Market to enable the Six countries to increase their aid to and purchases from the underdeveloped areas.
Mr. Pella said the first question in connection with the possible organization of foreign aid was—what countries would be the source of development aid. Obviously the US with its resources would be the leader, but others should certainly do their part. The question arose as to [Page 548] whether the Russians should be included. The Italians were rather inclined against such inclusion.
The President commented that his off-hand reaction was that until there was a better political climate and some development of trust, it would not seem practicable to him to include the Soviet Union.
Mr. Pella expressed agreement with the President’s statement. He then went on to say that the next question was—what countries should receive assistance, and categorized them as: first, friendly countries; secondly, countries of strategic importance; and finally, uncommitted countries, notably the emergent nations in Africa. He said that the Italians considered that it would be a good idea to create regional groupings of countries which would be composed of both recipient and donor country representatives. They considered that such regional groupings would give the recipients a greater sense of equality and of participation and induce greater responsibility in the use of aid. He said the Italians would hope that the IDA could be connected with the implementation of this regional plan. In this connection he referred to a forthcoming meeting of the Common Market countries in October, when it would be possible to discuss the Italian ideas. In view of this, the Italians would like an indication of US views.
The President said that this was a thing which needed consideration in greater detail than could be had in the present discussion. All the members of various countries with whom he had contact in recent months had expressed much interest in the idea of aid to underdeveloped countries, but a number of them had a very special interest in the field. For example, de Gaulle has a special concern about aid to the French Community. Similarly the British were interested in development inside the Commonwealth. This left the US, Germany, and Italy, and some of our smaller friends as the only countries with flexibility in their approach to the problem. There was a need to get together to consider how the burdens of development aid should be divided.
Secretary Herter commented that the Belgian position, for example, was that if the Congo could get more aid by joining international schemes than Belgium alone could provide, then they would be interested in joining. Otherwise they would not be interested.
Ambassador Brosio said he wished to clarify the President’s meaning as to which countries he meant should confer on the question of the division of the burden of development aid.
The President replied he thought all the free nations should get together, including France and Britain. He had not meant to suggest that just the countries with flexibility in the matter would be the ones to confer.
[Page 549]Mr. Pella said that he agreed that France and Britain must be included in any discussion of the subject.
The President likewise agreed but pointed out that France and Britain might not want to work on a broad international scale or to take a role with respect, for example, to Burma or some of the Middle Eastern countries.
Mr. Pella then inquired whether, specifically, the President would encourage the Italians to explore the subject of aid along lines which had been discussed.
The President replied affirmatively but asked that Secretary Herter be kept closely informed. The Secretary then suggested that Mr. Pella’s breakfast meeting with Mr. Black of IBRD tomorrow morning would be a good occasion on which to discuss the matter further.
Mr. Segni said that we should not forget the needs of certain NATO countries. Turkey, for example, had great needs and also had great resources and development possibilities. He likewise wanted to mention Iran in this connection; Iran was an important pillar of our Western defense.
- Source: Department of State, Conference Files: Lot 64 D 560, CF 1490. Secret. Drafted by Kohler and cleared by S and the White House on October 14. The meeting was held at the White House. See also Documents 242–245 and 247.↩
- At the NATO Ministerial Meeting December 16–18, 1958.↩