Office of the Historian

421. Telegram From the Department of State to the Embassy in Tunisia1

Washington, April 11, 1960—9:25 p.m.

1314. Embtel 1416.2 In call on Dillon April 8 Slim requested general increase U.S. economic assistance stating that olive and wheat crop failures this year would cause serious problems.3 Dillon said we would study and explained Brand (DLF) planned arrive Tunis shortly to consult with GOT and USOM in effort develop projects acceptable DLF which principal area in which U.S. assistance might be increased. Dillon also outlined present U.S. thinking re development groundwater along lines Deptel 1238,4 but Slim replied that GOT, concerned over danger salinity from overpumping, was not interested in U.S. proposal and had decided continue its efforts find funds finance Oued Nebana dam.

Would seem preferable discourage visit Mestiri and Rasaa pending thorough GOT discussion with Brand of specific projects (e.g. airport) which might permit DLF make immediate contribution to situation described reftel. Brand will of course be prepared explain in further detail U.S. proposal on Oued Nebana and we would hope that GOT would be willing take opportunity his presence for thorough discussion all aspects this project.

While many demands on SA contingency fund exist, might be possible allocate some additional FY 60 funds if country team considers that crop failures justify additional FY 60 funds and can without mentioning to GOT recommend suitable activities for financing from this source.

Herter
  1. Source: Department of State, Central Files, 772.5–MSP/4–660. Confidential. Drafted by Dillon and Chase, cleared by McElhiney, and approved and signed for Herter by Dillon.↩
  2. Telegram 1416, April 6, reported that Ladgham had asked if the United States would send a group to Tunis to discuss Tunisia’s overall economic program, and also discussed perceptions that the United States had been unresponsive to Tunisian requests. (Ibid.)↩
  3. A memorandum of this conversation is ibid., 772.5–MSP/4–860.↩
  4. Telegram 1238, March 26, discussed an alternative to the Oued Nebana Dam. (Ibid., 872.2614/3–2660)↩