Foreign Relations of the United States, 1961–1963, American Republics; Cuba 1961–1962; Cuban Missile Crisis and Aftermath, Volumes X/XI/XII, Microfiche Supplement

122. Memorandum of conversation, March 20, between President Kennedy and President Rivera ¹

San Jose, March 20, 1963, 9:30 a.m.

SUBJECT

• Salvadoran Political and Economic Situation, Plans—Support for Alliance Informational Activities—U.S. Cotton Policies—Requests Being Submitted for 5 Loan Projects, More Peace Corpsman—Communism in El Salvador—Travellers to Cuba

PARTICIPANTS

• United States

  • The President
  • The Secretary of State
  • Assistant Secretary Martin
  • Mr. Moscoso
  • Ambassador Williams

• El Salvador

  • The President
  • Dr. Rector Ecobar Serrano,
  • Minister of Foreign
  • Affairs

After expressing his greetings and admiration, President Rivera said that in El Salvador his government was making a great effort to overcome certain backwardnesses which had handicapped the Republic for years. He spoke first of the political situation and emphasized that there was free activity of political parties except for the Communist Party. He said proposals were being undertaken for improvement in the electoral system and he expected that proportional representation would be introduced this year. He said that there was unrestricted liberty of the press.

Turning to the Alliance for Progress he mentioned his great friend Mr. Moscoso with whom he had collaborated closely in promoting the Alliance for Progress. He said that he felt now that there was need for greater dissemination of information about the Alliance for Progress. He referred to Ambassador de Lesseps Morrison’s recent visit and said that he hoped that through his assistance a committee could be established to undertake this task. (There was further discussion between the President, the Secretary, Mr. Moscoso and Ambassador Williams of the role that USIA played in helping to spread information about the Alliance for Progress. It was pointed out that while the Committee to which President Rivera was referring was sponsored by the OAS, much work was already being done by USIS.)

Rivera next spoke of the success of El Salvador in creating an atmosphere of confidence so that economic production would increase. He said that when he began his program, there was much resistance by the wealthy people to social security. “As you know, Mr. President,” he said, “wealth in our country is often in the hands of a few. We have achieved conciliation with the wealthy. The big capitalists are cooperating with us.” He said that there were two representatives of the private sector on the National Planning Committee, one from the wealthy group, the other from the artisan level.

He then said that social progress and economic progress must move forward together. He said that much was being done now in economic sectoral planning.

Rivera expressed his concern over newspaper reports that there would be an increase in cotton subsidy in the United States which would have an unfortunate effect in El Salvador since it would probably cause a drop in cotton prices. This would have a bad effect on the economic growth of the country.

President Kennedy intervened to say that he thought that no legislation to permit an increase in cotton subsidy was likely in the near future, but he would let President Rivera know when he returned to Washington what the answer might be. He said that the matter had been raised in the United States.

Rivera then turned to his social program. He emphasized that 20 per cent of the national budget was going into investment in the public sector. He stressed the need for hospitals and First Aid Stations. He expressed pleasure over the arrival of the first mobile health units. He said he hoped to have two units in every department of the country (or a total of 28). President Kennedy asked how many there were now. Only two were in service but ten more were expected. Ambassador Williams noted that a mobile health unit had recently arrived from Germany, which would have an important contribution to the program.

Rivera had words of praise for the Peace Corps and said there was great support (simpatia) for it in the country. He said that the Minister of Agriculture had emphasized to him the value of the Peace Corps in education, technical improvements and community development. He said that he himself (Rivera) had had opportunity to observe the Peace Corps directly. El Salvador would soon request an increase in the number of volunteers. He hoped the Corps could assist in achieving two purposes: one, to raise production, the other, to foster a healthy spirit in the countryside which would resist Communism.

Rivera mentioned agrarian reform and said that El Salvador needed it, but suffered from severe lack of land. He had a committee studying it which would not seek the creation of many minifundias but rather a reform that would help to increase production and improve the lot of the campesino. He hoped to achieve land ownership for the small farmer which would be protected against exploitation.

On his over-all economic program, Rivera said he expected to see an increase in gross national product, from the present 4.7% per annum to a rate of 6.5%. This would require a considerable investment—150 million dollars in the next five years. Rivera then spoke of the industrious character of the Salvadorans. Unfortunately there was 18 per cent unemployment. It was vital to provide work. He said if people worked they will not be misled by Communism.

(Parenthetically, Rivera asked Ambassador Williams when the new American Embassy building would be constructed. Secretary Rusk said that there had been some delay in the Congressional appropriation. President Kennedy asked the status of the plans. Ambassador Williams replied that land had been bought, architectural plans had been made, construction could start as soon as the appropriation was available.)

President Rivera said that his government was submitting five new loan projects. These include three agricultural loans, one industrial development loan, and one loan for school construction for an over-all total of about 17 million dollars.

With respect to housing, President Kennedy inquired as to the status of the projects. Ambassador Williams said that a loan of 6.1 million dollars had been received from the Inter-American Development Bank and that low cost housing had already been built under this program. President Rivera spoke of his great satisfaction in having approved, just before his departure for Costa Rica, a new law authorizing the establishment of a savings and loan association designed to bring local savings into housing.

Rivera spoke next about measures to control Communism and said that Salvador now had a law for this purpose which he believed would be effective. He indicated that he had precise information about Communists and stated that in a population of 2,600,000 there were only 200 real Communist leaders and 5,000 sympathizers. In contrast, he said, President Somoza had said that in Nicaragua there were 35,000 Communists. Rivera said that violence had diminished in El Salvador lately and he believed that with an improved economy these would have less temptation to Communism.

Referring to his economic program he said that El Salvador had been handicapped by the lack of technical experts. Too many, he said, have gone over to international organizations, especially the Organization of American States. He was grateful for Mr. Moscoso’s assistance in providing technical experts especially in planning. He expected El Salvador’s national plan to be finished by the end of 1963.

President Kennedy asked what happened with Salvadoran students in Cuba. Did President Rivera know what they did when they returned?

Rivera replied that his government kept well-informed on these persons. Most of them were in the University. Ordinarily, he said, Salvadoran workers were not Communists. He mentioned the fact that the principal trade union confederation had 40 thousand members, whereas the Communist confederation had only about 3 thousand. What preoccupied him was that some of the workers who went to Cuba came back and did sabotage while students who went to Cuba went into the coffee and cotton fields to stir up the workers by illusory promises. Among measures to control this agitation were the National Guard patrols and the good work of the Catholic Church in the countryside.

Rivera said that he had noticed an interesting development among the Communists in El Salvador lately. There was a split between the advocates of Krushchev and the advocates of Mao. Some felt defrauded by Krushchev because of the Cuban crisis and had turned to Mao. There consequently had been changes in the personnel of Communist leadership. The psychological blow of Cuba had demoralized many who had now turned to the Chinese Communists. Neither of the two lines of Communist policy suited Rivera.

President Kennedy noted that we might be better off if they followed Krushchev, because if Krushchev thought he was losing the Communists abroad to Mao, Krushchev might feel a compulsion to become more violent.

In bringing the meeting to a close, President Kennedy said that he had been particularly anxious to meet President Rivera and to express to him the support for the Alliance during its early times. There had been much criticism of the Alliance but “these trees don’t grow overnight”. President Rivera said that he had delivered to Ambassador Williams a report on El Salvador for the President. President Kennedy said he would take it with him to Washington and would certainly do what was possible to help Salvador in its development program. (The report was delivered to General Clifton).

1. Salvadoran political and economic situation and plans; support for Alliance informational activities; U.S. cotton policies; loan projects; Peace Corps; communism in El Salvador; travelers to Cuba. Confidential. 5 pp. DOS, CF, POL EL SAL.