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

8. Memorandum from Dungan to President Kennedy, July 6¹

July 6, 1962

The attached memorandum requests your approval for the announcement of the $80 million commitment to Bolivia. The proposed program has been under negotiation for several months and the Bolivian negotiators are standing by here in Washington waiting for a decision.

The proposed program is based on a plan submitted by Bolivia and reviewed favorably by the nine Wise Men. It is essentially a political program as have been the some $220 million which have gone into Bolivia since 1952. It is different in that, for the first time, the Bolivians have agreed to a more rational review of their own budget and a better administration of AID funds.

Approximately $41 million of the $80 million would go for the generation of local currency but the dollar account is tied to U.S. procurement. In this case, this is not a subterfuge and there will probably be a very small gold drain.

I recommend that: (1) you approve this proposed program and (2) announcement of it be delayed until after the Foreign Aid debate is completed in the House.

Ralph A. Dungan

Attachment

1. Transmits a memorandum to approve announcement of the U.S. commitment of assistance to Bolivia; handwritten note that Kennedy approved. No classification marking. 1 p. Kennedy Library, National Security Files, Brubeck Series, Bolivia, 1961–1962.