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

85. Circular Airgram CA–6669, December 19¹

December 19, 1962

TO: The AmEmbassy, San Jose. INFO: POLAD CINCARIB.

SUBJECT: COSTA RICA—Plan of Action for Period from Present to October 1963.

The Latin American Policy Committee recently approved the enclosed Plan of Action for Costa Rica for the guidance of all agencies concerned with United States policy toward Costa Rica.

Rusk

Enclosure

COSTA RICA—Plan of Action for Period from Present to October 1963

I. OBJECTIVES

A. Political

1. Continuance of an independent, stable, anti-Communist and western oriented Costa Rican Government which will continue both to implement a broad program of social and economic reform under the Alliance for Progress and support United States objectives in international and particularly in Latin American organizations.

B. Economic

1. Evolution of an economy less heavily dependent upon the export of coffee and bananas, through industrial development and crop diversification, but at the [illegible in the original] the creation of high-cost industries and the growing of [illegible in the original] is in crops under the protection of tariffs and subsidies inspired by economic nationalism.

2. Development of an economy directed to the maximum extent possible toward insuring political stability and satisfying the basic social needs of the rapidly expanding population, without, however, committing the Costa Rican economy to indebtedness or obligations beyond its capacity to support.

3. Conservative participation by Government and private enterprise in the Central American Common Market.

C. Military

1. Development and maintenance of an internal security organization looking to the United States for [illegible in the original] training and material support as they are unable to provide themselves and which is capable of defending Costa Rican territory against limited attacks, maintaining security against action by subversive elements and possessed of a self-sufficient intelligence and counter-intelligence and ability.

II. PLANS OF ACTION

A. Political

1. Take advantage of every appropriate opportunity to identify the United States with moderate liberal aspirations for social and economic progress in Costa Rica, with the caveat that United States representatives should be alert to the dangers of becoming identified with specific political groups or movements. In this connection the Department has recommended to the White House that President Orlich be invited to visit the United States early in 1963 as a Presidential Guest.

2. Encourage the GOCR to refrain from interfering in the internal affairs of its neighbors by asserting effective control over those elements supporting dictatorships of either the right or left who in the past have abused the haven granted by Costa Rica to promote revolutions and guerrilla incursions into neighboring countries, especially Nicaragua.

3. Encourage and assist, as appropriate, the free trade union movement in Costa Rica in raising the level of its leadership, expanding skill training programs and eliminating Communist control of labor unions, especially among the banana workers.

4. Encourage Costa Rica to play a constructive role in the development of regional institutions in Central America, bearing in mind the Costa Rican desire to [illegible in the original] independently its influence in Latin America.

B. Economic and Social

1. Assist the GOCR in consolidating its fiscal and budgetary position so that a sound basis may be provided for long-range development planning. However, in view of the fact that the GOCR for the time being has virtually reached its capacity to absorb additional loans, new loan proposals for expansion or development of the public sector of the Costa Rican economy should be carefully weighed to prevent the GOCR from incurring indebtedness beyond its capacity to repay.

2. Assist the GOCR in improving public administration, especially in the fields of tax administration, budget procedures and economic planning, in order that Costa Rica can expedite its reform and development programs.

3. Give greater emphasis to diversification of the Costa Rican economy, attraction of private capital in diversified industries and assistance to the GOCR in establishing a central planning office in accordance with its commitment at Punta del Este to develop and implement a comprehensive national economic development program. This program should include agricultural diversification, with emphasis on livestock quality improvement.

4. Improve land use and land tenure in Costa Rica by (1) demonstrating methods of diversifying agricultural production (2) providing scientific agricultural training and (3) making funds available to assist farmers in obtaining medium and long-term credits for the purchase of land and agricultural equipment.

5. Concentrate the USAID educational program on training skilled and professional workers.

6. Cooperate with the GOCR and other governments in efforts to stabilize their principal exports of commodities such as coffee and bananas.

7. Encourage the development of an investment climate which will stimulate local and foreign responsible private investment in the economic development of Costa Rica.

8. Provide advice and assistance to the GOCR and to private organizations to plan jointly with the governments and private organizations of other Central American countries the adjustments of the Costa Rican economy to the demands of the Central American Common Market, so as to add to its effectiveness and to promote economic development of a regional nature.

C. Psychological

1. Convince Costa Rican political, intellectual and financial leaders that it is in their national and individual interest to participate in and promote the Alliance for Progress.

2. Promote the programs of the Alliance for Progress in Costa Rica, especially those involving civic action.

3. Convince the Costa Rican students, educators and labor leaders of the subversive influence of Castro-communism in their community of interest.

4. Encourage the active participation of the Costa Rican Government in regional organizations which will advance the economic and social development of the nation; i.e., Organization of Central American States, Central American Common Market and the Superior Council of Universities of Central America.

D. Internal Defense

1. To assist the GOCR to maintain public order and internal security in all parts of the country:

a. make available to the public forces, on a grant basis if required, minimum military and police equipment, and necessary training.

b. provide advice and training to the public forces on civic action and counterinsurgency techniques.

2. Urge the GOCR to increase the capabilities of the public forces to carry out its internal security functions, with emphasis on mobility, intelligence and counterinsurgency.

3. Encourage the GOCR to employ the Civil Guard, as practicable, on projects contributing to economic and social development.

4. Encourage the GOCR to continue its representation on the Inter-American Defense Board.

1. Approved Plan of Action toward Costa Rica from December 1962 to October 1963. Secret. 4 pp. DOS, CF, 611.18/12–1962.