86. Memorandum of conversation among President Kennedy, President Orlich, and other U.S. and Costa Rican officials1

[Facsimile Page 1]

SUBJECT

  • Requests for U.S. Aid: Project Financing, National Industrial Corporation, Education, Health and Fiscal Problems

PARTICIPANTS

  • United States

    • The President
    • The Secretary
    • Assistant Secretary Martin
    • Ambassador Telles
    • Mr. Moscoso
  • Costa Rica

    • The President
    • Second Vice President Carlos Saenz Herrera
    • Dr. Rodrigo Loria Cortez
    • Dr. Roberto Ortiz Brenes
    • Mrs. Marta Martinez de Montis
    • President’s Four Year Old Son

President Orlich was accompanied by the Second Vice President of Costa Rica, Dr. Carlos Saenz Herrera, Dr. Rodrigo Laria Cortez, Dr. Roberto Ortiz Brenes, Mrs. Marta Martinez de Montis and his four-year old son.

President Orlich delivered a letter in book form to President Kennedy outlining in detail the problems which Costa Rica and the Govern[Typeset Page 223]ment are facing. He very briefly mentioned the four problems included in the letter and stated that all information desired in detail was included in said letter.

President Orlich spoke of the fiscal problem, stating that when he took office there was a deficit of 180 million colones which had accumulated over several past administrations, and that his Government had been able to reduce the existing deficit from 180 million colones to 90 million colones. However, the daily fiscal problem was still serious. He requested President Kennedy’s assistance in obtaining necessary budgetary help through loan applications in connection with development projects involving schools, hydro-electric plants, industrialization of electricity and highways. President Kennedy assured President Orlich that he would look into this matter and requested Mr. Moscoso to submit to him certain information related to the pending development project loans involving fiscal assistance to the Government of Costa Rica.

The second item in the letter involves a request for help in the establishment of a national industrial corporation. President Orlich stated that this [Facsimile Page 2] was essential and necessary for the industrial and economic development of the country.

The third item was the national educational program. President Orlich stated that due to the explosive population growth it was necessary to make every effort not only to meet the present additional need for schools and teachers, but also to attempt to meet the future problem of schooling which would become very serious due to the high population growth. Mr. Moscoso is to look into this matter though he pointed out that with the high rate of literacy in Costa Rica we thought economic development had a higher priority.

The fourth item was the national health program. President Orlich is interested in securing help necessary to continue the fight against malaria, tuberculosis and malnutrition in certain sectors of the population. President Orlich again stated that the details of these four matters were included in his letter. With the assistance of the doctors present he mentioned that the 450-bed Children’s Hospital has just been completed, that it is a general hospital for children and that its equipment is now being installed. He mentioned that they had the necessary doctors and nurses which had been previously trained in the United States. However, their problem involved the funds required for daily operation once the hospital is inaugurated, probably in the next two months. He delivered a letter to Mr. Moscoso outlining the necessary funds required for the next three or four years. He stated that initially the hospital would need at least 50% help in its operating budget with a reduction of such help in future years from 50% the first year to 40% the following year, 30% the third year, and so on. He felt that then the [Typeset Page 224] Government of Costa Rica would be in a position to assume a greater share of the operating responsibility and funds. President Kennedy asked Mr. Moscoso to look into this matter to determine what Washington policy is on such requests and notify President Orlich. The doctors, in the presence of President Orlich, presented President Kennedy with an antique coin and two gold Indian Huacas for Mrs. Kennedy as an expression of the gratitude and appreciation of the Costa Rican people to the American people for the help in building the Children’s Hospital. (The United States Government provided a loan of two million dollars to assist in the construction of the Hospital in addition to the Alliance for Progress assistance contributed in the training of personnel and in the purchase of necessary equipment.)

  1. Requests for U.S. aid: Project financing, National Industrial Corporation; education, health and fiscal problems. Official Use Only. 2 pp. Kennedy Library, National Security Files, President’s Trip—San Jose, March 1963, Memcons.