87. Airgram A–7 from San Jose, July 61
SUBJECT: President Orlich Criticizes US as Dilatory in Assisting GOCR Fiscal Problem.
At the inauguration of a dispensary at Palmares June 16, President ORLICH for the first time publicly criticized the US for its slow processing of GOCR loan applications (Weeka #25, Embtels 677, 686). He stated that had credit been granted quickly last year, when originally requested, the nation would already have shown proof of economic-fiscal recovery. He added that his experience leads him to agree with ex-Presidents KUBICHEK of Brazil and Lleras CAMARGA of Colombia that aid does not arrive expeditiously to assist the ailing Latin American economies.
President Orlich also expressed pride in the operations of the Social Security, Housing and Electric Power authorities, and commented that Costa Ricans should comply with tax laws. Stating that for the first time he was criticizing the Echandi Administration publicly, he charged them with the responsibility for the large public debt which his Liberation Party government inherited. But he, unlike Echandi, did not wish to govern in an easy going way, but wished to lead the country back from the bankruptcy in which Echandi left it. The economic situation daily growing worse, he was disposed to make various organizational [Typeset Page 225] changes in the interest of economy. Costa Ricans must work he said and economize and reduce the importation of such luxuries as television and automobiles which is seriously affecting the national economy.
The President also took the opportunity to speak in high praise of the work of the Peace Corps in Costa Rica, and greeted 2 PCV’s effusively.
COMMENT: The President was undoubtedly encouraged in his criticism of the US by the statements of Kubichek and Lleras Camarga. He was also pressured into the action by local politicians, both of his own party and the opposition. It is reported that Raul HESS, then retiring Minister of [Facsimile Page 2] Economy, who has been under the relentless attack of the opposition press for his failure to restore the fiscal stability he promised upon taking office one year ago, was among those pressing Orlich for a public statement on the problem.
The President’s statement resulted not only from the pressures of political friends and enemies, but undoubtedly represents his own long pentup feelings on the issue. Some of the criticism to which he is reacting is based not only on failure to secure US budget-loans, but also that based on the belief that President Orlich is not taking a firm stand with both party and government functionaries and agencies, and that he is reluctant to face the fact that in politics and government unpopular actions must sometimes be taken for the public welfare.
FOR THE AMBASSADOR:
Embassy sent copies to: CA Missions and Panama
- Report of President Orlich first public criticism of U.S. for slow processing of GOCR loan applications. Confidential. 2 pp. DOS, CF, POL 15–1 COSTA RICA.↩