Foreign Relations of the United States, 1961–1963, Volume XII, American Republics

174. Memorandum of Conversation¹

Palm Beach, Florida, December 24, 1961.

SUBJECT

• Summary of Conversation between President Kennedy and President Frondizi at Palm Beach, December 24, 1961, on subjects other than the Prospective Meeting of Consultation of Ministers of Foreign Affairs Scheduled for January 22, 1962

PARTICIPANTS

• President Kennedy
• President Frondizi
• Argentine Foreign Minister, Dr. Miguel Angel Carcano
• Argentine Ambassador to Washington, Sr. Emilio Donato del Carril
• Argentine Under Secretary of Foreign Affairs, Dr. Oscar Camilion
• Argentine Chief of Political Section of Foreign Office, Dr. Carlos Ortiz de Rozas
• Assistant Secretary of State, Robert F. Woodward

1. President Frondizi expressed pride and satisfaction in the economic gains his Administration has made, with the result that public attention in Argentina has become focused on constructive economic developments and away from the former unproductive discussions of “nationalization” of utilities and industries and on largely theoretical and impractical discussions of social problems and labor benefits.

2. He pointed out that this had made it possible for the Argentine Government to weather a 40-day strike of railroad workers and discharge 40,000 of them who had been working absurdly short hours and were unneeded. The Argentine Government gave these workers full termination pay and would have discharged up to 40,000 more if the Government had the money to pay termination pay to them. Now the Government badly needs to show the public improvements in the railroads and wants to purchase freight cars and other equipment in the United States with a requested Eximbank loan. President Kennedy said he would speak with President Linder of the Eximbank about this, recognizing that the Eximbank has been awaiting action on the request for a World Bank loan for rehabilitation of the railways and that the World Bank has been awaiting the study of its mission in Argentina on this subject which will be completed next month.

3. President Frondizi spoke with satisfaction of the provincial elections in Santa Fe and other provinces in which his supporters won large majorities and the “Peronists” had a surprisingly small showing. Despite this showing, he thought it would be decidedly disadvantageous to the Government in the March elections if the voters were stirred up with publicity about debate on possible application of sanctions against Cuba at the Punta del Este meeting in January.

4. President Frondizi mentioned his hope for success in the efforts of the US mission going to Argentina next month to study ways in which cured and pickled meats can be prepared for shipment to the United States without any danger of foot and mouth disease. President Kennedy expressed a similar hope.

5. President Frondizi alluded to the continuing Argentine desire for financing of the El Chocon-Los Colorados hydro-electric and regional development project. President Kennedy stated, as he had in September 1961,² US willingness to give the most careful and sympathetic consideration to participation in the financing when the proposal is formulated and presented and when indications of the other sources of financing are ready.

6. President Kennedy reviewed briefly with President Frondizi the status of the interest of the US Steel Corporation in possible establishment of a steel mill in Argentina as evidenced by a study now in process.

7. President Frondizi commented that he was pleased that a new US Ambassador in the confidence of President Kennedy is being sent to Argentina and expressed the hope that he would come soon. President Kennedy said he would come just as soon as the question of his confirmation by the Senate can be worked out with the Senate which reconvenes in about two weeks.³

8. President Frondizi said that the Argentine Ambassador to Cuba, who had come to New Orleans to report to him, had asserted that there is steady economic deterioration in Cuba and that the recent Castro declarations are for the purpose of attempting to compel the Soviet Bloc to take on greater responsibility for economic support of Cuba—and also for the purpose of enabling Castro personally to compete with old-line Communist leaders who appear to be competing seriously with him within Cuba. (For example, a speech by Blas Roca two days before Castro’s speech of December 1 received much more publicity in the press than Castro’s.) The Argentines asserted, also, that they considered Castro’s provocation of diplomatic breaks with Venezuela, Colombia and Panama—and his speech of December 1—were designed to force a vote on a “hard line” at the Meeting of Foreign Ministers which would divide the inter-American system and thus increase Cuba’s chances of retaining a degree of cooperation and support from Brazil, Mexico, Chile and a few other countries.

9. President Frondizi said he did not consider the situation in Brazil to be very stable and he considered that any agitation, such as debate over sanctions against Cuba, which might precipitate movements in Brazil of the right or left, would be harmful.

10. President Frondizi asserted that there is no need for land reform in Argentina which provides for any division of present land ownership, but that increased productivity of agriculture is badly needed. He implied that he thought there might be some need for land division in countries such as Chile where the rural population is a larger percentage of total population. President Kennedy said he hoped that the “Operation Beef” technical assistance program was helping with increased productivity, and President Frondizi said appreciatively that it is.

11. President Frondizi remarked on his impression that the Japanese with whom he talked a week ago did not consider Red China a threat because they believe Red China’s internal problems are so great. He said he thought Argentina might be able to sell grains, meat and wool to Red China. President Kennedy said that Red China constitutes such a great and unpredictable threat to all of us in the Western World—and will more so as it obtains nuclear weapons—that it would be very unfortunate if anything were done to help the Government in the face of even a remote chance that internal forces may be developing in opposition to the present Peking Government.⁴

1. Source: Kennedy Library, National Security Files, Countries Series, Argentina, General, 8/61-12/61. Confidential. Drafted by Woodward, and approved by Bundy at the White House on December 26. Frondizi’s visit to Palm Beach was an informal one.
2. See Document 173.
3. Robert McClintock was appointed Ambassador to Argentina on February 6.
4. On February 1 Frondizi sent Kennedy a long letter detailing economic progress and problems in Argentina, and requesting “in concrete terms” $50 million credit from the U.S. Treasury “without the presently required provision of total prior utilization of the $100 million contingent credit granted by the International Monetary Fund.” Frondizi also requested $100 million with the program of the Alliance for Progress to finance the transfer of 200,000 public employees to “new productive occupations in national development sectors.” (Kennedy Library, National Security Files, Countries Series, Argentina, General, 1/62-2/62)