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

355. Telegram From the Department of State to the Embassy in the Dominican Republic¹

Washington, January 19, 1963, 8:05 p.m.

682. During Bosch conversations in Washington (full accounts being pouched) it became evident he and his associates have not yet developed concrete plans for positive action in economic and social field to be put into effect upon assumption power. Bosch, however, extremely conscious need make maximum impact immediately. When pressed for info, Bosch usually limited himself to reference to various portions PRD program of govt. which as Embassy knows is little more than generalized statement broad intentions.

As result our concern that in absence establishment of at least basic outlines specific programs new government will flounder about badly in critical initial period, and in order seize opportunity that planning vacuum affords us to shape Bosch course, further conversations were held in New York in effort pin Bosch down and get him and associates started on hard task of getting concrete plans in condition for execution very early in new administration.

Bosch agreed to our assisting him officially or unofficially in at least blocking out plans for action in major fields, although he remained quite vague regarding his own ideas on actual targets and priority among them.

Specifically Bosch agreed to having technical advisers made available from US to PRD “planning committee” to work on plans in several areas. He stipulated that association these experts (who might come from Embassy or AID mission Santo Domingo, USG agencies here or private sources) with PRD “planners” would have to be handled carefully and quietly, that joint group would not discuss plans with or request any assistance from present government except as agreed by Miolan and that consequently group would have to rely largely on published data and resources Embassy and AID Santo Domingo. He said he would inform Miolan of this understanding and instruct him to take personal charge PRD side joint effort. Embassy/AID would be expected use Miolan as point contact this undertaking.

Since New York talks² we have learned Bosch has taken to Europe with him Mario Diza, Venezuelan official IDB who has been in Santo Domingo working with Banco Agricola. Diaz designated by Felipe Herrera following Bosch request for economic advisor. Not clear whether he supposed provide general economic advice or deal only with agricultural credit. In addition, Bosch made number approaches various international agencies and private groups (including foundations) for technical assistance. Although precise nature and status these requests not clear, most if not all, will take effect only in post-inauguration period.

While we recognize great difficulties (not least of which is uncertain qualifications PRD personnel) in working this out in short time before inauguration, we consider it essential in our own interest that vigorous effort be made. We prepared take special steps to carry out our part arrangement.

On basis Bosch statements and our own appreciation requirements, we believe areas listed below should be attacked by joint group. Country team requested provide own views soonest on general concept, suggested areas, and personnel and information resources available in Country Team to meet requirements. In its evaluation, Country Team urged indicate other areas, even if out side present AID programs, which in its judgment should be given higher priority attention by Bosch administration. In reviewing list, Country Team should assume no increase present or projected FY 64 funding levels.

On receipt these comments, which should be furnished by opening business Jan 22, we will revise list and instruct Embassy approach Miolan referring to New York understanding, offering proposed list as reflection New York talks, and stating our desire and readiness to meet Bosch’s request for cooperation. Meanwhile, we will be arranging for experts on standby basis.

Suggested list follows:

1. Impact programs: As indicated above, Bosch wants be able announce immediately impact program or programs that would give substance to his promises of improved economic and social levels. Tended emphasize road construction (particularly farm-market) on which he said PRD engineers in Ministry Public Works have necessary data. Hopes be able cite on inauguration specific links to be constructed. Also wants put into immediate effect “people’s dining room” idea.

2. Public finances: Bosch very concerned short-term difficulties this sector: IMF debt, commercial arrears, sharp increase in FY 63 budget, large internal debt which he believes to be 41 million, and Central Bank policies (compounded in his view by antonomy issue). Appears recognize need advice in developing coordinated policy in budget, currency and foreign exchange management and in tax reform and collection. (Has arranged for IBM survey of possibility mechanization revenue collection and expenditure control.)

3. Agrarian reform: Bosch acknowledges progress made but wishes step up pace. Wants exempt grazing, mineral and coffee lands from reform in order promote diversification.

4. Trujillo properties: FYI. This not specifically agreed to and represents our own suggestion. End FYI. Bosch intends use non-sugar land in agrarian reform program, with sugar properties organized along cooperative lines. Wants use best Puerto Rican experience in sugar coops.

He is very indefinite on industrial and commercial enterprises except for general emphasis on cooperative approach. Claims he wants government out of business.

5. Diversification: Heavy Bosch emphasis on development cattle and minerals industries, with accompanying technical skills (e.g. veterinarians). Considerable but less emphasis on poultry and fishing industries. (Made formal request for 26 Peace Corps Volunteers to assist in developing fishing.)

Rusk

1. Source: Department of State, Central Files, 739.00/1-1963. Secret; Priority. Drafted and approved by Crimmins and cleared by Dungan and S/S.
2. See footnote 2, Document 352.