41. Memorandum of Conversation1
SUBJECT
- Alliance for Progress
PARTICIPANTS
- The President
- Mr. Dungan, Assistant to the President
- Mr. Coffin, Acting Administrator of AID
- Mr. Moscoso, United States Coordinator of the Alliance for Progress
- Mr. Woodward, Assistant Secretary—ARA
- Mr. Goodwin, Deputy Assistant Secretary—ARA
- Mr. Bissell, Deputy Director—CIA
- Mr. Hansen, Assistant Director—BOB
- Mr. Coombe, Assistant Secretary—CU
- Mr. Rostow, Councilor
- Mr. Morales Carrion, Deputy Assistant Secretary—ARA
- Mr. Hilsman, Director of INR
- Mr. Linder, President—Ex-Im Bank
- Mr. Shriver, Director—Peace Corps
- Mr. Nitze, Assistant Secretary of Defense—ISA
- Mr. Haydn Williams, Deputy Assistant Secretary of Defense
- Mr. Sternfeld, Director, Office of Development Planning—AID
The discussion was opened by Mr. Woodward, indicating to the President that a message addressed to Latin America telling of the forward strides that have been taken domestically in the fields of integration, housing and education would have a tremendous impact on the Latin American populace. Mr. Woodward also indicated that of tremendous significance to L.A. would be the results of the forthcoming commodity discussions, particularly the coffee stabilization agreement, which, if preliminary discussions are successful in March, will be taken up in the U.N. in June.
Mr. Goodwin then presented a series of papers to the President.2 The President questioned the drop-off in commitments of U.S. aid to Latin America in January and also wishes to know who was responsible for the Inter-American Bank since its disbursements have been so low in comparison to the commitments. He was informed that the lag in IDB disbursements was probably related to the long lead time connected with the individual projects. As to the low level of commitments in the month [Page 95] of January, there was no complete explanation possible. Mr. Linder of the Export-Import Bank indicated that he had several projects in the pipeline and that he expected to make available about 300-350 million dollars in loans to Latin America in the next year.
The President discussed the situation in Argentina and raised a number of questions relating to the 1963 proposed program for Argentina and Ecuador and total Alliance for Progress requests. (It appears that the President will wish to review the individual country proposals within the next 10 days.) He indicated that the $3 billion authorization request should be over and above the amounts available for lending in L.A. under the 5-year commitment authority. This would indicate to the Congress that we were not attempting to use the funds previously justified for Latin America to be spread among the other countries of the world.
The President expressed some concern that the justifications to the Congress should not be too vague, that specific projects be set forth to justify our fund request. He suggested that Mr. Moscoso receive a complete briefing on the tactics of Representative Passman in conducting hearings.
The President indicated his strong view that the fate of the whole aid program rests on the success of the Alliance for Progress and that operations and activities connected with the Alliance for Progress should be given the highest priority (five to one), notwithstanding the requirements of the other areas in AID for staff and other sources.
The President indicated he did not wish Mr. Moscoso to be called an Assistant Administrator. He believed within the AID organization he should be called Director or Coordinator for the Alliance program.
The President inquired into the status of the proposed contract with the National Academy of Science on the hoof and mouth disease problem in Argentina. He directed that action be taken to consummate the contract and that no publicity be given to the possible effect eradication of this disease would have on imports by the U.S. from Argentina.
Action: AA/LA with White House Science Adviser
The President inquired as to the low level of PL 480 in Latin America and requested a memorandum as to the possibility of expanding these programs. He also inquired as to the large amounts of PL 480 going to Egypt and the reasons therefor.
Action: AA/LA with A/MR and White House Coordinator of Food for Peace
The President approved the establishment of a Latin American Policy Committee under the chairmanship of ARA, with membership of USIA, AID, CIA and Defense. He requested that this Committee review [Page 96] on a weekly basis the over-all political problems and economic programs by country and that a report be furnished him each week.
Action: ARA
The President directed that Mr. Moscoso conduct a thorough study of all procedures which may be hampering the program and that AID make available the services of Mr. William Parks for this purpose. He also directed that ways be found to fill current job vacancies in the LA Bureau and that steps be taken to bring in small numbers of highly qualified men, with in-service training being used as the means of increasing their utility. He asked Mr. Nitze whether personnel from DOD could provide some knowledgeable people formerly employed by them as attaches. There seemed to be general consensus that this source would not be too useful.
A discussion was held as to the need for authority to remove people who are employed in the L.A. programs without regard to existing statutes. The President was informed of the current evaluation team headed by George Train travelling through L.A. Mr. Coffin indicated the tentative decision of Mr. Hamilton on not requesting the renewal of the 621 firing authority for the agency as a whole. The President, however, indicated that it might be desirable to pinpoint this for Latin America only. The solution to this matter will be presented to the President in the context of the legislation to be submitted to the Congress.
Action: BOB in clearance of the proposed legislation
On the question of supergrades, it was agreed to withhold further action until Mr. Hamilton completes discussions with the Chairman of the Civil Service Commission on obtaining additional positions from the Civil Service pool.
Mr. Coombs indicated that he had an education program for L.A. totaling $100 million a year. He also indicated some concern over the need to indicate U.S. interest in a forthcoming UNESCO-sponsored conference in Santiago. The President requested that Mr. Coombs’ proposal be presented to him after appropriate staffing. A later session may be necessary to review Mr. Coombs’ recommendation.
Mr. Nitze indicated to the President that various determinations requiring the President’s action have been pending in AID for 4 months. The President directed that these determinations be made available to him for action and if further delays are necessary, to explain the reasons therefor. He indicated that Senator Fulbright reported that views in the Senate have changed considerably on restricting the amount of military aid to Latin America and that it would be possible to provide additional assistance if required.
[Page 97]Action: Bureau of Budget and Department of Defense will review possible needs for additional military aid to L.A.
Mr. Nitze also raised the problems in connection with the Inter-American Defense College and the lagging contributions by other Latin American countries.
Action: Bureau of the Budget with State and Defense will report to the President on the problem of moving ahead in establishing the college
- Source: Department of State, Presidential Memoranda of Conversation: Lot 66 D 149, January-March 1962. Confidential. Drafted by Sternfeld on February 26. The time of the meeting is from the President’s Appointment Book. (Kennedy Library)↩
- See Document 40.↩