49. Biweekly Summary Report on the Alliance for Progress1
MAJOR COUNTRY AND PROGRAM DEVELOPMENTS
1. Results of Mexico City Conference Encouraging
The Alliance for Progress was considerably strengthened by the first annual review conducted by the Inter-American Economic and Social Council in Mexico City during the month of October. This milestone in the conduct of the AFP was greatly facilitated by the careful advance work of all U.S. executives. Not only were the usual Latin American denouncements of the U.S. absent but the Latin American delegates took the initiative in sponsoring action which demonstrated positive adherence to the principal U.S. objectives.
The experience of the first year of the Alliance had, it seemed, convinced each of the member nations that the Charter of Punta del Este was fundamentally valid. The Conference reflected a growing realization on the part of the Latin American delegations that the success of the Alliance, under the Charter, depends in large part on the efforts of their own countries, and is not merely another US aid effort. As a result, the country presentations and the final reports of both the experts and ministerial level meetings subscribed to the vital need for an increased tempo of self-help and reform. The special problems in each of the reform fields—tax, agrarian, institutional—were studied and analyzed with a candor which reached new highs for Inter-American conferences. The Conference concluded that the Central American integration movement was making real progress, though major actions under LAFTA need to be greatly accelerated. In the area of divergent US and Latin American [Page 112] interests—commodity price problems—the final results were at least satisfactory for our purposes, even if temporary.
The Conference came up with some important procedural innovations. First, a committee of two statesmen is to be appointed, to review and make recommendations with respect to the entire Inter-American system in the light of Alliance developments. While this effort is desirable, our primary goal was to provide a platform permitting Lleras Camargo to mount an intensive effort to enlist the younger political leaders in Latin America in more active efforts to implement the principles of the Charter. Secondly, reflecting the strengthened consensus that Latin American efforts were crucial, the Conference established six special groups of responsible government officials, from nine countries each, to review developments in the fields of: planning and project implementation; agricultural development and agrarian reform; fiscal and financial policies and administration; industrial development and financing the private sector; education and training; and health, housing and community development. These groups are to meet at least twice before the next Annual IA-ECOSOC meeting, and will provide real continuity to the review process.
The success of the conference would have received more prominent press coverage both in the U.S. and Latin America had it not been overshadowed by the Cuban crisis. While initially the crisis threatened to sidetrack the Conference, it had a tangible unifying effect on the ministerial delegates.
[Here follow sections 2-9, which discuss miscellaneous Latin American developments during October 26-November 9, 1962.]
- Source: Department of State, Central Files, 720.5/11-1462. Confidential. Attached to covering memoranda from Graham Martin to the President dated November 9 and from Brubeck to Bundy dated November 13. This report covers the 2-week period ending November 9.↩