59. Telegram From Secretary of State Rusk to the Department of State1
Secto 3. Highlights First Plenary Session (public). Rivera (El Salvador) Chairman.
Rivera. Emphasized economic integration, political unification. Integration a form of self help under Alliance for Progress. Asked CA Presidents commit selves to: (1) customs union; (2) free movement labor; (3) mobilization available capital; (4) regional coordination national policies, [Page 136] plans; (5) stable higher prices for primary commodities; (6) self help and reform, including good private investment climate, more public investment. Asked more foreign assistance. Noted Cuban subversive impedes accomplishment Alliance goals.
Orlich (Costa Rica). Must improve political, social conditions. Called for: (1) greater civic conscience; (2) better living conditions; (3) ample employment opportunity; (4) equality of opportunity; (5) elimination economic inequities between nations as well as between classes of people; (6) willingness to accept results of democratic processes. Noted US power shields Latins from Soviets, enabling Latins devote selves to economic and social progress, asked reduced Latin military budgets. Hoped for early international disarmament, reallocation funds to help under-developed areas. Asked early completion Inter-American highway.
Ydigoras (Guatemala). Seeks: (1) a Republic of Central America; (2) solution of some economic and social problems; (3) control of Belize (British Honduras). Expects US help, especially on Belize.
Villeda (Honduras). Emphasized harmful effects on CA politics, society, economy of filibusterers, old foreign investors such as fruit companies. Conceded foreign businesses not now as bad as once were. Said major CA problems are: (1) need for political unity; (2) population pressures; (3) precarious economy—poor terms trade with industrial areas, lack development capital (said free enterprise socially and politically most desirable, but lack of resources demands large government role in development); (4) lack of civic conscience which leads to Caudilloism; (5) Cuba and Castroite subversion; (6) need for rapid CA economic integration (requires external help); (7) advance under Alliance for Progress, better living standards, sacrifices by all (especially CA elites), perhaps some radical solutions.
Somoza (Nicaragua). Called for CA unity, better security arrangements against Cuba, support for Guatemalan claim to Belize, CA economic integration. Under economic integration asked: (1) industrialization, foreign investment, currency stabilization; (2) more import substitution; (3) better living conditions for all; (4) flexible foreign financing which helps pay local currency costs of development; (5) uniform regional foreign trade policy; (6) Panamanian association with CA common market. Deteriorating terms of trade, lack of education and housing, poor land distribution, poor health impede economic integration movement.
Chiari (Panama). Panama expects from meeting (1) more aid under Alliance for Progress, (2) better control of subversion. Economic development requires (a) greater mass market, (b) correction inequitable terms trade, (c) success of Alliance for Progress. Re Alliance he feared failure because U.S. and Latins dissatisfied with contributions of each [Page 137] other, lack of spectacular progress gives Latins sense of hopeless impotence. Noted Panama’s special trade and economic relationships, nevertheless supported full economic integration of five CA countries, asked associate membership.
Schick (President-elect Nicaragua) spoke, covered same ground as others in general way.
President Kennedy cited (1) common American heritage, brotherhood; (2) Inter-American system and past joint actions keeping extra-continental powers out of hemisphere; (3) non-intervention; (4) joint hemispheric effort in Alliance for Progress, CA accomplishments and needs, need for equality of opportunity for all; (5) hindrances created by Castro-Communist subversion. Reference to defeat of William Walker and pledge of U.S. support for CA economic integration brought ovations.
- Source: Department of State, Conference Files: Lot 66 D 110, CF 2229. Official Use Only; Priority.↩