Foreign Relations of the United States, 1964–1968, Volume XXXI, South and Central America; Mexico

272. Memorandum From the Deputy Director of Coordination for Intelligence and Research (Carter) to the Director of Intelligence and Research (Hughes)¹

Washington, October 1, 1964.

SUBJECT

• ARA—Agency Meeting September 30, 1964

PARTICIPANTS

• ARA—Mr. Mann, Mr. Adams, Mr. Pryce
• CIA—Mr. FitzGerald, [name not declassified]
• INR/DDC—Mr. Carter

Chile.

FitzGerald said the Station Chief in Chile had talked with Ambassador Cole shortly before the latter’s departure from Santiago and that Cole said Secretary Rusk doesn’t want us in our dealings with the Frei Government to use leverage acquired through support of the CD.² FitzGerald said this made him very unhappy. He wanted to know if Mann was aware of a directive of this nature.

Mann said he was not. In any case, he added, it depended on the way you use leverage. He doubted that the Secretary’s directive was “as sweeping as it sounds.” He thought the matter could easily be cleared up by talking with the Secretary.³

[name not declassified], who made a recent trip to Chile, said he found Jova (DCM) concerned about “our using our power position.” Mann commented he was not worried about using it; only about our misusing it.

FitzGerald said “it’s the atmosphere of mistrust that bothers me.”

Said Mann: “Don’t worry. I trust you.”

Mann went on to reveal there will be a new Ambassador in Santiago soon and indicated it would be Ralph Dungan, though cautioned that this was to be held close since the agrement had not yet been requested.

Mann said a topflight economist is needed to replace the outgoing economic counselor.⁴ In his view the political battle is over. The battle now will be in the economic field.

[name not declassified] reported that while in Chile he talked with [less than 1 line of source text not declassified] whom we assisted to the tune of [less than 1 line of source text not declassified] shortly before the September 4 election.⁵ [less than 1 line of source text not declassified] told him that funds on hand would last only until December, clearly implying he expected more. [name not declassified] said he made it clear to [less than 1 line of source text not declassified] that no more funds would be forthcoming. Asked if [less than 1 line of source text not declassified] had clearly understood this [name not declassified] replied, “He didn’t hear me.”

[Omitted here is discussion of Cuba and Venezuela.]

1. Source: Department of State, INR/IL Historical Files, ARA/CIA Weekly Meetings, 1964–1965. Secret. Also addressed to Denney and Evans.
2. According to Rusk’s Appointment Book, Rusk met with Cole on September 11. (Johnson Library) No substantive record of the meeting has been found.
3. A handwritten note in the margin by this paragraph reads: “INR participation?”
4. The outgoing chief of the economic section, Thomas R. Favell, did not report to his next assignment until August 1965. He was replaced 3 months later by Robert G. Walker.
5. See Document 267.