145. Telegram From the Department of State to the Embassy in the Dominican Republic1
Washington, November 16, 1965, 9:07
p.m.
586. For Bunker. Joint State/AID message. You are authorized begin negotiations immediately with GODR for the provision of $50 million of assistance during FY 1966 to reduce political and economic [Page 345] pressures so that we can move toward the installation of an elected government and our withdrawal.2 In conducting these negotiations you should be guided by following:
- 1.
- Requirements and negotiating strategy set forth in November 10 Memorandum for the President from AID Administrator and Country Team/Solomon memorandum entitled “Supporting Assistance Needs—and negotiating guidelines for Dominican Republic—FY 66”3 is approved as modified below.
- 2.
- You should attempt secure GODR agreement accept maximum proportion of additional assistance on a loan basis with terms and conditions of loan (subject to NAC clearance) similar to last supporting assistance loan to DR. An AID lawyer will accompany “Hassman-Kosters” team (see 3 below) assist preparing loan documents.
- 3.
- You should attempt secure GODR agreement accept maximum proportion of additional assistance on “tied” basis, through Special Letter of Credit or similar procedure. In no event should amount assistance made available on cash transfer basis exceed $12.5 million. Hassman, Kosters and Cameron of AID/W will arrive Santo Domingo promptly to assist with procedural matters connection establishment SLC or other tieing procedure. You should appreciate that Dominican Republic has extremely bad record compliance with U.S. 50/50 shipping requirements and U.S. shipping interests are pressing strongly for strictest possible enforcement this requirement.
- 4.
- You should attempt secure GODR agreement delay receipt AID dollars as long as possible with particular emphasis on minimizing number dollars either loaned or granted during balance 1965.
- 5.
- $25,400,000 from Contingency Fund. Of this sum, $.6 million is for grants in aid CARE, CARITAS, and community development program proposed by Papal Nuncio. This $.6 million should be subject separate negotiations by USAID with local reps charitable groups. Balance $24.8 million consists $19.8 million estimated in basic memorandum to be “hardcore” budgetary support requirement needed for last two months 1965 and $5 million for work projects. Additional $25 million [Page 346] estimated in basic memorandum to be required during first six months 1966 will have to be obtained from Congress by special appropriation to be requested early in 1966. Subject to caveat that $25 million of $49.8 million must be “subject to future appropriation by the U.S. Congress” you may commit full $49.8 million if negotiations so require.
- 6.
- Assume cash transfer would be made available via OAS.
Ball
- Source: Johnson Library, National Security File, Country File, Dominican Republic, Vol. XII, 10/65–11/65. Confidential. Drafted by Richard E. Lippincott (ARA/CAR); cleared by C. Allen Stewart, Reuben Sternfeld (AA/LA), Charles N. Goldman (GC/LA), Sayre, Donald K. Palmer (ARA), Harrison M. Holland (S/S-O), and Bowdler; and approved by Gaud. Repeated to Rio de Janeiro for Vaughn and David Bronheim (AA/LA).↩
- On November 13, while spending the weekend with the President at his ranch in Texas, Marvin Watson received telegram CAP 65703 from McGeorge Bundy. In it Bundy wrote: “Secretary Fowler has approved the balance of payments aspects of the Bell-to-the-President memorandum on assistance to the Dominican Republic [see Document 143] which I left with you on Thursday [November 11]. Ambassador Bunker is in Washington and will be returning to Santo Domingo on Tuesday [November 16] morning. I would appreciate your trying to obtain a Presidential decision on the Dominican paper by the close of business on Monday if at all possible.” This telegram indicates the President saw it. (Johnson Library, National Security File, Country File, Dominican Republic, Vol. XIII, 11/65–1/66)↩
- See Document 143.↩