1. I had a 40-minute discussion with President Jose Lopez-Portillo during
my recent visit to Mexico. A number of topics were discussed in a most
frank and friendly atmosphere. The attached memo covers these
points.
2. In my opinion it is evident that the President lacks access to
reliable information on political events in various parts of the world.
It is clear that he needs more dialogue with well informed U.S.
officials. This could help to counter and hopefully change many of his
notions on the world’s problems and possible solutions.
Attachment
Memorandum by the Deputy Director of Central
Intelligence (Carlucci)3
SUBJECT
- Discussion with President Jose Lopez-Portillo
While discussing the political situations in Central America and the
Mid-East the President made a number of observations, the more
significant of which are summarized below.
In spite of almost insurmountable difficulties the Nicaraguan
Government is making commendable progress and is deserving of
unconditional support. While the junta serves as a smoke screen for
the more
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militant leftist
elements who hold power in Nicaragua, there are no present
indications that Nicaragua will become another Cuba or become
dominated by the Soviet Union or Cuba. Nicaragua has a number of
highly nationalistic, inexperienced, young leaders who are
attempting to find a way of their own and not fall under the
domination of the extreme left or extreme right. Mexico believes in
their cause and is lending all the unconditional help it can to
Nicaragua, with the exception of military aid which Mexico is not
able to provide.
For the time being the U.S., Mexico and other interested nations
should adopt a hands off policy toward El Salvador.4 It is still
too early to determine if the junta is worthy of support and will
work for the interests of the less privileged classes. If a hands
off policy leads to civil war, so be it.
Mexico is not particularly concerned with political developments in
Central America. It does sympathize with those elements of society
who are striving for a better standard of living and political
freedom and believes they deserve encouragement.
In past years the U.S. has had a tendency to support oppressive
military regimes in many areas of the world and, as a consequence,
has left the oppressed populations of these countries no alternative
but to seek a radical leftist solution. The U.S. would do well to
change this policy in favor of substantial economic aid. This should
take the form of guaranteed prices for raw materials. A new economic
order, largely underwritten by the U.S., would solve most of the
problems of the developing nations and bring political stability to
the world.
The U.S. let the Shah of Iran down badly during the last months of
his regime and, as a consequence, is not considered a reliable
partner by many in the world.
The USSR has demonstrated by its
invasion of Afghanistan that it does seek a warm water port on the
Persian Gulf and is attempting to extend its influence in that
critical area.
Mexico refrained from voting economic sanctions against Iran because
it believes no one is firmly in control in Iran and it would be
unjust to punish the whole population for the misdeeds of the
terrorists who hold the American diplomats hostage. Sanctions would
also in essence deliver Iran to the Soviets on a silver platter.
Oil resources are becoming of increasing concern to the USSR as is demonstrated by the fact
that several satellite countries are now seeking oil contracts with
Mexico.
