810.154/1237

The Minister in Costa Rica (Hornibrook) to the Secretary of State

No. 64

Sir: I have the honor to refer to my despatch No. 40 of October 15, 1937,27 and to report as follows:

On October 27 I called upon Mr. Ricardo Pacheco Lara, Minister of Public Works, for the purpose of presenting Mr. Horatio T. Mooers, Second Secretary of the Legation. During the course of the conversation the Minister brought up the subject of the construction of the San Carlos–Alajuela highway. He reminded me of the recent action of the Costa Rican Congress in authorizing negotiations with either the Legation or officials of the Inter-American Highway as to possible participation of the United States in the construction of an additional twenty kilometers of the San Carlos-Alajuela road. He then requested my personal opinion as to the best method of approach. He was advised that if the Costa Rican Government desired the cooperation of the United States in the construction of the San Carlos section that it might perhaps be well to ask the Foreign Office to advise the Legation and that in such event I should of course be only too glad to communicate the views of the former to the Department of State. I added that I could see no objection, however, to informal conferences with the officials of the Inter-American Highway.

The delay of the Foreign Office in acting upon the resolution of Congress pertaining to a bid for American participation in the construction of the San Carlos–Alajuela highway is in no sense of the word due to lack of interest in the construction of this project. National pride has made it rather embarrassing for the Foreign Office to ask for further favors in view of its long delay in acting favorably upon our original proposals. It may be reasonably expected, however, that within the next week or two the Costa Rican Government will formally request American participation in the above-mentioned project.

In as much as the proposed construction will require only a very limited outlay of cash and American road building machinery will be available after the completion of the Cartago-San Marcos highway, [Page 193] I recommend that as a gesture of goodwill the requests of the Foreign Office be anticipated and that we voluntarily offer to participate in this project.

I pointed out to the Minister of Public Works when the matter was presented that the original appropriation for American participation in highway construction in Central America had been nearly exhausted and I was not at all certain that funds would be available for the San Carlos–Alajuela project. However, the local press during the past week contained an article to the general effect that only seven hundred thousand dollars of the one million dollar appropriation for participation in the Inter-American Highway construction had been expended. Therefore it may reasonably be anticipated that our failure to cooperate in the twenty kilometer project will be made the subject of unfavorable press comment and may adversely affect our prestige in Costa Rica. At the present moment our position is so strong in this country that I regard it as unwise to court criticism in the press, but the questions of whether or not we should extend further aid to Costa Rica or await formal representation from the Foreign Office before agreeing to participation in the San Carlos–Alajuela project is, of course, a matter for the Department to decide.

Respectfully yours,

Wm. H. Hornibrook
  1. Not printed.