44. Telegram From the Ambassador in Guatemala (Sparks) to the Department of State1
363. For Holland. I saw President Castillo last night 8 p.m. He had received communication from Ambassador Cruz on grant aid developments in Congress. He thought it essential at this time Department support $15 million approved by House which he considered would strengthen his government locally. He thought if you did not support this amount Congress might not approve it which action would be misinterpreted in Guatemala.
[Page 122]I again explained Congressional developments outlined Department telegram 336 June 82 and assured him of our support, stressing necessity projects be fully justified. President felt his original request had been based on five-year plan and fully justified. I agreed transmit his request to you.
Since executive reserves right to expend only that part of appropriation which it considers necessary and in view present uncertainty as to exact amount Congress may eventually appropriate for Guatemala, I offer for consideration following action prior June 30:
- 1.
- Restore $1.2 million diverted from approved project to cover deficit on Pacific Slope Highway and
- 2.
- Authorize commitment $4 million from available surplus funds to insure minimum $9 million of new funds for FY 1957. Should Congress eventually appropriate $15 million naturally we would expend only that part required achieve our objectives in Guatemala.
Foregoing positive action would be interpreted as continued US support of President Castillo.