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  3. Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII
  4. Document 444

444. Memorandum by Assistant Secretary of State for Inter-American Affairs (Holland)1

Washington, December 10, 1955.

SUBJECT

  • Notes on Problems in Countries Visited on Recent South American trip

The following is a brief summary of some of the problems encountered in the course of our trip to Colombia, Ecuador, Peru, Bolivia, Chile and Argentina.

Colombia

1.

Military Equipment

The Colombians made two presentations on their desire for more military equipment. The first was a frank request for more equipment. The second was an accusation that we were not living [Page 892] up to our obligations under the military agreement. As to the first request, we feel that the Ambassador should tell the Colombians frankly that in the present budget there is no money for new military assistance not contemplated by our existing agreement. As to the assertion regarding non-compliance with the military agreement we feel that the Ambassador should ask the Colombians to participate in a joint study of the obligations of the parties under the agreement. This study should be made to determine whether either side is delinquent in its obligations.

2.

ICA Programs

It was found that, contrary to the policy guidance of ARA, the ICA mission had established an investment counseling program, thus duplicating the normal functions of the Embassy.

In actual practice duplication was being avoided by having the ICA officer involved assigned to the economic section of the Embassy. However, it was decided to eliminate reference to an investment counseling program from the program structure of the ICA mission.

3.

Export-Import Bank Activities

The Bank is prepared to go forward with the Paz de Rio loan, but is awaiting an IBRD report.

The Minister of Finance requested a line of credit to be managed by the Central Bank and to be used primarily to import agricultural equipment. He requested $100 million; Mr. Waugh indicated that he might consider a line, but of a considerably smaller amount. The Export-Import Bank agreed to give a reply on this application.

4.
I talked to President Rojas about the bad publicity that he is getting in the United States on account of his suppression of the newspaper El Tiempo. While we were there he announced the appointment of a panel of jurists to draft a decree guaranteeing freedom of the press. It remains to be seen whether the decree will be effective. The chairman of the panel is Eduardo Zuleta Angel.
  1. Source: Department of State, Holland Files: Lot 57 D 295, Colombia. Confidential. Drafted by Holland. Copies were forwarded to the following members of the delegation who accompanied Holland to South America: Samuel Waugh; Major General Robert W. Douglass, Chairman of the U.S. Delegation to the Inter-American Defense Board; Corbett; and Harley.↩