Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

195. Telegram From the Department of State to the Mission at the United Nations⁰

April 1, 1960, 7:35 p.m.

803. For Lodge from Dillon. Subject: UN Economic Aid Topic at Summit Meeting. Your 970, 971.¹

1. As a result of French proposals in Paris East-West Relations Working Group for Summit consideration of joint aid to LDC’s in collaboration with USSR, we have concluded that serious disadvantages are inherent in suggestions of this nature, notably:

(a) fundamentally divergent and competitive objectives of East and West in extending aid to LDC’s, making collaboration deceptive to world opinion and impracticable of execution;

(b) opportunity thus afforded Soviets of advancing their penetration to areas from which they are now excluded.

2. Recent discussions in NATO Council have revealed high degree of agreement among members regarding disadvantages of proposals for joint initiatives in this field.

3. If Soviets do raise topic at Summit, we would plan to counter with proposal for increased USSR contributions to UN economic programs (e.g. WHO), excluding, however, World Bank and IDA.

4. In light your Tel 971 will give further consideration desirability approaching USSR at opportune time (but not in Summit context, unless raised as noted para 3 above) to increase contributions to ETAP and Special Fund in form of convertible rubles. In view Khrushchev public statements Paris, he is already on record as being opposed to any increase Bloc contributions to UN voluntary funds. This not likely go unnoticed by LDC’s and definitely to our advantage. Under circumstances we doubt whether we should put on additional pressure which, if successful, might have seriously adverse impact on UNTA programs. We have misgivings that increases in USSR contributions would result in substantial increase number Soviet experts sent to sensitive areas such as Africa under UN umbrella, and UN become cover for seriously increased number of fellowships and training grants to be used in Bloc countries.

For above reasons I am sure you will agree that Yugoslav initiative reported your tel 970 unfortunate. Would also regret Brazil lining up with neutralist countries as suggested. Hope you can not only convince Freitas-Valle soundness of position but stimulate action on his part to keep other LA countries from joining Yugoslav initiative. You may want point out US already on record as ready join with other countries provide additional aid to LDC’s when measure internationally controlled disarmament achieved, but pending progress disarmament Yugoslav initiative not likely prove fruitful.

Herter

0. Source: Department of State, Central Files, 800.0000/4–160. Secret; Priority. Drafted by Kotschnig, Gold, and Heyward Isham, staff assistant in Secretary Herter’s office; cleared by Nunley, Wilcox, Martin, Merchant, Dean, S/S, SOV, and ARA and with Bohlen; and initialed by Dillon.
1. Eisenhower, Macmillan, de Gaulle, and Khrushchev were scheduled to meet in Paris in May. Telegram 970 from Paris, March 27, reported a Yugoslav proposal that the summit participants consider the question of economic aid to underdeveloped countries. (Ibid., 800.0000/3–2760) Telegram 971 from Paris, March 28, transmitted Lodge’s suggestion that Eisenhower challenge Khrushchev to participate in U.N. economic programs. (Ibid., 800.0000/3–2860)