419. Memorandum of a Telephone Conversation Between the President and the Secretary of State, Washington, June 19, 1958, 6:10 p.m.1

The Sec said we are having a rough time with Garcia on the communiqué and he will have a draft to show him at dinner tonight. What we have got is a 75 million dollar Ex-Im Bank Credit and a 50 million dollar for development loan contingent upon our getting the requisite funds from Congress and then there would be if and when we get it, though we are not saying anything about it in the communiqué, 25 million dollars on this gold claim. They have a 3-year 300 million dollar program and this meets their purposes which Garcia [Page 890] admits but he wants to be able to mention 200 million even though they don’t spend it. There is no way of getting it and it would not be in good faith with a side agreement that he would not call for it. The Sec thinks we should stand firm. G2 pretends to be unhappy. Bohlen thinks he probably is satisfied and should be. He will press the Pres tonight so you will probably have an unpleasant time of it. The Pres said the answer to him is we cannot promise money that is not appropriated and authorized. We have to work on a yearly basis and have to keep good faith with the Congress as with him. The Sec will bring a draft3 to dinner.

  1. Source: Eisenhower Library, Dulles Papers, White House Telephone Conversations. No classification marking. Transcribed by Bernau. The call came from the Secretary.
  2. President Garcia.
  3. A joint statement was issued on June 20 and printed in Department of State Bulletin, July 21, 1958, pp. 120–121.