Foreign Relations of the United States, 1969–1976, Volume E–11, Part 1, Documents on Mexico; Central America; and the Caribbean, 1973–1976

350. Memorandum of Conversation¹

Santo Domingo, May 20, 1975.

SUBJECT

• Courtesy Call

PARTICIPANTS

• President Joaquín Balaguer
• Assistant Secretary William D. Rogers
• Ambassador Robert A. Hurwitch

The nearly one-hour meeting was held in very cordial atmosphere. The subject first turned quickly to the President’s speech the day before. Assistant Secretary Rogers said that he found it to be a very important speech. The President characterized it as “frank” and something that needed saying, for the Dominican Republic and other small countries were suffering from the sharp increase in petroleum prices. The Dominican Republic, less so, he continued, thanks to the unusually high price of sugar; but sugar prices had dropped substantially the last several months and he was concerned over the outlook for continuing development in the Dominican Republic. The President urged that in addition to seeking to lower petroleum prices, a price stabilization mechanism be found to avoid the drastic swings in sugar prices so that he and other heads of state whose economies depended on sugar prices could plan more rationally. Secretary Rogers replied that the U.S. was continuing to address the problem of petroleum prices, but our leverage to obtain lower prices was minimal. We were also studying the problems of prices of other raw materials and of manufactured goods, but these were also very complex problems, the solutions to which were not readily at hand.

Secretary Rogers mentioned that he had last been in the Dominican Republic ten years ago and was favorably impressed by the substantial progress that was evident. The President acknowledged that development was occurring at a satisfactory rate; he continued that he was placing heavy emphasis upon agricultural infrastructure such as dams and irrigation canals. Since the Dominican Republic was essentially an agricultural country with a growing number of mouths to feed, he believed it essential to bring as much land into production as possible, particularly in the arid sections of the country.

President Balaguer raised the question of military assistance, saying that so much of the equipment was obsolete. He stated that he wanted to keep the acquisition of new hardware at the very barest minimum—some rifles and helicopters. He was informed that MAP grant material was very difficult to obtain, since the program was being phased out. It was suggested that he contact the manufacturers in the U.S. directly and arrange lines of credit with the companies concerned. The President said that he would consult his military advisors and once again emphasized his desire to limit military material acquisitions to the most essential.

Secretary Rogers said that we admired the country’s progress under constitutional rule and were very pleased that the President’s foreign policy was oriented toward the U.S. and attuned to ours. Secretary Rogers assured the President that he could continue to count upon our friendship and assistance. The President expressed his appreciation and said that he was satisfied with the assistance he was receiving (he regarded AID assistance as key) and with U.S. representation in his country.

1. Summary: Assistant Secretary Rogers and Ambassador Hurwitch met with President Balaguer and discussed petroleum prices, economic development, military assistance, and U.S.-Dominican relations.

   Source: National Archives, RG 59, Central Foreign Policy File, P830035–1026. Confidential. Drafted by Hurwitch. The meeting was held in the Palacio Nacional. In telegram 2280 from Santo Domingo, May 20, the Embassy reported on the May 19 speech by President Balaguer to an Inter-American Development Bank conference. (Ibid., D750177–0964)