August 7, 1961

TO: Dr. Henry A. Kissinger
FROM: Ann Garfield
SUBJECT: Latin American summary

I have enclosed a covering summary on Latin America to go with the background paper, which you already have.

Attached to the paper is a copy of the memo which will be sent to the Governor.

[L]

August 7, 1961

TO: The Governor

FROM: Henry A. Kissinger

SUBJECT: Background paper on Latin America

The foreign affairs research staff prepared the
attached paper on Latin America for your information.

The paper has two parts:

(1) a brief summary, covering the highlights of the paper;

(2) the background paper itself, with material on the following subjects:

- Administration action and comment

- Congressional action and comment

- Other pertinent comment

- Other pertinent comment

the following subjects:

(2) the background paper itself, with material on
paper;

(1) a brief summary, covering the highlights of the
The paper has two parts:

FROM: Henry V. Krasiger

TO: The Governor

August 3, 1961

Report No. 2
25 April - 26 July 1961

# LATIN AMERICA - GENERAL
(Summary)

## I. JFK Actions

### A. Appointments

1. Adlai Stevenson as special envoy to tour 10 South American countries on behalf of JFK.

22. de Lesseps S. Morrison as OAS Ambassador

3. Robert F. Woodward as Assistant Secretary of State for Inter-American affairs.

### B. Alliance for Progress

1. On May 9 memoranda were sent to all the agencies connected with the Alliance instructing them as to what their duties were and asking them to accelerate the implementation of projects already funded.

2. JFK signed the agreement for the Inter-American Social Progress Trust Fund, under which $394,000,000 was assigned to the Inter-American Development Bank (Bogota Program).

3. Funds totaling approximately $402 million, in the form of grants and loans, have been given to the following Latin American countries through the agencies connected with the Alliance for Progress: Bolivia, Brazil, Argentina, Honduras, Panama, Guatemala, Chile.

### C. Military Aid

1. In his foreign aid program JFK asked Congress to remove the present ceiling of $55 million on military aid to Latin American governments and to abolish the restriction on assistance for internal security purposes.

2. JFK has proposed $68 million in military aid to Latin America, of which $21 million will be earmarked for "anti-subversive" equipment.

[L]

Latin America - General

2.

3. **Military aid to Bolivia:** In June of this year JFK authorized a $1.6 million agreement which made it possible to deliver anti-subversion equipment to Bolivian forces.

D. <u>Propaganda campaign in Latin America</u>

1. On May 25 JFK asked Congress for $12.1 million for the U.S.I.A. to be used for additional broadcasts to Latin America and Southeast Asia.

2. On a recommendation by Adolf Berle, Jr., a new task force is being established to study a "new concept" for advocating the democratic system.

E. <u>Cuba</u>

1. Following the failure of the Cuba invasion, JFK conferred with leaders of both parties on future policy toward Cuba.

2. In order to hold down dollar earnings of the Castro government, two Federal agencies, acting on JFK's orders, made an agreement with Publicker Chemical Corporation to stop purchases and use of Cuban molasses.

3. JFK endorsed the formation and actions of the Tractors for Freedom Committee however, the Federal Government has remained apart from it and has granted no direct aid.

II. <u>Congressional Activity</u>

A. <u>Alliance for Progress</u>

1. Congress cleared the bill appropriating $500 million for the Inter-American Social and Economic Cooperation Program and $100 million for Chilean Relief in fiscal 1961.

a. Some Republican Senators viewed the program as inadequate and as providing no control over how the money would be spent or assurance that the recipient would remain friendly to the U.S.

b. Democratic Senator Gore is skeptical of the program. He served notice on the Administration that the Foreign Relations Committee intended to "keep a close eye on the Program".

c. Senator Fullbright is in favor of the bill.

Latin America - General

4.

[LC]

U.S. policy toward Latin America involves a tendency to seek formulas applicable to all countries south of the Rio Grande, whereas conditions vary widely in these countries.

B. Military Aid

1. The Wall Street Journal supports Secretary of Defense McNamara and General Lemnitzer in their plea to remove the present Congressional restrictions on military aid to Latin America.

C. Cuba - Tractors for Freedom.

1. Whereas Castro was confident that Latin America would respond with admiration to his "gesture of generosity", editorial comment from Mexico to Argentina began describing him as a "second Eichmann." In twelve Latin American countries citizens' committees were formed to raise the funds for the tractors.

2. Editorial comment in the five National Studies papers favored the tractor exchange.

favored the tractor exchange.

funds for the tractors.

I. Whereas Castro was confident that Latin America would
reassure with admiration to the "feature of generality".

C. <u>Cups</u> - Tractors for Freedom.

Latin America.

present Congressional restrictions on military aid to
McNamara and General Lemaitzer in their plea to remove the
Wall Street Journal supports Secretary of Defense

B. <u>Military Aid</u>

countries.

Rio Grande, whereas conditions vary widely in these
seek formulae applicable to all countries south of the
U.S. policy toward Latin America involves a tendency to

Latin America - General

[illegible]