<--PREV Doc #1639  |  Memorial Commission Home Page  |  Second Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #1641 Document #1640; September 7, 1960 To Arturo Frondizi Series: EM, AWF, International Series: Argentina ; Category: Confidential The Papers of Dwight David Eisenhower, Volume XXI - The Presidency: Keeping the Peace Part X: Ending an Era; August 1960 to January 1961 Chapter 23: "To keep the Free World free"   Dear Mr. President and Esteemed Friend: I have given your recent letter and accompanying memorandum the prompt attention which I promised in my initial message.1 Your views command particular respect in my eyes and in the councils of this Government, and in this instance they have provided a major point of reference for me and for my advisors in our continuing review of what the United States should be accomplishing by its efforts in support of the hemispheric objectives which our two Governments share.2 We in the United States seek peace and freedom and progress for all the world, with resources which, although large, are not limitless; and I think that the very range of our endeavors tends at times to distort the assessment of what we have achieved and of what may perhaps be left undone. The courage with which you and your Government have faced the economic problems which beset your country, Mr. President, has been impressive. We know that, notwithstanding short-range political disadvantages, your essential economic decisions have been made with a determination to have Argentina help itself to the greatest degree possible. The evidences of this quality in your Government have been influential in the shaping of the policies of my Government, which have been and continue to be directed toward close and productive cooperation with your Government. To the fullest extent feasible, the United States Government will continue to support the inter-related programs of financial stabilization and economic development which are embodied in your Government’s forward-looking policies.3 In order to define Argentina’s requirements and to evaluate prospective projects, it would appear appropriate for discussions to be held promptly between those officials of our two Governments most directly concerned with this matter. The Under Secretary of State, Mr. C. Douglas Dillon, is now in Bogota at the meeting of the Committee of 21 and, if you agree, this may provide an opportunity for your representative to discuss this subject with him.4 This could be useful in preparing for further discussions which we would be pleased to have with your Minister of Economy, Eng. Alvaro C. Alsogaray, if he visits Washington in late September, as I understand he is scheduled to do in connection with meetings of the governing bodies of the International Monetary Fund and the International Bank for Reconstruction and Development.5 This would not preclude, of course, the presentation by your Government of detailed proposals through any other official channels. Imbued with the purpose of responding to the needs of our friends in this hemisphere for continuing social development, the United States has now embarked, as you know, on a new program of financial cooperation in that vital field.6 I assume, Mr. President, that your Government has also been giving consideration to ways in which we might be of appropriate assistance in this regard. I think that you will also be interested to learn that my Secretary of Agriculture, Mr. Ezra T. Benson, is planning to travel in South America during October, and I hope that he will have an opportunity during this trip to exchange views with you respecting United States policies and measures affecting agricultural commodities and their marketing.7 Since there is full recognition here of the crucial importance of earnings from agricultural exports to Argentine recovery efforts, I am particularly desirous of eliminating misunderstandings and misinterpretations in this field. Please be assured, Mr. President, that there is complete realization within this Government of the importance of your Government’s current economic program and of the necessity that it be carried to a successful conclusion.8 With warm personal regard, Sincerely 1 On the Argentine President’s correspondence see Frondizi to Eisenhower, August 9, 1960; Eisenhower to Frondizi, August 16, 1960, AWF/I: Argentina. The State Department had drafted this reply (Herter to Eisenhower, Sept. 2, 1960, ibid.). 2 Frondizi had written to resume the "frank discussions" started during Eisenhower’s December 1959 visit to Argentina (see no. 1383). Frondizi had undertaken similar discussions with various leaders during his June trip to Europe, where he had emphasized the "absolute necessity for the highly developed countries to step up their collaboration in the development of the underdeveloped nations if all the peoples of the free world wish to preserve the way of life common to all of them." The Argentinian President feared repercussions if his austere economic reforms failed to spur the Argentine economy. During the current world crisis, he had reflected, underdeveloped countries and former colonies, many increasingly nationalistic, were choosing either western-style development or revolution leading to dictatorship. Argentina had chosen a "Western way of life," but the United States had failed to provide enough assistance to ensure her success. Frondizi had complained that Argentina could not afford the slow and bureaucratic procedures of the international credit agencies. His country needed aid immediately to create employment and to finance highway, housing, and power projects; without such aid he would fail in his "program of stabilization, despite the immense sacrifices laid upon the entire Nation, and the social and political results will be unpredictable." Frondizi’s accompanying memorandum outlined Argentina’s most pressing economic problems and needs. For background see State, Foreign Relations, 1958 - 1960, vol. V, American Republics, pp. 628 - 37. 3 President Eisenhower had told Dillon and General Goodpaster that the Argentine President’s letter was "rather emotional in tone" and that Frondizi saw his own problem clearly but did not "appreciate the difficulties we undergo regarding our aid programs and trade restrictions." He thought that Frondizi should be told that "we are somewhat astonished that the situation appears as bad to him as he indicated." He also asked Dillon to provide the Argentinians with "scientific evidence regarding the unsatisfactory sanitary status of the meat they wished to export to the United States" (Memorandum of Conference with the President, Aug. 18, 1960, AWF/D). Herter had advised the President not to take issue with Frondizi’s unfavorable comments as the tone of this letter was meant to be "friendly and affirmative." The State Department had expected the Argentine government to request additional financial assistance, he had explained, and steps were being taken to correct Frondizi’s misunderstanding about U.S. aid efforts and procedures. The United States wanted Frondizi’s economic program to succeed, he continued, and there was interagency agreement to provide further assistance in the field of highway construction (Memorandum for the President, Sept. 2, 1960, ibid.). 4 The Committee of 21 meeting in Bogotá, Colombia, Sept. 5 - 13, 1960 (for background see no. 1580). 5 Engineer Alvaro C. Alsogaray, educated at the Argentine Military Academy and future Ambassador to the United States, would meet with Dillon and other officials on September 28, 1960, in Washington. Alsogaray would report that his government and the Development Loan Fund and Export-Import Bank were working out an agreement on highway construction aid. They would also discuss possible funding for a housing program. The United States wanted to cooperate, the Under Secretary would say, but it did not make loans unless requested and would need more details before making any commitments (State, Foreign Relations, 1958 - 1960, vol. V, American Republics, pp. 643 - 46). 6 For background on the Social Progress Trust Fund see no. 1532 and 1580; on the Argentinians’ critical reaction to U.S. aid plans see New York Times, September 5, 1960. 7 Frondizi had complained about the obstacles involved in exporting agricultural products to the United States (Frondizi to Eisenhower, Aug. 9, 1960, AWF/I: Argentina). Benson would meet with Frondizi on October 29, during his fifteen-day trip to South America. He would report that the United States was prepared to import Argentine beef and to hold consultations on agricultural trade problems (New York Times, Oct. 30, 1960). 8 On October 25 the United States would announce a new Development Loan Fund program for housing and highway construction in Argentina (New York Times, Oct. 26, 1960). Bibliographic reference to this document: Eisenhower, Dwight D. Confidential To Arturo Frondizi, 7 September 1960. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 1640. World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition; Baltimore, MD: The Johns Hopkins University Press, 1996, http://www.eisenhowermemorial.org/presidential-papers/second-term/documents/1640.cfm <--PREV Doc #1639  |  Memorial Commission Home Page  |  Second Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #1641

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