Bolivian economy. With your approval this representative can be dispatched in the very near future.o We are also willing to begin immediately on a series of projects important to the economic development of Bolivia. These are projects which are already in an advanced state of preparation and which will make an immediate contribution to national welfare. Other urgent projects such as low-cost worker and campesino housing-can be undertaken as soon as planning and programming are complete. Fourth, a loan agreement was signed with the Bolivian Government on March 24,41 providing $3.5 million to finance the purchase of urgently needed machinery and equipment to improve the operating efficiency of the state-owned mining enterprise, COMIBOL.2 This amount constitutes the United States contribution to the first phase of a "triangular" program for the rehabilitation of the Bolivian mining industry. The Federal Republic of Germany has also made a similar sum available for this purpose. It is expected that the InterAmerican Development Bank will announce its contribution to the triangular agreement soon. The loan arrangements also provide for new geological explorations and research for improved recovery facilities under a management-consultant contract with the expert West German firm of Salzgitter. Urgent discussions with the two latter partners in this operation are currently in progress to complete working arrangements for the first phase of this project and to consider the total investment eventually to be required. Fifth, the YPFB 43 has recently made application to Washington lending agencies for a loan to finance the import purchase of essential repair and replacement equipment urgently needed to restore oil production to former levels. In response to this request the International Cooperation Administration will extend an immediate loan for YPFB of $6 million for this purpose. Sixth, the diversification of the Bolivian economy urgently requires the extension of its existing road network to open up new areas for settlement. I propose that steps be immediately taken to accelerate the use of counterpart over and above the Bs 16 billion now earmarked for road construction. In addition we will, as soon as plans are complete, loan $2 million to finance the equipment costs of this road program. Seventh, pursuant to the objectives of our "Food for Peace" program, and in agreement with your Government, $1,350,000 of surplus agricultural products are being allocated for a school lunch and family relief program to be administered by voluntary relief agencies under PL 480 Title III. To cover the transportation and distribution costs 40 Dr. Rowland A. Egger, chairman of the Woodrow Wilson School of Foreign Affairs, University of Virginia, was subsequently appointed to this position; see the White House announcement of Aug. 14, 1961 (ibid., Sept. 11, 1961, p. 449). "See ibid., Apr. 10, 1961, p. 531. 42 43 Corporación Minera de Bolivia. Yacimientos Petroliferos Fiscales Bolivianos (the Bolivian Government Petroleum Agency). 44 Bolivianos. 45 See post, doc. 642. incurred in this program, a sum of $500,000 is being made available from United States dollar funds. Eighth, in addition, several other projects to be financed by counterpart funds have already been agreed on. As a result of these special measures, existing programs, loans already committed to Bolivia by such agencies of the United States government as the Development Loan Fund (for the El Alto airport and the La Esperanza Sugar Mill, for example), and funds committed by the Federal Republic of Germany and such agencies as the Inter-American Development Bank, a total of some $50 million in free world assistance is pledged to Bolivia. The projects to be financed through this assistance are regarded by my Government as initial steps towards the realization of the longer-range program of economic development to which I have already referred. With these steps I believe we can begin to help the Bolivian nation move toward its ultimate destiny as a strong and prosperous country. Bolivia has a vital role to play in the task of developing our hemisphere and in the preservation of the values of American civilization. This great revolution has blazed a path for others to follow. And I believe that if we work together the horizons of your people and mine will be unlimited-and that the next ten years will see the fulfillment of the hopes of the American people for economic progress with social justice. My best personal good wishes, JOHN F. KENNEDY 136. UNITED STATES MEASURES ADOPTED TO ASSIST THE FINANCIAL STABILIZATION PROGRAM OF BRAZIL: Joint Announcement Issued at Washington by the U.S. Secretary of the Treasury (Dillon) and the Brazilian Minister of Finance (Mariani), May 17, 1961 46 Secretary of the Treasury Douglas Dillon and the Minister of Finance of Brazil, Clemente Mariani, today [May 17] announced the conclusion of financial negotiations between the United States and Brazil. In his message to the Brazilian Congress in March President [Janio] Quadros announced a new economic program to bring economic growth and progress to the Brazilian people under conditions of financial stability. President Kennedy, in the spirit of Operation Pan America and the Alliance for Progress, responded by directing the appropriate agencies of the United States Government to assist the Brazilian people in carrying out Brazil's new economic program. President Kennedy pointed out that the future of Brazil-a nation containing half the population of South America-was vital to the future of the Western Hemisphere. "By identifying ourselves with The Department of State Bulletin, June 5, 1961, pp. 862-863. 47 Mar. 15, 1961. the economic and social aspirations of the people of Brazil," the President said, "we are identified with the hopes of half the continent." The size and importance of Brazil make it clear that the success of this nation in realizing its potential for growth and progress is a key to the maintenance of free government in Latin America. As a result of the financial negotiations between the United States and Brazil, the United States has agreed: 1. To postpone to later years principal repayments to the ExportImport Bank, amounting to $220 million, which would otherwise have fallen due during the rest of 1961, calendar year 1962, and the first half of 1963. 2. To extend the obligation to repay over a 20-year period the existing debt to the Export-Import Bank of approximately $530 million by rescheduling payments of approximately $305 million. This rescheduling includes the postponement, referred to above, of principal payments otherwise due during the next two years in the amount of $220 million. 48 3. To provide new credits to Brazil totalling $338 million. Of this amount $168 million will be provided by the Export-Import Bank, $70 million by the Treasury Exchange Stabilization Fund, and $100 million from President Kennedy's new foreign assistance program, subject to action by the Congress on the proposed foreign aid program. Minister Mariani and Secretary Dillon have signed the Treasury Exchange Stabilization Agreement and the President of the ExportImport Bank, Harold F. Linder, has issued a letter of commitment on behalf of the Bank. 49 While in Washington Minister Mariani also completed discussions with the International Monetary Fund. The Fund today announced that, in order to assist Brazil in carrying out its new economic program, the Fund has agreed to reschedule Brazil's existing debt to the Fund of $140 million and, in addition, to extend to Brazil a standby credit of $160 million.50 Conversations were also held by Brazilian representatives with private United States banks with a view to alleviating the burden of repayments in the next few years, which amount to $114 million, as well as to obtaining additional credits. These conversations are proceeding satisfactorily and will be concluded by the Director of Exchange of the Bank of Brazil who will stay in the United States for this purpose. The Brazilian and United States Governments have also undertaken discussions with European countries regarding the contribution they might make in helping Brazil to overcome its financial difficulties. The two governments have been informed that a number of European countries have agreed in principle to extend to Brazil a substantial standby credit and to reschedule Brazil's existing debts to them in order to 45 Established by sec. 10 of Public Law 87, 73d Cong., approved Jan. 30, 1934 (48 Stat. 341), as amended (31 U.S.C. § 822a). 49 The Brazilian Minister of Finance arrived in Washington May 8, 1961. 50 The text of the IMF's announcement is printed in the Department of State Bulletin, June 5, 1961, pp. 863-864. lengthen the terms of repayment and reduce substantially payments of principal due in 1961 and 1962. During his visit to Washington, Minister Mariani and Ambassador Walther Moreira Salles, who has conducted the preparatory phase of the negotiations, were received by President Kennedy. The President expressed his great hope that assistance provided by the United States, the International Monetary Fund and European countries would help to assure the success of Brazil's new economic program. 137. UNITED STATES COMMITMENT TO THE LONG RANGE ECONOMIC DEVELOPMENT OF ARGENTINA: The United States has long had deep ties of friendship with the people of Argentina. In the past we have worked together to raise living standards and to defend the freedom of all of the American states. If the 1960's are to be a decade of progress for the Americasif we are to bring increasing economic progress and social justice under freedom to our entire hemisphere-then we must rely, in substantial part, on the future cooperative efforts of the Governments of Argentina and the United States. We in the United States hope to work with the Argentine Government in its heroic effort to improve the welfare of its people, for we are committed to the long-range economic development of Argentina. Even more important, we are committed to a continuing relationship of friendship, partnership, and mutual respect. Together Argentina and the United States can work not only to solve their own problems but to improve the life of free men in this hemisphere and throughout the world. For the United States and the cause of freedom has no stronger or more respected friends than the people of Argentina. 138. AN ACT MAKING APPROPRIATIONS FOR THE INTERAMERICAN SOCIAL AND ECONOMIC COOPERATION PROGRAM AND THE CHILEAN RECONSTRUCTION AND REHABILITATION PROGRAM FOR THE FISCAL YEAR ENDING JUNE 30, 1961, AND FOR OTHER PURPOSES: Public Law 87-41, Approved May 27, 1961 52 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following White House press release dated May 24, 1961 (text as printed in the Department of State Bulletin, June 12, 1961, p. 920). This statement was issued following a meeting between the President and the Argentine Minister of Economy, Roberto T. Alemann, at the White House. 52 H.R. 6518, 87th Cong.; 75 Stat. 86. See Inter-American Programs for 1961, Denial of 1962 Budget Information: Hearings Before a Subcommittee of the sums are appropriated, out of any money in the Treasury not other. wise appropriated, for the Inter-American Social and Economic Cooperation Program and the Chilean Reconstruction and Rehabilitation Program for the fiscal year ending June 30, 1961, namely: FUNDS APPROPRIATED TO THE PRESIDENT INTER-AMERICAN COOPERATION INTER-AMERICAN SOCIAL AND ECONOMIC COOPERATION PROGRAM For expenses necessary to carry out the provisions of sections 1 and 2 of the Act of September 8, 1960 (74 Stat. 869),58 $500,000,000, to remain available until expended: Provided, That the funds herein appropriated shall not be available to be loaned or reloaned at interest rates considered to be excessive by the Inter-American Development Bank or higher than the legal rate of interest of the country in which the loan is made. CHILEAN RECONSTRUCTION AND REHABILITATION PROGRAM For assistance in the reconstruction and rehabilitation of Chile, as authorized by section 3 of the Act of September 8, 1960 (74 Stat. 870), $100,000,000, to remain available until expended. 139. TREATY ESTABLISHING A LATIN AMERICAN FREE TRADE AREA AND ASSOCIATION (THE "MONTEVIDEO TREATY"), WITH RELEVANT PROTOCOLS AND RESOLUTIONS, Signed at Montevideo by Representatives of Argentina, Brazil, Chile, Mexico, Paraguay, Peru, and Uruguay, February 18, 1960, Entered Into Force, June 2, 1961 54 The Governments represented at the Inter-Governmental Conference for the Establishment of a Free-Trade Area among Latin American countries, 55 Persuaded that the expansion of present national markets, through the gradual elimination of barriers to intra-regional trade, is a prerequisite if the Latin American countries are to accelerate their economic development process in such a way as to ensure a higher level of living for their peoples, Aware that economic development should be attained through the maximum Committee on Appropriations, U.S. House of Representatives, 87th Congress, 1st Session; H. Rept. 254, 87th Cong., Apr. 20, 1961; Inter-American Social and Economic Cooperation Program and Chilean Reconstruction and Rehabilitation Program: Hearings Before the Committee on Appropriations, U.S. Senate, 87th Congress, 1st Session, on H.R. 6518; S. Rept. 201, 87th Cong., May 3, 1961; and H. Rept. 413, 87th Cong., May 25, 1961 (the conference report). 63 Text in American Foreign Policy: Current Documents, 1960, pp. 290–292. 54 Text as printed in U.N. doc. E/3333, pp. 32-42; see footnote 63 below. The signatories of the appended protocols and resolutions are the same as those of the present treaty. The treaty is in force for the states listed in footnotes 61– 62 below. 55 Held at Montevideo, Uruguay, Feb. 4-18, 1960. The first Inter-Governmental Conference for the Establishment of a Free-Trade Area among Latin American Countries met at Montevideo, Sept. 16-30, 1959. An additional meeting on the proposed free-trade area was held at Lima, July 16-18, 1959; see the source text, pp. 2-3. |