LETTER OF TRANSMITTAL PHOENIX, ARIZ., February 4, 1957. To the Chairman and Members of the Special Committee to Study the Foreign Aid Program: It is a privilege to submit to the Special Senate Committee to Study the Foreign Aid Program the report of the on-the-spot survey, which I undertook at the request of the committee, to study United States Government foreign assistance programs in Central America and the Caribbean area. I am deeply grateful for the honor of having been selected by your committee to make this study. The ten countries in Central America and the Caribbean area covered by the survey are: Cuba, Haiti, the Dominican Republic, Panama, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, and Mexico. They constitute the area frequently referred to as Middle America. In addition, Venezuela was also visited and brief mention is made of it in the report. The period of time available for the survey (November 15 to December 18, 1956) was short, and with the exception of Cuba, Guatemala, and Mexico, it was possible to spend only two or three days in each country. Despite the short time available, discussions and interviews were held with many individuals, both public and private, whose views were pertinent to the purpose of the mission, to ascertain the effectiveness of foreign assistance programs in serving the national interest. The cooperation extended by the embassies, military missions and United States operations missions in every country visited is greatly appreciated. The interviews with the chiefs of state and other highranking government officials, which were possible in most of the countries visited, were most rewarding. Discussions with American businessmen, local businessmen, and prominent individuals in other fields were very helpful, as were talks with representatives of international organizations. I also would like to express my appreciation to the Departments of State and Defense and the International Cooperation Administration for the fine cooperation they extended to me. My assistant, Mr. Harold T. Lamar, of the Legislative Reference Service, Library of Congress, rendered excellent support on this mission. I also want to thank him for his fine contribution to the preparation of this report. Respectfully submitted. JAMES MINOTTO VII LETTER OF TRANSMITTAL PHOENIX, ARIZ., February 4, 1957. To the Chairman and Members of the Special Committee to Study the Foreign Aid Program: It is a privilege to submit to the Special Senate Committee to Study the Foreign Aid Program the report of the on-the-spot survey, which I undertook at the request of the committee, to study United States Government foreign assistance programs in Central America and the Caribbean area. I am deeply grateful for the honor of having been selected by your committee to make this study. The ten countries in Central America and the Caribbean area covered by the survey are: Cuba, Haiti, the Dominican Republic, Panama, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, and Mexico. They constitute the area frequently referred to as Middle America. In addition, Venezuela was also visited and brief mention is made of it in the report. The period of time available for the survey (November 15 to December 18, 1956) was short, and with the exception of Cuba, Guatemala, and Mexico, it was possible to spend only two or three days in each country. Despite the short time available, discussions and interviews were held with many individuals, both public and private, whose views were pertinent to the purpose of the mission, to ascertain the effectiveness of foreign assistance programs in serving the national interest. The cooperation extended by the embassies, military missions and United States operations missions in every country visited is greatly appreciated. The interviews with the chiefs of state and other highranking government officials, which were possible in most of the countries visited, were most rewarding. Discussions with American businessmen, local businessmen, and prominent individuals in other fields were very helpful, as were talks with representatives of international organizations. I also would like to express my appreciation to the Departments of State and Defense and the International Cooperation Administration for the fine cooperation they extended to me. My assistant, Mr. Harold T. Lamar, of the Legislative Reference Service, Library of Congress, rendered excellent support on this mission. I also want to thank him for his fine contribution to the preparation of this report. Respectfully submitted. JAMES MINOTTO VII security of the countries receiving such assistance and to overall hemispheric defense, and it should be continued. 2. It is recommended that machinery be established in the Department of Defense whereby small quantities of military equipment may be more expeditiously delivered to countries in Central America and the Caribbean area. Frequently, it appears that the attention given to other areas and the modest quantities of military equipment requested work to the disadvantage of the effectiveness of the program in Central America and the Caribbean area. Recommendations for technical assistance 1. It is recommended that technical assistance be continued on the country-to-country basis and that the present levels of technical cooperation be maintained.-Bilateral programs of cooperation with these countries in their efforts to develop technical skills are in the national interest. Such bilateral cooperation constitutes an important means of achieving mutual understanding and should not be relinquished for multilateral programs of technical cooperation. 2. It is recommended that the technical assistance program be placed on a more permanent basis.-Annual uncertainty over funds hinders effective planning and programing. More financial flexibility is not inconsistent with annual reviews and appropriations by Congress. 3. It is recommended that the participant program be expanded when feasible. The training of local citizens is a most successful part of the technical assistance program. It deserves continued support as a direct contribution to the furtherance of United States interests. 4. It is recommended that continued use be made of contract personnel.-Contractual arrangements with private firms and universities are proving highly satisfactory and should be used more widely. This is especially true of the growing need for specialists for short-term consulting and advisory assistance. 5. It is recommended that the position of Director, United States Operations Mission, be given more authority. In a few countries the Director of the United States Operations Mission is hampered by the lack of proper responsibility and authority. This lack of authority and responsibility applies both to the degree of direction from Washington and to the support by the American Embassy in the country. 6. It is recommended that more consideration be given to the deficiencies and delays in filling vacancies and new requests for technicians.-It is felt that the technical assistance program could be more effective if the International Cooperation Administration would give less time to directing activities in the field and more attention to the problems of personnel recruitment. Recommendations for economic assistance 1. It is recommended that economic assistance be given a larger role in foreign assistance programs in the area. 2. Specifically, it is recommended that the present policy of no development loans except for emergency conditions be less stringently enforced. By any standard, a comparison of aid expenditures in this area with foreign aid given in other regions is not indicative of the basic conditions prevailing in Central America and the Caribbean and the significance of United States interest in the area. The present policy is not consistent with the basic need for developmental loans in some countries and the interests to be served by the extension of such loans. |