Liberated Documents of the Council of Foreign Relations: New Imperial Strategy for Latin America
NACLA
Inside: The confidential minutes of CLOSED meetings of the Council on Foreign Relations that were sent to NACLA anonymously. With background and introductory material on the CFR and its role...
...American Smelting acquired interests in the area in 1940...
...Military conflicts in Indochina, the Middle East and dissension within its own borders are sapping the strength of the government...
...UNCTAD - The United Nations Conference on Trade and Development...
...By investigating the Council's history, programs, financial support, membership and leadership we can begin to understand the role it plays in imperialism's global strategy...
...interest when something goes wrong, it would be better to recognize the political issues from the start...
...This may or may not represent a division of the waters, but it is striking that all three spearheads of the revolution are no longer in the Cabinet...
...Commander-in-chief, Southern Command...
...Private transactions cannot be counted on to safeguard the public interest, assuming there is one...
...High Commissioner in Germany, and a partner in two of Wall Street's most influential international law firms, is certainly one of the CFR's most important members...
...For example, Henry Stimson wrote an influential article entitled "The Far Eastern Crisis" printed in the magazine Foreign Affairs...
...On the other side, Chile has recognized Cuba and the matter of recognition is a discussible one in Venezuela, Colombia, Ecuador, Peru, Bolivia and elsewhere...
...This is in contrast to the expected rate of return on new domestic investment, i.e...
...N aote Int'l...
...if not and it gets into trouble, fine too...
...And the United States is asserted to be taking sides, lending its support to one or another of these regimes as aginst others...
...embassy was used less rather than more in Mexico, and that he was cautioned about staying away from the embassy if he wished to do business successfully...
...Plank then inquired what percentage of U.S...
...Then, Walt Rostow got LBJ to modify this attitude.* Now there is an absence of "hard line" either on ideology or on security, and the outlook is more concerned with social and multilateral factors...
...Kissinger, does the administration, see a need to preserve the distinction, historically if not rhetorically well-established, between United States security interests in the Caribbean and United States security interests in the hemisphere as a whole...
...We need a set of priorities...
...And the answer I want to suggest is that, to the extent they see them emanating from any extra-Latin American source, they see them coming from the United States 3) It is my feeling that no Latin American government today really feels threatened by internal insurgency...
...This belief reflects a certain Rousseauesque element in their thinking...
...Philip Reed, CFR member and chairman of General Electric, hinted at the real objectives of the Marshall Plan when he testified about the Marshall Plan before a House Committee on Foreign Affairs...
...doubted that the U.S...
...4) Private foreign investment in Latin America is not homogeneous...
...No particular goal had been set up for the group, such as a paper, book, or confiden- tial statement for the Secretary of State, but neither had any possibilities been ruled out...
...He wondered if he was too pessimistic about Chile, but felt that the country was going to become a MarxistCommunist state such as exists in Central Europe...
...This was unacceptable to Anaconda, but Anaconda became convinced that the problem could only be approached on a mixed company basis, as this seems to be the future form of the mining industry in western South America...
...rf Anaconda Mining C di 1 ' Do's...
...Entitled Containment, the article had a great influence on subsequent policies...
...This further provoked the anger of the Latin American nations, who perceived a threat to their sovereignty coming from the United States.- 19 - marily to facilitate the movement of Chilean troops in an anticipated conflict between Chile and Peru (this was told me, of course, before Allende's election -I doubt that that particular belief is being widely promulgated today...
...The central concern of the discussion groups is how the public and private sectors of the United States should respond to these confrontations in order to protect "national interests" and maintain a secure climate for investment...
...2 1, 2, David Green, The Containment of Latin America (Quadrangle Books, Chicago, 1971), p. 4, 5, 130...
...I do not want to be misunderstood...
...From 1915 through 1969 the net return on Anaconda's investment by normal accounts was 9.3 percent in Chuquicamata and 4.76 percent in Andes...
...2) Study and Discussion Groups: The documents that make up the bulk of this Newsletter come from CFR "Study and Discussion Groups," which are closes' and off-the-record...
...the third and fourth cover the specific cases of Peru and Chile, and various responses are suggested...
...Krogh suggested that someone lay out the salient differences between 1960 and 1970...
...European Affairs Asst...
...troops, attempting to legitimize the invasion...
...However, it was not until 1927 that the CFR began its ascent to power...
...The Carnegie Corporation made a $75,000 grant in 1970 to be continued every year for the same amount until 1973...
...the British, for example, have indicated that they will not participate unless some instrumentality of the U.S...
...policy, to consider the factors that involve the United States in Latin America, and to examine both bilateral and regional problems of interest to the United States...
...policy after Castro's takeover...
...Sec...
...Eaton implied, and felt that hypothesizing was unfair, but Mr...
...investment in relation to Latin America in the future, looking at Peru, Chile, and beyond...
...The "second emancipation" of Latin America, however, is clearly and everywhere underway...
...Given the uncertainties, Mr...
...Quigley felt, Chile had a good fair deal under the Frei decrees, by which it would eventually have received more money than they are getting now...
...There is no obligation to bail a company out...
...Vaky thought that * Walt Rostow was a special advisor to President Johnson and is now a professor of economics and of history at the University of Texas...
...Dominguez, Jorge - No information available...
...Rockefeller suggested that the Council should extend an invitation to the Council of the Americas to join the group officially in the Fall, as he felt that they have a great deal to offer in the field of Latin American problems...
...and 2) the institutional framework of U.S.Latin American relations...
...De Rosso said that the danger is there in any case, that any resource that lies outside the U.S...
...government thought to be called for by the national interest...
...former ambassador to Brazil, CFR IV,V...
...David Rocl:efeller, new CFR Chairman, set-up two organizations in the mid-sixties whose focus is U.S...
...set up as an advisory board on development in Latin America, which lost authority due to a lack of capital.- 11 - THE LIBERATED DOCUMENTS...
...It took a merger with a New York City "gentlemen's club"organized to bring foreigners to the U.S...
...13.Richard Barnet, Intervention and Revolution: The United States in the Third World (World Publishing Company, 1968, New York), p. 227...
...government calling for a decision about pur* Herman Kahn is a nuclear arms strategist at the Hudson Institute thinktank.chasing technology would call forth a surprising amount of interest...
...but my guess, based upon acquaintance with him, is that he expected the students to blink in astonishment at the question, then to blink seriously about its implications, and to write down something equivalent to: "Very little...
...De Rosso observed that multilateral organizations were desperately looking for technicalities such as debt-repayment capacity as a way to get off the horns of this dilemma...
...In Brazil, publicly and privately financed tropical research is being carried out...
...He thought bution to an international institution, the funds do that while we prefer democracy, it is obviously a relabecome depoliticized...
...1967/68...
...8. Ibid...
...former ambassador to Colombia, CFR I. *These numbers indicate which meetings were attended by each participant...
...The government is now set on nationalization and resorted to constitutional amendment because this was the only way they could expropriate these properties and at the same time deprive the expropriated party of its legal right to recourse to the regular Chilean courts for review and final adjudication...
...Murden and Company, Inc., CFR V. Muse, Martha T. - Tinker Foundation, CFR IV...
...patents, had built up its technical capacity and developed its people, that acquiring patents had been the first step toward technical sufficiency...
...55-'61 Lockheed Aircaft-dir...
...Rockefeller agreed that if an Indian revolution should occur the whole Peruvian situation would change...
...investment: if a company makes money, fine...
...Perhaps the whole region, from Guatemala southward and outward into the Caribbean, would be either communist or seething in chaos...
...In the field of security, while there is no immediate threat from outside the hemisphere, there possibly could be one...
...at the Paris Conference that approved the plan, Douglas rallied more than enough support, and the Plan was approved by a majority of the 16 European nations attending...
...Levinson asked whether this did not illustrate and underline the point that the outcome of the negotiations depends not upon technicalities or technical questions but upon the political position of Allende...
...Penetration of Government Begins: The Coming of World War II The coming of World War II provided the CFR with its first real opportunity for action...
...In February 1968 the provisions of the Miningr Act were updated, and over the next two years Mr...
...interests are not incompatible with social development in Latin America...
...Mr...
...Alexander observed that there exist special tropical resources and tropical markets in Latin America which remain to be discovered...
...policy on all issues but Latin America, because the present administration has no policy in the matter and moreover makes statements which are insulting to the ideas of "mature partnership" and "dealing with governments as they are...
...In the security sphere, the Latin Americans are defining interests and threats rather differently, I think, than they did a few years ago...
...Oliver disagreed, saying that no country 11,000 kilometers away from the United States is vital to the security interest of the United States...
...Among these were multilateral institutions, the future of the bilateral relationship, and the European issue...
...He suggested the establishment of research and development facilities to discover the special features and potentialities of Latin American economies...
...He thought that the U.S...
...nalsis-Ch...
...McCloy remarked back then, "Whenever we needed a man we just thumbed through the rolls of the Council and put through a call to New York...
...to back them up and bail them out in a crisis, government should be in from the beginning, having a hand in the form a business enterprise takes and thus guarding against political trouble...
...Not knowing what to expect from a specific country, the United States is in a weakened position, and the people of Latin America, in different ways, are beginning to assert their sovereignty and independence from U.S...
...With the adoption of the new Article 56 of the Mining Code, the civilian government f Belaunde Terry had exerted pressure to bring about a bilateral agreement...
...The importance of the situation in both countries is obvious...
...as dictator he abolished all labor unions, student organizations, and censored the press...
...d. Carnegie Crp.-dir...
...The New York Times, September 30, 1971...
...trustees ohn J . McHlov -U _ _1_1 I_-9A Peek Be Between December 12, 1970 and May 12, 1971, the Council on Foreign Relations held five confidential discussion meetings on United States-Latin America relations...
...of Standard Oil of New Jersey...
...Gordon thought that it is not self-evident that politicizing each mining deal is in the best national interest...
...He mentioned John Foster Dulles' "moral approach" to Latin America and said it had failed...
...The marginal masses themselves are not a political problem, but the dissident vocal elite who are the self-appointed spokesmen for the marginal masses create the instability...
...The CFR's recommendation on Cuba stated: "Given our present sugar quota arrangements...
...Levinson's nor Mr...
...Rogers agreed that the group should nail that point down, and consider whether the kinds of aspirations held for Latin America -- economic and social development -- are within the range of possibility in the next ten years, or ever...
...IMr...
...Bronheim asked if nationalism did not pose the risks it brought in Europe, but Mr...
...Referring to the Velasco statement about U.S...
...Costa Rica, which is democratic, is unimportant...
...However, Mr...
...If we had not provided Latin American governments with the skills and equipment needful to enable them to handle their insurgency challenges, those governments might well have continued in their traditional attitudes of political and military dependency upon us...
...This Amendment was added to the Foreign Assistance Act of 1962, and called for the suspension of foreign aid to any country which nationalizes U.S...
...If this group could not produce some constructive thought on it, he doubted that any group could...
...Since that time, the flow of U.S...
...Mossadegh, a nationalist, rose to power in Iran and immediately seized the British-owned Anglo-Iranian Oil Company...
...Quigley said that the Chileans had participated freely in the negotiations...
...By 1942, this entire apparatus took complete control of the government's most strategic advisory group of the time, the State Department's Postwar Planning Problems and Advisory Council...
...Prudential Life Ins.-dir...
...iCU.nhia Broadca~~~~~~~~Sg...
...domestic situation must be taken into account in any discussion of U.S...
...We may find that it differs considerably from country to country...
...investment was taking a huge risk...
...Argentina, Brazil, Chile, Uruguay and Paraguay would be the most difficult to integrate because thev were exporters of products "heavily competitive with the agricultural exports of the United States...
...national interests...
...Nor, should the capability be achieved, would these Latin American countries' neighbors feel seriously threatened by it...
...to address the CFR...
...CFR I,IV,V...
...53-'65 Columbia U.-trustee Johns Hopkins l.-trustee C. hd...
...John N. Plank Brookings Institute Keynote Speaker, CFR Document 2 ARRSSING Council on Foreign Relations Meeting of March 1, 1971 WESTERN HEMISPHERE SECURITY: LATIN AMERICAN AND UNITED STATES ASSESSMENTS Remarks made by John N. Plank Over the years I have taken great comfort from William Strunk's admonition, preserved for us by E.B...
...Participation in equity and longterm copper supply contracts with the investing companies are involved...
...domestic scene would be a conditioning or controlling factor, regardless of what this group or the U.S...
...interests in the region, but within an international context...
...I think it is his view that serious strategic challenges to the United States must be seen to emanate directly or indirectly, from the Soviet Union, not from any Latin American country...
...Dominquez pointed out four problems for consideration: 1) U.S...
...Information Agency Sec...
...The results of the new agreements...
...He noted that some people point now to the increasing ineffectiveness of U;S...
...Philip Trezise Samuel DePalma Paul Volcker John Petty Arthur Burns Paul McCracken Gen.Wm.Westmoreland Charles Yost Glenn Seaborg lenry Loomis-Dep.Dir...
...Krogh, returning to the question of possible retaliation or bargaining, asked whether there were any Chilean investments in the U.S...
...policy is criticized from both sides...
...Something close to civil war in some countries is very likely, and some "Vietnams" could develop...
...Feldman said, he was not convinced that this would have the desired effect...
...Late in 1966 serious negotiations began, and a basic contract was developed...
...Because none of these assumptions holds true, U.S...
...Quigley proposed that private Peruvian capital should account for 25 percent of the operation, and that a consortium including the World Bank and other international institutions should be set up...
...As to Brazil, who knows who the next general will be...
...press but was picked up widely in Latin America...
...Eaton asked what will be the enforcement agent for such a code...
...Krogh, turning to the idea of the "demonstra- tion effect," said that the effect could be the reverse of that suggested by Messrs...
...and rising copper prices, the net return in 19-8 and 1969 was quite good, but the earlier low net rates were forgotten by the Chileans...
...We have tried to bring Latin Americans forward with private investment...
...Latin America is an important source of raw materials...
...National Security Council (1969), CFR I.V...
...Gordon observed that the notion of an impartial body to judge, i.e...
...and this perception is not restricted, if my knowledge serves me, only to the countries of Caribbean and Central America...
...The taxing power of the governments has been increased as have the cadres of labor and management...
...All names below are CFR...
...S I Fno...
...only at the CFR can the president of General Motors receive a briefing from a Harvard School of International Affairs Asian expert - like Henry Kissinger...
...10 for institutions...
...national interests...
...De Rosso said that he was not sure that the U.S...
...in Peru, because was going on and informed...
...In short, it is no accident that the CIA's leadership, government agencies, and "private" organizations dealing with foreign affairs are closely linked to the corporations with the largest stakes in the Third World...
...Barlow observed that it is not necessary always to speak in military terms, that if we had a good Latin American policy armed conflict might be obviated...
...participation will have to be in the form of direct financing or loan guarantees...
...Rockefeller concluded that the Peruvians, while they say that they want foreign investment, have not developed a policy that makes investment there attractive...
...Campbell brought up a question on behalf of Mr...
...There has been some debate about this issue: some think investors have too much influence in the formulation of U.S...
...14.Council on Foreign Relations, Annual Report, 1970.- 7 - Four CFR Administrations The .olowinz chart contains a sareplin of tIlh 'a1n government positions that have een leld h members of the Coun.i...
...Gordon felt that Mr...
...If the U.S...
...should not lay down standards for investment and negotiation in the future...
...Olmstead predicted that if Allende's government succeeds, it will take full credit for success, while if it fails it will blame the United States...
...is generally acknowledged as the source of the technology which Latin America wants...
...At the time Harriman was a limited partner in the Wall St...
...Neither are the smaller communist states like Yugoslavia, which has talked of the possiblities but would have to seek the necessary finance abroad...
...We are moving * A right-winger who was with the U.S...
...Chace thought that it comes from the desire of the generals to vindicate themselves compared with Belaunde...
...military missions in Latin America...
...First, treat Mexico as a serious and mature power...
...We should give up the myth that negotiations are only private and then politicize them later...
...He asked how U.S...
...Vaky suggested that one might find big-power competition such as in the Middle East now ten years hence in Latin America...
...Barber, Archibald, and Quigley...
...We have important interests in Peru that must be safeguarded, but it is difficult to know what reaction is best in each individual case in relation to the whole...
...Place (recently selected as the new president of Anaconda Mining...
...Gordon asked Mr...
...Barber said that his own perspective was that of a producer of raw materials...
...Chace believed that Allende views himself as a historically important figure but that Chile is not a likely model for other Latin American countries, though it may be for Italy...
...Mr Rogers noted that the Latin Americans seem to think that they must buy U.S...
...Plank observed that the "hostage" situation of the mines in Peru lends a political implication to negotiations...
...4) There are groups who continue to talk about a threat from Cuba...
...That they have lost confidence in us I think is evident...
...Chace said that his impression from talking with many Peruvians was that their government is determined to proceed along the route they have taken toward industrial development and agrarian reform, etc., even if they do it badly...
...Krogh suggested that perhaps we could relieve Mr...
...Barber added that there was the danger that advertising Anaconda's presence might have boomeranged...
...corporations in Latin America...
...The role of the army is also a question...
...Political Aff...
...Anaconda offered to sell Peru the equipment on the property ad to release the technical personnel, etc., but it refused to surrender the technical data and studies that had been developed by the company...
...What remain are the need to "do the right thing in the world" and the problem of the marginal masses in Latin America with their need for health, education, etc...
...It will be in everyone's interest to develop some code of behavior...
...There is also the fishing rights dispute, and the problems have arisen for many U.S...
...Rockefeller remarked that Brazil, by tax incentives, has directed foreign investment and national investment...
...Vaky questioned whether the Chilean cash was as stark as Mr...
...corporate interests in the hemisphere...
...Chace to discuss Chile and Peru...
...Because of the growth of nationalism, he thought the ubiquitousness of U.S...
...we do not have to prove to ourselves that there is no monolithic communism...
...Cron Zele rp.-dir...
...Gulick houses the U.S...
...Rockefeller commented that this may be the first and best step toward economic development...
...Eaton asked Mr...
...Oliver asked about the question of social morality and cited the cultural problems of all present day societies...
...He felt that the group was about at midpoint in its discussion, and that two or three meetings were needed to bring the discussion full circle...
...What does the CFR Do...
...The CFR is a prime example of such a "private" organization...
...What I want to convey is the sense that as between the four regimes of Peru, Chile, Argentina and Brazil there are deeply divergent conceptions of what constitutes the "good life," a properly ordered polity, etc...
...In summary, Mr...
...How far should we go in trying to assist change...
...Vaky asked: What are the practical consequences of an ideological test for U.S...
...Under new decrees of January of 1967, Anaconda invested in three mines...
...Feldman remarked that he was familiar with the Anaconda story only in general terms, and that official U.S.-Peruvian relations were mainly involved in the IPC case, which is "closed" as far as Peru is concerned, and the Grace sugar plantation problem, for which hearings are to be held...
...Providing the leadership of the latter group was McGeorge Bundy.-6(3) Thomas J. Watson Meetings: The simple and concise purpose of these meetings is to acquaint CFR members with leading international government officials...
...Archibald's group presented several proposals in accordance with the Code, but none resulted in a final agreement...
...On its own Latin America cannot go anywhere -- it is a "strategically lonely place" -- and if it begins to go somewhere on the leading strings of some other great power (the USSR), then the United States will deal with that other great power, not with Latin America...
...These meetings usually include the most important figures from the worlds of high finance, media, academia, government and the military...
...should indulge him or Allende for their own individual purposes...
...Eaton against asked about the concern that the Chilean examples will be followed by widespread default in Latin American, and questioned what line the development agencies would take in that event...
...LL IDB less political than that given through a bilateral program...
...Szulc remarked that he was able to write for the New York Times about U.S...
...Quigley's contact with Ambassador Korry during the negotiations with Frei was necessary...
...Second, I can say that whatever may have been the hemispheric situation during the Eisenhower-Kennedy-Johnson era, the hemisphere is clearly "lost" today...
...They might consider France and Italy more important to them than Chile, so they would caution Chile to be prudent vis-a-vis the United States and thus Moscow might prove to be a conservative force...
...Grace & Co., International Telephone & Telegraph Co., and the Rand Corporation...
...control of Chilean copper precludes our access to that copper...
...Leo D. Welch, CFR member and Treasurer of Standard Oil Co...
...The final draft made it Anaconda 25 percent, Dow 21 percent, Peruvian government 49 percent, and IFC 5 percent...
...Olmstead asked whether Vina del Mar had dealt with- 15 - myth or reality* Mr...
...The countries of Latin America have reached a new atage of economic development and of political action...
...Barber to begin on the subject of the experience of American Smelting and Refining in Peru...
...To a local revolutionary it is understood, this is a source of dismay or disappointment, rather than one of relief...
...He said that at the moment, in an effort to show the world that Peru is worthy of investment, the government is hanging its hat on Cuajone...
...The stated policy is for development, but practice negates this...
...Even if the President were to make a specific avowal never, under whatever provocation, to intervene unilaterally in a Latin American country, Latin American fears would persist...
...Just as he wished that we could develop a better measurement than GNP of social well-being, he wished we could have some rating system to view U.S...
...Dep...
...Thus far, it has never been invoked by the United States.- 27 - Council on Foreign Relations Discussion Meeting Report THE UNITED STATES AND LATIN AMERICA Fifth Meeting: May 12, 1971 Digest of Discussion (This digest has not been edited by the participants...
...What do we have...
...Petty said that formulating the "right" policy may be impossible...
...2) Nixon says he does not wish to encourage U.S...
...invested in the Third World (from $5 billion in '45 to $55 billion by '68), the more the U.S...
...until 5:00 a.m., with technicians available in another room...
...Vaky himself * Senator Javits is the key representative of the CFR in Congress...
...Agency for International Development...
...Krogh remarked that the guests present at the previous meeting had thought it fair and quite justified to hypothesize pessimistically from the situation in Chile...
...Since the Latin Americans no longer count upon us, no longer look to us for inspiration and guidance, no longer regard ours as the society that at some stage and to substantial extent they would like to emulate, they are freer than they have been in the past to define their own problems in their own ways and to devise their own remedies, make their own mistakes...
...Mr...
...Feldman continued that the State Department is often accused of having no policy at all, but this is an oversimplification...
...He wished the group to consider whether or not this is true...
...has seen fit to act with restraint...
...The greatest internal problem is how to make progress, and they are frustrated...
...Eaton proposed that the two most fundamental problems with Latin America are: 1) the U.S...
...Between 1927 and 1947 the CFR received about one-third of its total income from the Laura Spellman Memorial Fund, 5 established by the Rockefeller family...
...The best prevention for this problem, insofar as the United States can have any influence, is to bring the Latin American countries into closer relationships with the Western countries...
...De Gaulle's idea of mixed capital-worker shares in industry did not work in France, but the generals feel that after ten or fifteen years, the workers in Peru will own 51 percent of the companies in-which they are employed...
...Levinson was absolutely right, that recent experience in Costa Rica*leaves no doubt that the feeling is devel* President Velasco is the nationalist military leader of Peru who seized power in 1968...
...government in their negotiations with private enterprise...
...policies in Latin America...
...The same has happened in our relations with the Latin Americans so far as foreign investment is concerned...
...American Expres Co.-dir...
...Moreover, Latin America is increasingly important to the United States from the security point of view...
...2. An annual off-the-record dinner meeting for the presidents and chairmen of the subscribing corporations...
...public seems to be receptive to the idea of a Chile which was left to be socialist or communist if it so chose...
...EatonAs pessimism for the short term...
...if the person in power finds himself in a political cul de sac, he will emphasize nationalism, and our present optimism will prove false...
...government, U.S...
...Several participants, such as Alphonse De Rosso from Standard Oil,claim that the Nixon administration has not responded adequately to the growing nationalism in Latin America and that the government should take a stronger stand with business against expropriation, even to the extent of withholding aid and loans from a country that has tampered with U.S...
...Rogers adjourned the group for the summer, and no meeting date was set...
...7) A nuclear capability of some sort is within the technical capacity of Argentina, Brazil and Mexico...
...nobody thinks that way any more...
...If the nited tates decides that it wants to stay in Peru With such a big investment as is necessary in this case, the way to do so may be by a consortium including companies in consuming countries, and with U.S...
...force, the imperial rulers woke up to find an enlightened nationalist military in Peru...
...President of the CFR Center for Inter-American Relations...
...and nothing that is known indicates that the insurrectionaries are at all optimistic about their chances...
...This was a sort of coup d'etat for the CFR...
...Vakey, Viron Peter - Georgetown University...
...Indeed, remaining obscure seems to be official CFR policy: Between 1958 and 1968 the CFR was not listed in the New York Times Index, the Reader's Guide to Periodical Literature, the Social Science and Humanities Index, and the Public Affairs Information Service.2 President Kennedy (CFR member), like many of his predecessors, knew where to look for potential cabinet appointees: out of a list of eighty-two names submitted to him by his aides for possible selection to his State Department, sixty-three were CFR members...
...government is wavering as to whether it will take up the cause of private investors...
...One strategy might be to associate companies in the principal copper-using countries as investors, so that if the Peruvian government wanted to move against the investment it would be forced to move against all its principal customers...
...the bitter complaints by insurrectionaries in other Latin American countries of Fidel's having betrayed them by failing to give them assistance...
...Levinson thought that recognition as a form of influence on a Latin American regime has been discredited, but that U.S...
...Security questions are not much to my taste, partly because by natural inclination I tend to take a fairly lofty, un-Hobbsian view of human nature and wish to believe that concern for security, particularly national security, reflects a falling away from man's proper spirit and promise, partly because I am fully persuaded that an over-concern for security on the part of the United States has seriously damaged United States-Latin American relations and has led us into the present unsatisfactory, frustrating, miserable phase of those relations...
...In the social field -- and here perhaps is the underlying issue -- all should agree at least intellectually that merit should govern upward mobility...
...De Rosso pointed out that if the U.S...
...We should not give between multilaterality and bilateral political considerbetween multilaterality and bilateral political consider- priority to such political questions but rather should ations...
...Director of CFR Center for Inter-American Relations, CFR I. Butler, William E. - Chase Manhattan Bank, CFR I,IV,V...
...ownership to get U.S...
...Martin,Jr...
...Quigley then spoke about Anaconda's property at Cerro Verde outside Arequiba, Peru's second largest city...
...ideas and ideals, evident both in the United States and in Latin America...
...He said that Chile is to have state farms and collectives...
...This may be wrong...
...Jova, Joseph John - U.S...
...Cuba's economic failures, trumpeted to the hemisphere by Fidel himself...
...This country should articulate its beliefs and be an example of them...
...Chace observed that Allende had commanded a lot of personal support, but the questions now are whether the coalition will hold together, and how much of a pragmatist Allende is...
...Rockefeller noted that this concept is in line with Herman Kahn's*idea that this is the post-industrial age...
...I would assume that most Latin Americans, in whatever country, of whatever group, would believe that the United States would not * An inter-American mutual defense treaty was signed in Rio de Janeiro in 1947...
...investment essential to more rapid development of Latin American and other countries...
...Quigley felt that the U.S...
...Spcl...
...If the U.S...
...a Geneva-based group that negotiates the international set of rules aimed at promoting trade among non-Communist countries...
...At the O.A.S...
...The fact was, despite all these obstacles, that the government did want to get the contract negotiated, and it was...
...Plank asked how infinitely expandable Japanese capacity is, and whether they are really in any more of a position than the Soviets to make major investments in Latin America...
...As it is, the policy is confusing...
...can best cope with the major problems confronting the administration of the empire...
...He suggested that it will be a few years before free elections can be held, but that in any case the gravitation of power to the left is not reversible...
...Program and Purposes: Studies on Foreign Policy 1970-1971," (Council on Foreign Relations, 58 E. 68th St., N.Y., N.Y...
...Construction began in April 1970...
...government has advised Allende to negotiate instead of impose, and to consider nationalizing equity rather than assets, which would leave third-party obligations intact...
...We have no security interests in Latin America, except in Mexico and Panama...
...Sedwitz, who was in Chile ten days ago, found that the Chilean government fears failure and isolation...
...Asst...
...Through the Corporation Service a multinational giant's representative can be briefed about investment climates in any part of the empire...
...business firms, notably General Motors and Kodak, have by and large accepted the Mexican conditions laid down for production, etc., and operate on a basis of mutual respect which amounts to equality...
...the overt evidence that Fidel's hemispheric revolutionary activity is today largely confined to speechifying -- all of these have led to a continuing down-grading of the Cuban "threat...
...Oliver suggested that it is fruitless to look at hypothetical situations...
...Note to subscribers: Beginning with this issue, the NACLA NEWSLETTER will be known as NACLA'S LATIN AMERICA & EMPIRE REPORT...
...In my view, the big changes that are perceived by all groups in all parts of the hemisphere -- although differently interpreted and evaluated by different groups and in different places -- are: 1) No substantial across-the-water threat is seen...
...Barber said that he wished to discuss mining in general and Peru in particular, so as to provide a setting for the remarks of Messrs...
...Perhaps the private profile in Latin America should, like its public counterpart, be lowered...
...Krogh asked.what Anaconda is doing about the situation at the moment...
...Its elements include 1) economic and balance-of-payments factors, and 2) the basic integrity of the party wishing to borrow...
...Other Council members-through their positions in business, the media, or the academic world--are likewise deeply involved in international affairs...
...In the wake of this invasion the United States attempted to set a permanent multinational military force that would be on call to intervene in similar situations...
...former ambassador to Honduras, CFR I. Krogh, Peter F. - Georgetown University, CFR I,IV,V...
...Rockefeller suggested beginning with the issue of a redefinition of the roles via international negotiations or conferences...
...Campbell asked those who had recently negotiated with the new governments in Peru, Bolivia and Chile what impressions they had of how these leaders see the alternatives ahead of them in managing their mines, whether by themselves, with European help, or whether there have been any threats to "turn to the other side...
...On the last point Mr...
...Eaton said that one could not generalize, that this particular issue poses real problems of debt-repayment capacity...
...Oliver asked if it would serve amic and political aspects of a country's life...
...Let us now change our point of view and look at the hemisphere with an eye out for security threats that may be perceived from the United States by official North America...
...See Box on the CFR and Latin America...
...corporations all combine to threaten the billions of dollars U.S...
...Vaky agreed that it is a good idea for the group to reconvene for more discussion and noted that so far nothing publishable had been pro- duced...
...This pattern of diversity set the tone of the CFR's development into what became one of its primary sources of power: its ability to centralize under one roof bankers, international lawyers, corporation heads, government officials, and leading academics for the CFR's programs and studies that lead to policy recommendations...
...domestic issues may influence our foreign policy stance...
...He wanted to see how sirilar and diverse these inventories would be...
...R. M ROOM porate elite to take a new look at Latin America...
...Returning to the Soviet-threat idea as a factor in U.S...
...For a fee of from $1,000 to $10,000 (depending upon the size and overseas operations of the company), a corporation receives the following benefits for subscribing to the CFR: 1. A twice-yearly, two-day seminar for business executives designed to brief the representative of the subscribing corporation on the most sensitive areas of foreign affairs...
...Alexander stated that he was perturbed by the constant references to fair play and "being nice...
...They were all deeply disappointed about the conclusions of the Paris Peace Conference and the decision of the U.S...
...The problem lies in would do nothing damaged our case...
...the acknowledgment, also by Fidel, that the program of "moral incentives" is not working well...
...Vaughan said that national interests do not coincide with security interests but are parallel to them...
...In 1929, the Council received as a gift from the Rockefellers the site of its present headquarters: the Harold Pratt House at 58 East 68th Street...
...The Americans, for the most part technical advisers who accompanied President Wilson to the Peace Conference, included Allen Dulles and his brother John Foster Dulles (the former became Director of the CIA and the latter became Secretary of State under CFR member Eisenhower), Archibald Coolidge of Harvard, Clive Day of Yale, James Shotwell of Columbia, Tasker Bliss, Christian Herter, and Hamilton Fish Armstrong, among others...
...Feldman agreed...
...He set up an "ideal" set of interests which theoretically might be said to apply to both the United States and Latin America...
...Oliver agreed, saying that the primary defense perimeter of the United States falls far short of internal change in Brazil...
...He said that nobody has yet learned how to deal with the "monster," the multi-national corporation...
...Quigley would have multilateral organizations like CIAP take ethics as well as economics into account...
...Rockefeller's earlier remark that a company should forgo U.S protection and get out on the best terms from a bad situation, expressed concern abou the "demonstration effect" in other countries over the next few years if Chile and Peru get away with uncompensated expropriation...
...Thus the economic inter-relationship of the United States and Latin America, including the important role which foreign private investment plays in development, can be viewed positively...
...interests are not incompatible with social development in Latin America...
...The balance-of-payments constraints, etc., obviate development policy...
...it is wrong for the United States to pass judgment with practical consequences for its Latin American policy...
...he had likewise kept Ambassador Belcher fully informed the diplomat's job was to know what they were themselves eager to be kept Mr...
...it reveals the extent to which the ('FR has bpcone incornoo'rted into the gRvernment...
...The journal has a circulation of 70,000 and is aimed at a very specialized audience: the people who make policy...
...Wel...
...To the extent that they affect public opinion in the countries to which they go, they spread fear of Chile as a security issue...
...Perhaps the preeminence of the security issue led to the social factors being overlooked...
...companies joined in a consortium, and the Eximbank provided a loan...
...This proposal is opposed by most Latin American countries but is supported by the United States.- 12 - prone, crisis-prone international climate...
...He observed that so far the initiative for discussion has come exclusively from Latin America...
...whether British Honduras feels threatened by Guatemala is worth speculating about: Guatemala is not fully comfortable in the shadow of ever morepowerful Mexico...
...The normal international standards of justice and fair play must be lived up to...
...Perhaps U.S...
...Petty said that when a donor country makes a contributon to an international institution, the funds do story, and we could not add much to it here...
...Invest...
...For Latin America, these documents have far-reaching implications because they contain the seeds of a new Inter-American policy...
...Nevertheless, wha looks like serious disagreement is really nothing more than a tactical debate over what is the best way to maintain U.S...
...He pointed out that the AngloSaxon spirit of fair play cannot be assumed to be an effective ethic among people who are not Wasps...
...Because of Vietnam people are turned off using force and making external commitments...
...corporations that invest multi-nationally must renounce their claim to U.S legal protection unless it is specifically provided for in a guarantee...
...of Defense Under Sec...
...There is a danger in exaggerating the extent to which the Marxist-socialist governments will be linked to the Soviets...
...First, I can say -- in paraphrase of something often said with regard to China -- that the hemisphere was never "ours" to lose, and that that whole cluster of notions comprised by the "Western Hemisphere idea" is a mistake that worked to the detriment of the United States and Latin America alike...
...This is in sharp contrast to other resource-deficit countries, notably Japan and Germany...
...That statement is probably correct, irrespective of what Latin Americans we're talking about: the Latin American revolutionary perceives a different set of security interests and threats than he did five or three years ago -at least the components of the set are differently ordered than they were then...
...New Century Publishers, New York, 1948), p. 48...
...However, in Latin America there is a recent pattern of expropriation of mining investments...
...Copyright Q 1971 by the North American Congress on Latin America, Inc...
...Eaton's remarks...
...Management must live in the country where its investment project is...
...elite...
...Latin America cannot be treated as a whole...
...government posture in all this, and re- in Chile are complicated by negotiations in Peru, and viewed the recommendations made by the Department and vice versa...
...But we have to face the question: How important is Brazil to us...
...12.Kraft, op...
...One is more likely to get a leftist military takeover...
...The CLA's 200 corporation members account for over 80% of all U.S...
...This answer seemed overly optimistic...
...The Dominican Republic was invaded in April, 1965 by the U.S...
...had said that it would not stand behind the agreement that was being made, that agreement might not have been reached...
...Qigley said that there had not been any of this, and Mr...
...State Department sent a cable to our ambassadors in creditor nations instructing them to advise the governments concerned the Washington had no fficial interest in the negotiations...
...They met in the evening, sometimes from 8:00 p.m...
...the Defense Ministers of Britain and West Germany...
...He said that if they do fail, there will be radicalization in Chile and a security problem for the United States...
...At this point, the U.S...
...congressmen think, the United States has a security interest in the Caribbean, it must act accordingly and not estrange the states in that region...
...It would also be a good idea to look at some of the basic elements in U.S...
...of ting Refg-dir...
...We must define U.S...
...Of particular concern to U.S...
...The process of change in Latin American society will carry with it changes in the status of U.S...
...Szulc asked why there should be more optimism about stability in Peru than in Chile...
...in fact, U.S...
...Jova said in a way we have already done this...
...The U.S...
...1962, 1967, 1971 "There is a constant flow of Council members from private life to public service...
...5) state that treatment of investments should be a criterion for aid, and that economic aggression will not be tolerated...
...Sedwitz repeated that he thought nationalism should be allowed to flower...
...Oliver, citing Vina del Mar, said that the true Latin American expectations regarding the United States had been modified out of disappointment...
...This persists to the level of governor of a state, but ceases with paramount national issues...
...He said that it is not unsatisfactory to do business with the Marxists once a basis of export and import conditions has been established...
...I think he would like to see Latin American societies stay reasonably close to patterns of non-socialist, free enterprise, pro-American, anti-Communist lines of development...
...The answer is being sought in highlevel meetings like these...
...supervises all U.S...
...Levinson said we should know why some countries are more important than others, and what exactly is the U.S...
...De Rosso replied that something like GATT is necessary, in which violaters feel bound to justify and redress their transgressions...
...The U.S...
...Whether Fort Gulick** will continue to play its accustomed role I don't know...
...Quigley replied that the multilateral idea has many virtues...
...perception of its own national interests, as a whole Americans do not consider Latin America very important, especially when compared with Russia, Western Europe, or East Asia...
...He thought that the meetings could resume in September or October, and suggested that some meetings be held in Washington, in view of the fact that so many group members are there...
...This was in violation of the Chilean contract law concept, which had been tested in the Supreme Court of Chile...
...business has invested in Latin America...
...De Rosso challenged this view, and asked why Mr...
...Rogers opened the meeting and announced that Messrs...
...Quigley, drawing on his negotiating experience with a number of governments since 1959, said he had noted a distinct change in the whole picture after the IPC case...
...for technology...
...Rockefeller said that now Brazil is large and successful enough not to have to resort to nationalistic and "anti-colonialist" pressures in an effort at selfprotection (except in the case of petroleum...
...Barber then described the situation of the Toquepala mine in southern Peru which, is one of the largest and most successful investments...
...of New Jerseyreflected the politics of that period when he said in 1946, "The United States must set the pace and assume the responsibility of the majority stockholder in the corporation known as the world...
...It was not until Frei's advent that parties reached agreement and a memo of understanding was endorsed by Frei and passed in Congress...
...Levinson pointed out that the three ministers-of Industry, Agriculture, and Education--with whom Mr...
...The Shah (who visited the CFR last year as a speaker) eventually gained control of the key Middle Eastern country by use of his secret police, which were trained with U.S...
...Vaughn suggested that we have become much less involved and perhaps have come to a sort of United Nations policy on Latin America...
...however, it escapct political solution...
...Economically it is, but otherwise it is not...
...Each group was comprised of about 12 experts, leaders in their fields of finance, politics and diplomacy, academia, law, and governmental organization...
...The Rockefeller Report states that the United States has allowed its special relationship with Latin America to deteriorate, against U.S...
...Chace said that when he asked the Minister of Industry who would manage all these companies, the reply was that the present management would be content to continue...
...Rapporteur - Sheila Low-Beer...
...Alexander suggested that a regime is stable until it is overthrown, and that according to this idea Uruguay is a model of stability...
...He served as a member of the Inter-American Committee on the Alliance for Progress from 1O64-1l66.- 14 - Mr...
...This seems to be a paradox...
...Peri;api certain policies could be developed which might be applied to specific situations in Latin America...
...If you feel it is important for a country to be democratic to merit aid, you can pick your friends, unless you have a vital security interest...
...The United States, as a demo-- 13 - cracy, finds it difficult to aid repressive regimes, but it must not preach...
...In addition, six of the seventeen Standard Oil of N.J...
...action...
...October of this year it will total $25 million...
...In practice government action is now always effective and can lead to government involvement in management decision-making to a degree that is not desirable...
...to set-up the 1l66 elections, held under the watchful eye of U.S...
...He suggested that the group discuss the future patterns of investment in Latin America and see whether the IBEC example is useful for other companies...
...He said that its arteries seem to be hardening, and Mexico may be headed for trouble...
...This was on the assumption that if war did come, the State Department would not be able to effectively deal with the post war chaos, especially in Europe...
...He thought that the government's policy of subrogation is unwise, because it provides a legal right to limit the investor's risk...
...Asst...
...Brazil's system is inconsistent with ours, and yet we work closely with Brazil...
...Barber cited a second enterprise, the Cuajone deposit, which is expected to yield 140,000 tons of copper per year at first and to cost in excess of $400 million...
...perception of its own national interest and Latin Americans' perception of their national interests, which are out of focus...
...Both are members of the CFR...
...Moreover, it seems that they are just not interested...
...government even more than against private companies...
...of State-'59-'6 Warren Co-eer W Dillon Read h Co-forne Clans...
...President Dwight D. Eisenhower In 1946 the United States faced a major crisis in Greece...
...Bronheim agreed and said that the group must examine individual countries and specific events...
...It is difficult to gauge -- at least with the information available to me -- how widespread in Latin America this fear of Chile under Allende may be...
...The Peruvians requested assembly plants, and four companies actually agreed to set them up...
...Kissinger, has indeed taken a penetrating look at Latin America under the security aspect and has found that his investigation supports his initial suspicions, his initial biases, to wit, that on a benefit-cost analysis basis, Latin America is really not very important...
...Henry Kissinger, fresh out of Harvard's School of International Affairs, led a study group in the fifties that dealt with nuclear policy...
...But Mr...
...Sedwitz thought that the Indian issue might become a rallying point in the future...
...government is already involved, "up to its eyeballs, to the tune of $380 million in guarantees...
...Levinson thought that the Latin American governments do not realize that they are dealing with the U.S...
...The IFC was interested, but only in a 10 percent share...
...Vaky thought that part of the reason for all the experimentation is that the Latin Americans do not know what the United States thinks...
...The Peruvians do American companies on the one hand and the political not think we acted weakly...
...But he suggested that the political price of the canal is greater than the cost of improveing the east-west railroads and building new west coast ports...
...We have preferences, and we need to define them...
...He asked what the U.S investor should do, however, in Peru or Chile, where the prevailing Marxist-Socialist philosophy is opposed to investors entirely...
...is a resource deficit nation, especially in the area of nonferrous metals -- copper, lead, zinc, etc...
...Gordon observed that Chilean law is that the old law may be revoked...
...He asked if this was true, and if so, how Anaconda might have acted differently and more in its interest...
...Practically, it should do better in helping the nations of Latin America and also show them that they need not be so very frustrated, for their accomplishments have been real and not at all insignificant...
...Ecuadoi hind Closed Doors is seizing U.S...
...on Foreign Relations and its ruling class have been involved n the exploitation of Latin for a long time...
...r. East Aff,'22-2, U. ",Eitabe trLste A. . Anhassodor to rante-'53-'57 ir s g Ao iaitsafrfK Under Sec...
...Any member can attend...
...Dominguez asked how effective a boycott the United States might make against Chile, assuming it disapproves of the Allende regime...
...it is both private and public...
...relations...
...He said that the U.S...
...Quigley replied that consultation was in the interest of both parties...
...Also Berle was Bd...
...Sedwitz then drew the conclusion that Mr...
...Sovereignty in using them is tive thing, and that experimentation in political delegated to the institution...
...The United States has traditionally associated with the "core" society, the establishment...
...In view of the entire experience, Anaconda decided that this mine was not an appropriate investment, and that the property should revert to the state...
...I mean that it is "lost" to us...
...Invest...
...Senate to block U.S...
...companies' fiercest competitor...
...After all, it was a similar CFR confidential Discussion Meeting Report that helped lay the ground work for a monumental change in imperialism's strategy towards China: that group was led by Henry Kissinger...
...h..e Intl P rxn ee t U.-.h . hd...
...directors of the CIA and the U.S...
...If we had not, during a period of twenty years, put so much emphasis upon security questions -- viewed always in the last analysis under the aspect of the cold war -- at the expense of adequate attention to demands for major and radical change in the economic, social and political spheres (i.e., if we had not, as under the Eisenhower and Johnson dispensations been looking at Latin America negatively, fearfully, defensively, or, as under the- 18 - brief Kennedy interim, been looking at it with split vision, one eye cocked toward cold war dangers, the other frantically casting about for the quick economic, political or social fix -- small wonder we staggered and occasionally stumbled badly) the Latin Americans might not have lost their confidence in us, in the goodness of our motives, the quality of our skills, the soundness of our wisdom...
...Latin America may be worth a mass, but it is not worth a massive commitment of economic resources, political energy or military attention...
...investments in Latin America...
...r.t-Tr...
...But they are lurching in a definite direction and they are going to continue on that path...
...Levinson's remarks, said that the Italians constantly pirate U.S...
...C. Wright Mills Introducing the CFR Within the walls of an exclusive $300,000 town!ouse off Park Avenue in New York City is the home base of an organization whose past and present members include four U.S...
...He pointed out that emotions were heavily involved, against the U.S...
...in World Affairs, and Documents of American Foreign Policy...
...Cuba sacrificed growth, and the middle and upper classes, in favor of programs for literacy and health...
...Our policy must not be thought of in terms of security but rather of ideology: what does the United States stand for...
...government...
...government participation in financing, for example through the Eximbank...
...Subscription price: $5 per year for individuals...
...7 / November, 1971 Published monthly, except May-June and July-August, when it is published bi monthly, at 160 Claremont Ave., New York, NY 10027...
...The continent has begun to break out of the grip of the United States...
...De Rosso thought that perhaps the U.S...
...McGeorge Bundy is Chairman of the Ford Foundation, brother William is Editor of Foreign Affairs...
...The Peruvians are truly apprehensive about their ability to manage, but they are determined to proceed...
...operations in Latin America: The Center for Inter-American Relations and the Council for Latin America...
...In this way and others, the CFR helped to formulate and implement the Truman Doctrine which resulted in the extermination of thousands of guerrilla fighters, the arrests of other thousands, and the establishment of a military dictatorship...
...investment abroad...
...responded too weakly with the U.S...
...In the interests of keeping discussion frank and open and in fairness to your fellow members in the group, it is of the utmost importance that these digests should not be shown to people who are not in the group...
...private investment and wished that investing companies would do a better job of explaining the contributions that they are making to the local economies...
...Therefore, there are radical experiments, as in Chile, Peru, and Bolivia...
...Most Chileans are not interested in the copper problem, which for them is a problem of philosophy rather than economics...
...capital is needed, so Latin America is by no means the only outlet...
...He criticized the American banks that in the last ten or twelve years have bought up local banks without contributing to the economy in Latin America, and felt that expropriation was inevitable in their case...
...We need a reassessment and a consideration of new leaders and forces in Latin America...
...It takes twelve minutes, I am told, to get the President from the helicopter pad at the White House to Andrews and aloft in the command ship...
...However, after only two years of existence, the American branch was on the verge of floundering...
...resources are limited and we can distribute aid and investment according to our preference for democratic regimes in bilateral programs, which cannot be depoliticized...
...In 1970, it brought in $265.00 - about 12 percent of CFR income for the year...
...Quigley's exchanges with the Chileans are called negotiations, this is something of a misnomer, as the Chileans have all the leverage...
...There is little said about security and politics...
...He said that the.company had acquired that property in 1915, with a $1.5 million outlay, but because of the complex nature of the find (an oxide ore body over sulfide with a mixture in between) and low world copper prices, it was decided that the property was uncompetitive compared with other bodies throughout the world...
...he felt that these people should include Latin Americans as well as U.S...
...hegemony in Latin America...
...Rockefeller and Mr...
...Then it was another seven years, in a favorable market expansion, before the company recovered it investment on a cash basis...
...Some of the Latin American elite do not agree...
...Sedwitz thought that the UNCTAD conference is being held too soon for that purpose and that perhaps we should first "let the dust settle...
...presence in Latin America is mixed...
...11.Victor Perlo, "Your Friends at Chase Manhattan, Standard Oil, Ludlow, and Attica" (World Magazine, New York, 1971) pp...
...Castro has advised against any confrontation with the U.S...
...9. James S. Allen, Marshall Plan: Recovery or War...
...The U.S...
...Archibald was engaged in negotiating the contract...
...3) the United States is passive on this question in the various inter-American councils...
...This is not popular with Congress, but is of long-range importance...
...Sedwitz said that the regimes in Latin America probably would not be tied to the Soviets at all...
...How the situation has changed and how it now appears, however, are matters that cannot be dealt with usefully in general terms...
...He suggested some sort of corporation with both private and government participation, so that the Latin American governments would be dealing overtly with the U.S...
...property in the hemisphere, but U.S...
...But that does not mean the security problem has disappeared...
...in Brazil there is an astronomical growth rate and the regime enjoys less support...
...Levinson remarked that Brazil's democracy 'is a "si, senor ! ' democracy, and Mr...
...General discussion Mr...
...It established what it thought were the finest communities in the country in the north, but in retrospect he thought that Anaconda might have been better off trying to influence the intellectuals and the middle class...
...This led to a further confrontation which required most of the night to resolve...
...Alexander observed that this is the most military government that Peru has ever had, and that this fact must not be forgotten...
...Policing the World: Greece and Iran "We've done some damn good things - in the economy, especially, and overseas too - Iran and Guatemala...
...Eaton thought that in principle it seems good to get a consensus in the United States on investment and then try to hold an international conference, but he asked what the incentive is for the Latin Americans to arrive at an agreement with us at this point, when they are still experimenting and are themselves divided...
...Gordon commented that Mexico wants foreign investment on its own terms, but at the same time realizes that profit must accrue to the investor or he will not come to Mexico...
...Under Chilean law, the government does not own the deposits, for which Anaconda has paid large sums...
...With background and introductory material on the CFR and its role in formulating U.S...
...Adolph Berle, a key Presidential adviser on Latin America, was a former Ambassador to Brazil, an Ass't...
...Bunker also aided in the seedy withdrawal of .S...
...Szulc inquired at what point the Peruvian government would feel the need to build a political constituency, noting that people can become impatient...
...pharmaceuticals...
...We call Cuba an economic disaster, but perhaps it is not...
...Feldman continued, there ar r. Feldman said that the U.S...
...and 2) noting the high goals set for them by the Alliance for Progress...
...In 1970 speakers at the CFR under this activity included the Shah of Iran, General Earle Wheeler, Henry Kissinger, U Thant, the Foreign Ministers of Japan, Rumania, India, Canada, and Nigeria...
...The lesson of the Chilean elections -- or one of them -- is that Latin American societies, no matter how politically sophisticated they may appear to be, no matter how lengthy their experience with the forms and formulas of democratic political practice, are not really to be trusted at free political play -- if an Allende can be elected in Chile, think what might happen in such less politically developed countries, as well, just about any other Latin American country except Mexico (and Mexico is an exception not because the Mexicans are permitted large political freedom in the conviction that Mexicans will use that freedom responsibly, but rather because a wily, "pragmatic," skeptical if not cynical, often arbitrary and sometimes ruthless cadre of powerful ones manipulates the system with a skill that must be the envy of Moscow -- as indeed of many other capitals in the free, not-so-free, and non-free worlds...
...He suggested the establish- ment of an international tribunal to adjudicate such questions as expropriation without adequate compensa- tion...
...And paradoxically, a good part of the explanation of that "loss" is to be found in the putative success of our earlier security policies and programs...
...political manipulations, Mr...
...This decision drew several reactions, but none which was a basis for negotiation, so as of October 31, 1970, the property automatically reverted to the state...
...Alexander both mentioned that the U.S...
...Alexander's point...
...Vaky suggested that a list be made of the "axioms" of the 1960s, and that modifications and qualifications of these would come to mind and provide the basis for a discussion...
...Quigley thought that the politicians are now involved with too many projects to develop mining on their own...
...The man who planned the coup, Kermit Roosevelt, the CIA Director, the Secretary of State, the President (Eisenhower), two important troubleshooters, and two important negotiators were all members of the CFR at the time...
...He placed the last flowering of hopes in April 1967, and said that since then the situation has deteriorated...
...Since the Cuban missile crisis it has been clear that even the Pentagon does not claim that Latin America is of strategic value to the United States...
...private companies makes for unrealistic arrangements...
...Sedwitz said that Mr...
...The important point, in any event, is that the United States continues to be viewed as a profoundly anti-revolutionary, anti-radical-change power, and that it is seen as being ready to give its help to South American States who would undertake to curb states with collectivist, communist, radicalreformist tendencies...
...Turning to the different example of Brazil, Mr...
...Other troubles developed after Law 11828 was passed in 1956...
...Peru's position in Latin America has changed, he pointed out, and the U.S...
...Chileans are prepared to believe that the United States bears toward their present government no good will and that it would, under some circumstances, aid and abet an incursion from across the Andes or from up the coast...
...Levinson asked whether it is realistic to envision the Cuajone project without direct government participation...
...In the field of economics, all should agree that the modified free enterprise system has been more productive over time and more in the interests of the general population than the absolute-type socialist economies...
...To better grasp the importance of the following documents and their possible implications for the future of U.S.-Latin American policy, we must first familiarize ourselves with their source: the Council on Foreign Relations...
...but I can make two observations pertinent to their position, observations that condition my whole approach to the security question that is now before us...
...private companies...
...goals, pc-ay mz- tary goals, distorted the Alliance for Progress...
...He had been struck by the fact that we now have a currency crisis, and that this is discussed in terms of the weakness of the dollar, but it is really much more than that...
...Director of J. Henry Schroder Banking Corp., CFR IV...
...business naturally will provide what is necessary for our overall relations...
...p. 35...
...he asked Congress for $300 million for aid to Greece and $100 million for aid to Turkey "to meet the grave situation in those two nations that are on the verge of being overrun by communist elements...
...Gordon, Lincoln - John Hopkins University...
...The government component of financing in the form of guarantees will probably not be available unless the U.S...
...G. William Domhoff in Who Rules America...
...He compared this situation with Argentina, where there is no democracy at any level...
...intensified its global counter-revolutionary activities...
...They feel deep frustration as a result of the gap between goals and achievement, between rhetoric and reality...
...After December 31, 1969, the new Mining Code went into effect, and the Peruvian government demanded a 51 percent interest in the operation...
...CFR Financial Backing Most CFR support comes from the corporations...
...Obviously, such investment, now totaling $11 billion, is important to the United States, and many in the United States have concluded that rapid development in Latin America, to which such investment contributes, is in our national interest...
...post-war planning problems...
...In 1947, Robert Lovett became Undersecretary of State, second-in-command to the Secretary of State...
...Rogers asked whether opposition on the other, as well as to some extent there was a consensus that the U.S...
...to, '5n-'52 . Harvard Coll.-overseer Paso natural a Co.-dir...
...national interest but an outline of the national interest based on the needs of Latin America in terms of possible U.S...
...Eaton's idea that U.S...
...Chile must be given a chance...
...It has to balance a number of different interests, political and economic...
...Quigley's suggestion that we should take a public stance and announce rules is always worth of discussion...
...In Feb...
...Levinson observed that there are more family farms in the south and that these people have a stake: naturally they are alarmed...
...Presidents, every Secretary of State since 1921 except General Marshall and present Secretary 4!illiam Rogers, chairmen of the most powerful multilational corporations, banking houses, and financial institutions...
...of State Asst...
...For the U.S., the problem of fuzzy perception of our national interest is one partly of unwillingness to think of the problem because we don't feel it is urgent...
...Only at CFR can the chairman of IBM sit down and discuss the meaning of the nationalizations of the Peruvian International Petroleum Co...
...Rogers added that the U.S...
...The economic situation is grave: there is a scarcity of goods, and thus a black market, the beginnings of unemployment on some scale, dropping productivity, and inflation...
...Robert McNamara Roswell Gilpatric Gen.Lyman Lemnitzer Cyrus Vance Adlai Stevenson Glenn Seaborg Edward R. Murrow William Foster _______________ I a Hubert Humphrey Theodore Sorenson Walt Rostow John McCone Dean Rusk John Leddy Lincoln Gordon William Bundy Charles Frankel Anthony Solomon Eugene Rostow Foy Kohler Joseph Sisco William Gaud Henry Fowler Frederick Deming Winthrop Knowlton Harold Linder Wm...
...Kissinger, the $13 billion of private U.S...
...Account would have to be taken of cases...
...In the summer of 1969 Anaconda attempted to negotiate, but the government was preoccupied with other issues...
...that he doubted if, today, Brazil's government were collapsing and a leftist group seemed about to take over, the United States would be prepared to send troops...
...In 1970, Colombia, Chile, Ecuador, Bolivia and Peru signed an agreement establishing the Andean Code, which set common rules for the treatment of foreign investment.and placed limitations on foreign capital in the area...
...Barber noted that U.S...
...State ept...
...Rockefeller turned to the Creole Petroleum Company as an example of his point, because he was familiar with it and because of its substantial size...
...Chile has been expropriating giant corporate interests without compensation...
...4) Foreign Affairs and other Publications: Providing the analytical framework of the CFR is the leading journal in its field, Foreign Affairs...
...Vaughan said it would not have been...
...He planned then to ask where the discussion could go with respect to U.S foreign investment generally, what the future looks like, and the question of supreme importance, where the discussion group itself might go...
...Nor is this just for a given term of office...
...trade restrictions...
...Working against a deadline of December 31, 1969, when a new law would take effect making conditions "impossible, the negotiators signed the agreement in mid-December...
...Rogers opened the meeting with the remark that the group had from the beginning circled around the problems of Chile and Peru, and that at this meeting it was time to land on them...
...Alexander replied that the United States should let it be known that we don't like non-democratic regimes and will act accordingly...
...He said that Peru was to present its application for development aid the next week, and that they have promised "to play by the rules...
...Journal of Commerce, February 2, 1971...
...capital into Europe has been steady, plentiful and enormously remunerative to the U.S...
...Chace replied that there are simply no alternatives, and that no one he had spoken with had been able to offer any...
...Rockefeller observed that the growth of national power is paralleled by a decline in the agressiveness of U.S...
...the influence may be to the right, contrary to common assumptions of the early 1960s...
...A review was conducted periodically, with the conclusion that the mine was not ready for exploration...
...banking house of Brown Bros., Harriman...
...ambassador spends a good deal of time with U.S...
...and for all that the prospects for the region are not bright, there is something exhilarating about the emancipation process itself...
...Levinson suggested that if the U.S...
...J-- L-~,, ---- 1...
...Eaton wondered if perhaps the natural restraint of investors is not enough of a deterrent ot uncompensated expropriation...
...Eaton, Samuel D. - State Department: La Paz, Rio de Janeiro, Bangkok, Bogota, CFR I,IV,V...
...They now have 600,000 tons of fish meal which they cannot sell at their price, so they are witholding it...
...The Service brought in $38,000 to the CFR in its first year...
...Federal Reserve System Council of Economic Advisors Sec...
...Chace replied that this only underlines his conclusion that what Peru is doing is highly experimental, and perhaps the government simply cannot succeed...
...Rockefeller mentioned the strongly-held idea that everything must be subordinated to the Mexican "national will," as defined by the Mexican government...
...Diebold, William - CFR IV...
...McGeorge Bundy and Cyrus ance went to the Dominican Republic to negotiate a new government...
...national interest as a check on the U.S...
...member, Bureau of Intelligence and Research, State Department (1963-64), CFR I,III...
...Argentina beginning to experiment as they did years ago...
...former assistant Secretary of State for Inter-American Affairs...
...economic crisis on its own warlike behavior...
...What the United States would do would depend on its calculations at the time, and whether it would tolerate the Soviets as a world power in that area...
...He asked whether this fact might give Chile something like a "moral claim" to the mines...
...Murden said that his experience in Mexico did not bear out Mr...
...In 1960 when production began, the investment totalled about $230,000,000...
...policy in Latin America is in fact not credible...
...Since 1951, 500 of its 1467 members have served at the highest levels of Democratic and Republican administrations alike in posts relating to foreign policy.l As we shall see, all of the above descriptions of the Council on Foreign Relations (CFR) are justifiable to a certain extent...
...Other speakers have included a vice president of Chase Manhattan Bank, an Assistant Secretary of State for European Affairs and former Undersecetary of the Treasury for Monetary Affairs, Robert Roosa...
...He said that the Nixon administration has accepted the Rockefeller Report with interest and had made some recommendations regarding trade, but that it should try to develop a consensus in the United States about the proper terms of foreign investment and then do a lot more in the direction of international conferences...
...Sec.of Treasury Under Sec...
...Rogers called for discussion on the group's future, and Mr...
...Balaguer in the Dominican Republic, on the other hand, probably sleeps less soundly than Garrastazu Medici...
...The Chilean government has attempted to increase its take in various ways, the most vicious of which was in the late 1940's, when they exercised exchange-rate discrimination...
...plants in Latin America with that of native-owned plants, and pointed out that the U.S corporations are in general building more attractive plants here and abroad,- 28 - while native-owned plants are usually family businesses and there is not yet any concept of the corporate image like that recently cultivated by the U.S...
...trademarks was perhaps a mistake...
...treatment of foreign capital invested in our railroads during the first few decades of this century, and said that we should not take a moral stance on questions of expropriation...
...De Rosso asked if the Belgians might help Peru, but Mr...
...entry into the League of Nations...
...Center-dir...
...In this way, the high ranking FSI officers discuss the world situation with members of the CFR...
...He urged that the group speak to the larger conceptual matters and not get bogged down in current and transitory data...
...Asst...
...founded in 1934 to promote U.S...
...Chace contrasted the land reform program with that in Peru...
...41 corporations subscribed in 1953, and 123 subscribe today...
...of Defense Asst..Sec...
...Representatives of United Fruit, Standard Oil, Anaconda, international financial agencies and others, met to analyze the present situation in Latin America and to develop new mechanisms for the United States to maintain its power and safeguard its interests...
...The decision to develop it was taken in 1964...
...This oldtimer couldn't have been more correct...
...Thus things will get done somehow, but not done well...
...private interests in Latin America must not be permitted to assume an overriding priority...
...unpublished research paper, Texas, 1968...
...It is more likely that the United States would get involved in the Mediterranean than in Brazil...
...Alexander said he thought it a mistake to think the Soviets might control Chile...
...created as part of the World Bank Group in 1956, it operates for the sole purpose of promoting private enterprise throughout the world...
...In view of the copper strike in the U.S...
...subsidiaries, but this is difficult...
...I,IV,V.* Secretary - John C. Campbell...
...government participation through the Eximbank may be vital to the success of the project...
...Rogers said that he was struck by the themes of the discussion, that they were certainly post-Alliance for Progress themes...
...il on Latin eri-rusee Monetary Affrs.-'61-'64 ! AT&T-dior.Securidr...
...but United States response to such threats occurs only when official Washington determines that it should -- if the case were otherwise, those underground siloes and caves containing the Soviet missiles in Cuba of which Paul * The presidential palace in Santiago, Chile.- 20 - Bethel and others have been telling us for so long would have been cleaned out years ago...
...He felt that if the United States does not make a big issue of the copper company experience, we will have a better chance to work out a code in the future, whereas punitive action will surely be followed by difficulties in other countries.- 30 - After dinner, Mr...
...Sec...
...Congress has appropriated lots of money over the years, and the American taxpayer thinks it generous...
...The effects of this newly experienced freedom are different in different countries of the hemisphere -- Peru is not Chile, and Haiti is not Brazil...
...he himself disagreed with that view...
...The Alliance for Progress has faded out, but it is not clear what is replacing it...
...To get interests on both sides into better focus, the United States should pursue the idea of mature partnership, but we should be less retiring...
...He sketched Latin America today: Mexico and Brazil doing what they can to obtain foreign investment...
...attitude and posisome details that are important which he did not men- tion is on the record, and that many think that we did tion...
...Many Brazilians, for instance, believe that the United States was heavily involved in the overthrow of the Goulart regime -- and that belief is entertained by Brazilians who favored the coup ( or, to use the word official Brazil prefers, the Revolution) quite as frequently as it is by those who opposed the coup...
...It is also skillfully argued that sanctions are not effective...
...policy should aim at protecting and promoting U.S...
...Then there was the military takeover, and things slowed down until, in 1969, the company was told that the Government was ready to negotiate...
...For the 1970's there is no such understanding...
...The agreement requires production in six and a half years...
...High Co...
...Barber doubted that the financing arrangements recently announced, which involve only the Brussels branch of the interested bank, will go anywhere...
...try forms of inducement, as by linking this question to that of access to the American market for Latin American exports...
...The real payoff of the Truman Doctrine was the establishment of key bases in Turkey, Greece and Saudi Arabia, which takes us into another story involving the CFR - this time in the Middle East...
...John J. McCloy, however, played the most strategic role in the Marshall Plan's scheme...
...He said that the World Bank should be part of every deal, because anyone in default to the World Bank cannot continue to benefit from it...
...The group should analyse this crazy point of view...
...Levinson had said...
...As happened in Cuba a decade ago, so also in Chile today: many of Chile's upper middle and upper classes are departing the country, taking refuge elsewhere in the hemisphere-and with them into refuge they carry resentments and wishes for revenge analogous to those carried by the Cuban refugees...
...Levinson said that there is a widespread resentment against the United States, and that trying to get a united front to force the Latin American countries to the wall will result in chaos...
...He asked what the group thought of constructing four of five different models of Latin America as it might appear in several years...
...State Department Official, CFR I. Olmstead, Cecil J.- CFR I. Petty, John R. - Assistant Secretary of the Treasury for International Affairs, CFR I. Plank, John N. - Brookings Institute...
...Chace observed that among the Andean group, there is a growing awareness that a situation where twenty-one countries are producing the same things and competing with one another is not a worthwhile goal...
...It is difficult, however, to believe that these groups represent a broad spectrum or a large segment of public opinion...
...Levinson said that the central problem for Latin America in the 1970's is how the "marginals," those on the fringe of society, can be brought into the system...
...He also commented that the Japanese, who were licensed with certain patents five years ago, are now the U.S...
...He said on Allende's part should not be assumed...
...and comparatively minor occurrences -- like the standing off Trinidad-Tobago of some of our vessels during last spring's riots -- set memories tingling...
...Evidence of this is found in exploring NACLA'S LATIN AMERICA & EMPIRE REPORT, formerly NACLA NEWSLETTER Vol...
...However, Ana- Laylin suggested that if in Peru we had invoked the conda and Kennecott might not get the same treatment-- Hickenlooper Amendment, the Peruvian government would there are many companies involved, and a uniform policy have been strengthened in its intransigence...
...Private sector North America may perceive threats also, of course...
...r-------- nn...
...What importance would Mr...
...4 Further investigation of the founding fathers of the CFR show that Elihu Root was a former Secretary of State...
...Quigley in Peru, the situation would have been a mess...
...Campbell, in welcoming the group to the Council, observed that there had been no regular Latin America discussion group here for several years...
...After attempting to buy off Mossadegh, the CIA and State Department realized that he had to go...
...Nevertheless, like the World Bank, NATO was firmly controlled by the United States...
...military forces in Latin America except the Navy...
...c Arthur H. Sean F re...
...complete integration of the Cuban economy with ours does not appear to present serious difficulties because of the obvious fact that integration is already fairly complete...
...the government unilaterally changed oil export prices, nationalized natural gas concessions, and took over national petroleum planning...
...The Harriman Committee supplied a detailed summary of what the plan should accomplish and forwarded it to Truman...
...3. Theodore H. White, The Making of the President 1964 (Signet, New York, 1966...
...It is not enough for the United States to state policy...
...living standards and progress...
...Eisenhower Keme dy Johnson Nixon President Vice President Presidential Assistant National Security Advisor Dir., C.I.A...
...investment in Latin America does not bulk particularly large, taken against not only our investments elsewhere which amount to $59 billion -- but also against what the President recently told us was a $1 trillion national economy...
...Here are some examples of CFR penetration in Latin America...
...I think he has largely discounted the significance of ideological departures in Latin America from "the American Way," and that he has persuaded the President that protection of U.S...
...He asked-if we could not have a common interest in trying to solve the common problems that the United States and Latin American countries share...
...Workers lived in camps, and the operation was isolated from the society...
...We can come to terms ith the changes...
...It was crucial to the success of the Marshall Plan that Germany recover, and McCloy played a key role in that recovery...
...Among the subscribers to the Corporation Service are virtually every important multinational corporation...
...government had been working with Mr...
...an .- . Sullivan 6 CronEwell-ptnr...
...But coups from nationalist-populist-leftist sectors of various Latin American armed forces are also conceivable...
...Chace asked why Mr...
...But we should be selective...
...2. Joi F. Whitney, Jr., The Council on Foreign Relations, Inc...
...of Army Ambass...
...and Latin American national interests are both themselves ill-defined and out of focus with one another, and Mr...
...They are in business for profit, of course, but Mr...
...that the policy had been to keep doubt alive, and Mr...
...Recognizing a twelve mile limit, the United States has repeatedly violated the limit established by these nations...
...But U.S...
...This is how they rationalize the authoritarian system...
...Eximbank - Export-Import Bank...
...The only unresolved problem was the exchange clause...
...The list includes: IBM World Trade Corp, Texaco, General Motors, American Metal Climax Corp., Time Inc., Pan American World Airways, Chase Manhattan Bank, Brown Brothers, Harriman & Co., Ford Motor Co., Mobil International, W.R...
...established in 1964 in an effort to close the gap between the rich industrialized nations and the poorer Third World countries through a readjustment of the trading system...
...Rogers noted that Mr...
...Rogers said that he had asked three members of the group to prepare individually a general inventory of questions which stand out in a consideration of the new era in Latin America and raise policy questions for the United States...
...on oreign Relations for four Administrations...
...Laylin felt that it would be better for Uncle Sam to work through international banks and organizations, not directly...
...Krogh observed that negotiations the proper U.S...
...Today, everyone, including Mr...
...Quigley replied that Allende would push Anaconda as far as he can short of confrontation, and reiterated the necessity for an announcement of policy by all interested governments that if a government transgresses, it may no longer "belong to the club...
...And is the United States a credible model...
...He said that Cerro Verde was a property the Peruvian government wished to acquire, as it is possible to develop it in a "poor-boy" way if necessary...
...Gordon asked if Cuba was a good example of this, and Mr...
...5) Chile is seen to be a threat by some groups, not, presumably as the source of conventional military or guerrilla adventures, but rather as a source of ideological infection and as a possible base for a Soviet and /or Chinese ideological offensive...
...They requested permission from Secretary of State Crodell Hull for the CFR to undertake studies of U.S...
...The Morgan Guaranty Trust Company is the donor of the funds for the Russell Leffingwell Lecture Series, which brings a foreigner to the U.S...
...Levinson suggested that the situation vis-avis Latin America is very murky and that rules cannot be laid down so easily...
...Anaconda entered negotiations with the government in 1964 under tile old Article 56 of the Mining Code, but for the next three years no progress was made...
...A predecessor of Dr...
...Gordon observed that 1972 will be an election year, and that the group might consider the new administration framework that may evolve...
...6 Henry Stimson's appointment as Secretary of War was the catalyst that really led to heavy CFR involvement in the government...
...Allende does not want a confrontation with the U.S., if he can achieve certain goals...
...government should make its position clear before incidents arise...
...He asked if all this discussion did not really point to the conclusion that we have passed the point of purely business decisions...
...Jova said that one difference is that our own problems remain unsolved and we can well afford to be more humble...
...He remarked that so far the Indian has lost his racial identity when he moved upward in society, that there is no surface racial consciousness in Peru...
...Kermit Roosevelt, CFI member and grandson of Teddy Roosevelt, was the CIA's chiefl3 operative in the Middle East at the time (1953...
...OPIC, which guarantees U.S...
...I believe that Dr...
...interests...
...Levinson, Jerome I. - Inter-American Development Bank, CFR I,IV,V...
...contracting firms...
...Eaton said that under one interpretation the only Latin American countries of importance to the United States are Bolivia, Guyana, Jamaica, and Venezuela, because of minerals, and Panama because of the Panama Canal...
...Its contributors over the years reflect this--Dean Acheson Adolf A. Berle, Clark Clifford, John Foster Dulles, W. Averall Harriman, John Kennedy, Henry Cabot Lodge, Richard Nixon, Walt Rostow, and Maxwell Taylor...
...Mr...
...Martin, Jr...
...This is a permanent obligation...
...These are, however, all essentially local matters...
...Asst...
...Since then, annual profits have been substantial, but just because of this it is politically vulnerable...
...Where do you put Latin American countries in relation to the rest of the world...
...Mexico, Brazil, Colombia, Venezuela, and Argentina may all be able to progress, but perhaps Honduras, etc., cannot...
...But at present Brazilian businessmen are more self-confident and are thus easier to negotiate with...
...About 1.6 million tons are produced here in the States...
...Eaton objected that the situation cannot be viewed in terms of black and white and that all the factors (the Soviet presence being one) must be examined...
...Feldman referred to the problem presented by the Andean investment code,* which must be considered in depth...
...is unable to take advantage in the region now...
...In 1970 CFR Discussion Groups covered the following topics, among others: "New Forces in World Politics" (a discussion of insurgency movements around the world...
...Barber to ment that if the Cuajone project is tinues to go forward, "the Peruvian clarify his statefinanced and congenerals would have certain options...
...In the field of security, the enemy for them is the United States, not international communism, because of United States power, money, presence, and so on...
...has a national interest in the supply of raw materials such as copper, should not the government have an active role in making the contracts, not leaving it all to private companies...
...Given the challenges from Latin America, a number of different responses are possible, and all of these positions are represented within the CFR meetings...
...forces...
...I seem to recall that Eric Sevareid, in one of his more exalted and enlightened moments, said at the time of the Dominican uprising that seven communists were potentially more dangerous than seven hundred because they were harder to identify, harder to control...
...Should the generals fail to quicken the pace of change, no one knows what will happen...
...In countries bothered by guerrilla activity a few years ago -- Colombia, Venezuela, Peru, Bolivia, Guatemala -- the governments give every indication of being able to maintain adequate domestic order...
...1 1 From the examples of Greece, Iran, Guatemala, Lebanon, the Congo, Vietnam, the Dominican Republic, Indonesia, Bolivia, and repeated attempts in Cuba, it is clear that that this has indeed remained a "permanent obligation...
...businessmen on how it works...
...Feldman, Mark B. - No information available...
...Allende has undertaken to negotiate with other companies...
...Therefore the terms were rearranged, and after further negotiations, the Peruvian government went back to its demand for 51 percent and decided that it was necessary to renegotiate its property management contract with Anaconda so that Peruvians would form a majority of the board and a Peruvian would be designated as manager...
...Olmstead observed that the Carib- bean at least is a real security interest, that the United States could not allow anyone, say the Russians, to restrict shipping in the area...
...while OAS Ambassador Ellsworth Bunker went to the D.R...
...the Tvr-..sEa riva-te Tnv.esmont mvnrinn (nPra The U.S...
...Or should it perhaps threaten Chile with such penalties as closing the U.S...
...1) Corporation Service: One of CFR's most important programs, the corporation service was begun in 1953...
...Oliver, commenting on the three reports, said that they were balanced, but Mr...
...Gordon's impression...
...The question that concerns us, however, is from whence do the Latin Americans see threats emanating...
...The Marshall Plan was instituted after World War II to save Europe, and the plan has worked so well that the balance between the European currencies and the dollar has shifted completely...
...The question has been raised: How important is Latin America to the United States...
...we have done so in Mexico...
...He concluded that the copper-producing countries in Latin America and in Africa are aiming ultimately at a world copper market controlled by them...
...prejudice" in favor of constitutional democracy is legitimate and should be made clear...
...This is because the U.S...
...contributions toward their satisfaction...
...Eaton inquired about another option for Peru, that of taking over Toquepala, hiring technicians (assuming they could find them), and financing Cuajone out of Toquepala income...
...and Uruguay, despite a steady growth rate, is unstable...
...government should establish through internationally recognized institutions the idea that there is a principle of fair play in these matters that we will uphold and support...
...De Rosso said that he did, in Chile, though it would not do much good except for its demonstration effect...
...67-68...
...It is probably appropriate to introduce a kind of potential threat to which some groups in Latin America claim their societies are exposed: the threat of the engineered golpe de estado, sponsored or at least aided and abetted by foreign powers...
...He asked if we know enough to be sure of the solutions...
...This intensification went from massive aid and the CIA in the late forties and early fifties, to full scale invasions in the late fifties and sixties: Lebanon, Vetnam, and the Dominican Republic...
...Dominguez asked just how important Latin America would be to the Soviets...
...He said that the Council has not excluded the possibility of some publication or informal memorandum emerging from the sessions, though this is not planned...
...example of fierce company competition, with all simultaneously trying to develop the same process or product, was inefficient...
...directors are also CFR members, including Emilio Collado (former World Bank executive director) and Julius Stratton (former Ford Foundation president...
...MacEachron, David W. - CFR IV...
...There was was the problem of good faith...
...Oliver, Covey T. - Former ambassador to Colombia...
...Levinson had made a good point in his discussion, though he did not subscribe to his argument...
...With Harriman on the committee were two other CFR members: Paul Hoffman of Studebaker and W. Randolf Burgess of the Chase National Bank, 1 0 one of the prime beneficiaries of the Marshall Plan through loans that made millions off the "recovery plan designed to promote humanitarian ideals to the people of Europe" -- to quote from government jargon of the time...
...Plank disagreed that Allende blames the United States for Chile's problems and thought that rather Allende blames the Chilean upper class and history...
...Archibald and Quigley, who have been intimately involved with the specific issues and negotiations for some time...
...of Health, Educ...
...planes...
...International Aff...
...government supplies three fourths of the capital for the IDB and, therefore, has considerable control over it...
...Plank asked why the private sector is a better judge of copper marketing than government...
...There is no real agreement on the law or in practice...
...Conflit and overlap among the three might serve as a basis for the current discussion and perhaps for the agenda of the group's future meetings...
...De Rosso, looking at the other side of the question, namely Chile's power vis-a-vis the U.S., asked whether foreign (i.e., non-U.S...
...What countries are likely to develop and become power...
...Kissinger's in the Situation Room** is reported to have asked in an examination -- for in an earlier incarnation this man had been associated with a university -- "If all of Latin America were to sink beneath the waters of the sea, what would be the effect upon the United States security interests...
...leany-'49-'52 erican Metal Climax...
...Established governments in the Commonwealth Caribbean are vulnerable to black-power initiatives...
...Regarding the Mexican example, Mr...
...Escalation of commitments should be prevented by opening up the basic assumptions of policy...
...IFC - International Finance Corporation...
...He said that the generals are very dependent on technocrats, who are few in number...
...8) We have been considering till now security threats that involve significant violence, clashes of arms, military components...
...In August of that year, the Office of the Coordinator of Inter-American Affairs was created and Nelson became its first Coordinator...
...Rockefeller said that it was, in the long run...
...He met with Ambassador Corry, who was most cooperative but also most interested in getting an agreement, any agreement...
...Special guests, primarily from the corporate world, were invited to participate with other council members to assess the relationship between the U.S...
...These propositions were not discussed...
...Barber said that the Japanese are already over-committed in iron ore and copper investments...
...Later on, Anaconda was asked to sell this information, but no price has been agreed upon...
...the Secretary General of NATO, the Managing Director of the International Monetary Fund, and the Director-General of GATT (General Agreements on Trade and Tariffs...
...interest stops, but that was an important question for discussion sometime...
...African Affairs Asst...
...found that out of a sample of 210 CFR members, 82 were listed in the Social Register (directory of the upper class...
...War-'41-'45 Allied Cheical Corp.-dir...
...Richard Bissell, planned the Bay of Pigs invasion of Cuba...
...As one group member phrased it: The process of change in Latin American society will carry with it changes in the status of U.S...
...policy would consistently support...
...Military Assistance Mission in Iran...
...policy...
...New technology and higher copper prices justified it for the first time...
...Even if the United States became less active, this exaggerated nationalism would exist...
...Paul McCracken Thomas Gates,Jr...
...Sedwitz, taking up the point, observed that while Chile may now seem to be more radical and ideological in its approach, stability may be achieved sooner...
...For example they wish to decentralize the educational system and adopt the ideas of Ivan Illich, since they are convinced that this system would be better than that now in effect...
...Bronheim said it was a question of what price one is prepared to pay...
...to save the day for the Institute...
...Quigley replied that Japan and others might gain control over all copper outside the U.S...
...oreover, arguments and proposals put forward by American academicians regarding investment have been generally ill-conceived and invalid...
...4. Erwin 0. Smigel, The Wall Street Lawyer (Free Press of Glencoe, London, 1964...
...4) make clear that it considers U.S...
...Government participation in investments are now in limbo in Peru as a result of the IPC affair...
...Vaky warned that the fact of Soviet influence could not be dismissed...
...Laylin suggested that it is better to negotiate with Allende behind the scenes, and that progress is now being made in this way, but the effect on other countries and on the international situation is important...
...Chile should be given every possibility of success with its present government...
...7. Ibid...
...Rockefeller Fo d.-trustee V-WChase Manhatta Bk.-di CIA Head-'53-'61 Center Inter-Am...
...companies have a large interest, and a good argument can be made for the application of sanctions...
...CFR members played an important role in whipping up sentiment in favor of intervention...
...De Rosso repeated that U.S...
...State Department," "the invisible government," "a school for statesmen," and the "Rockefeller Foreign Office...
...Plank asked whether it is possible that per capita incomes be raised in Latin America, given the political/social situation...
...Soc.-dir...
...A Rockefeller profit-making venture created under the guise of spurring "international development" to diversify the family interests...
...created in 1944 as an international super-authority which would help countries balance their international payments...
...market, could he integrated by increasing mineral exports to the u nited States...
...Returning to the subject of technology, Mr...
...policy...
...government actions in the recent past have been the antithesis of this idea: 1) The United States has shown a passive response to the actions of Peru, Chile, and others...
...Chace noted that the recent Christian Democratic gains in the south of Chile reflect hostility to Allende.- 31 - Mr...
...I am bound to believe that the President would prefer to see Latin America remain within the protective reaction perimeter of United States commitment...
...However, the first one deals primarily with U.S...
...in Chile, Allende is not in the same position, and faces may be ground into the dust...
...security might be affected...
...government might assert the U.S...
...Vaughn replied that not one of Nelson Rockefeller's recommendations had been adopted to his knowledge...
...imperial strategy...
...It has not been moved to Norfolk...
...While Mr...
...Allende is in the position of a broker, with the not take the IPC affair lying down...
...government actions and academic proposals of the last few years have been inadequate or harmful...
...interests...
...At this point Anaconda had invested over $7 million already in the operation, and was investing at the rate of $450,000plus a month, with the prospect of increasing this monthly investment to $2 and one-half million in the near future...
...Over a third of the Council's 1500 members have been called on by the government during the last twenty years to undertake official responsibilities...
...It was important for two main reasons: CFR members formulated recommendations that greatly affected American post-war foreign policy, and these groups were the harbingers of future study groups which pooled resources and examined crucial questions facing U.S...
...Alexander suggested that the U.S...
...Also, bacause of the canal, we find it in our interest to accept the situation in Panama without trying to interfere...
...Explain to the government and the people that in this stage of Mexico's development the United States cannot in its best interest be closely associated with Mexico on aid and exchange and investment programs...
...Brown Bros., Harriman-ptnr...
...There was not only the question of subsidy involved but the acknowledgement that the U.S...
...Over all, Mr...
...Chace also noted the firm decision of the generals to speed up land reform and deal with eventualities "after the fact...
...Gordon observed that the Supreme Court now has three Allende appointees and two judicial appointees...
...Barber, Charles E. - American Smelting and Refining Co., CFR IV...
...10.Ibid...
...They have eased into the Mexican position without the turmoil and trauma that Mexico experienced...
...Eaton's idea that Latin America regards the "United States as the enemy" was the only point that touched on irrationality in Latin American policies...
...De Rosso said that he agreed with Mr...
...Last year's investment was $13 million, and by...
...2) vigorously back the insurance scheme now on the World Bank dockets 3) work hard for a less war* Charles P. Kindelberger is a professor of economics at the Massachusetts Institute of Technology (MIT) and is one of the most highly acclaimed international economists in the United States...
...If the companies want the U.S...
...More will be said about him and the Marshall Plan...
...Manufacturer's Hanover Trust-dir...
...Gordon asked Mr...
...Quigley replied that the amendment will probably be passed soon...
...This information naturally reached the Peruvians, they presented new demands, and new negotiations became necessary...
...Alexander noted that Cuba had set up growth targets which, by Castro's own admission, it had failed to achieve, and in Cuba's case it was not a question of their having chosen between several alternatives...
...In Peru there may be a great deal of pressure on the government to take over existing major investments, especially if the United States makes no response to measures taken in Chile...
...Hull approved and the CFR went quickly into action with a grant from the Rockefeller foundation...
...The members called upon were: 1) Alphonse De Rosso, 2) Samuel D. Eaton, and 3) Jerome I. Levinson...
...Levinson said that this idea touched on a fundamental issue...
...Oliver said he does not wish to see an appraisal of the "true" U.S...
...Nobody yet knows the answer to the question of what is the U.S...
...But they are aware of the question whether they possess the managerial capacity to carry out their programs...
...V, No...
...On the political issue, they are not really concerned about repressive governments...
...Rockefeller suggested that the issues should be decided on the basis of law, for which there is still some res- pect...
...and actions...
...Martin, Jr...
...Kissinger has reached that conclusion also...
...corporate control of Europe...
...It is my view -- and there are many here who can correct me if my perception is faulty -- that the President's national security advisor, Dr...
...Second-class postage paid at New York, NY.-3important alumni and CFR members of this firm who include John Lodge, Governor of Connecticut and Ambassador to Spain...
...One interesting aspect of the Council's Studies Program is its arrangement for "senior ranking officers of the Foreign Service Institute (FSI) to attend an annual CFR meeting...
...Chace, raising the problem of technological capacity, said that the U.S...
...3 (See chart of CFR members who have held key posts in administrations from Eisenhower to Nixon: being recruited for policy making positions is one of the prime sources of CFR power...
...It is too easy for the United States to say that marginality is the most important problem to solve...
...Our government must decide whether it is in the U.S...
...Chace replied that no one really knows how the government will build a * Ivan Illich is a radical educator on the Board of Directors of CIDOC (Centro Intercultural de Documentacion), a Mexican Educational Membership Cooperative in Cuernavaca...
...Achibald replied by referring to Peru, where the government took over the commercialization of fish meal...
...Olmstead asked: Do we really have no interest in Latin America except economic interest...
...Whatever policy toward Latin America is finally developed will have had its origins in the Council on Foreign Relations.- 10 - Meet the experts Participants Chairman - William D. Rogers: Arnold & Porter...
...In the next two years, it will become more important, as "Titoist" regimes emerge in Latin America (Titoist in the sense of declaring independence of the neighboring great power, i.e., the United States...
...M -dir...
...Under this law Anaconda was to build new mines and its tax was to go down from 85 percent to 50 or 52 percent if production was increased by a specified amount...
...Peru, Bolivia and Chile are now all experimenting, each in a different way...
...i.s | LllesChase Int'l...
...l 5 o Bie...
...attention was on the Middle East...
...The Ford Foundation recently chipped in a $900,000 grant to study China and North Atlantic policy...
...There is very little evidence of concern for the future supply of raw materials in the formulation and execution of U.S...
...Campbell, returning to Mr...
...The directors of the Council in its embryonic stages presaged future CFR leadership: Wall Street lawyers Paul Cravath and John Davis, bankers Otto Kahn and Paul Warburg, and Elihu Root, just to name a few, Cravath was a partner in the firm of Cravath, Swain & Moore, one of the most influential Wall Street international law firms that has ever existed...
...foreign policy...
...This episode of U.S...
...Stimson chose fellow CFR member John J. McCloy as his personnel director...
...2) that the United States has a capital surplus ad needs Latin America as an outlet...
...property in the hemisphere, but U.S...
...The ruling class would have us believe the myths written in American history books: that the Marshall Plan was formed "for the recovery of Europe...
...Rockefeller, however, observed that radical organizations in Peru have always "copped out," and have thus proven ineffective...
...consistently lobbying for programs relating to the further penetration of Latin America...
...it would do so anyway...
...Barlow asked whether, if Brazil had gone communist, it would have been in the U.S...
...Dir., Agency for Int'l...
...policy should be to shore up "friendly" and sympathetic regimes, but the problem with this approach is one of credibility: people will wonder what we really believe, and beliefs still powerfully attract or repel...
...He said that because the United States needs Chile's copper, it might be impossible to break Chile by boycott without at the same time damaging U.S...
...Eaton and De Rosso...
...The plan was completed by 1970...
...We can come to terms with the changes...
...Background Paper #5), and said that he had been working on an idea which, while not very original, provided a setting for the evening's discussion...
...The U.S...
...Private investment may make a contribution...
...1956/57...
...therefore, U.S...
...policies toward investments in Latin America have implications outside the region, for example in Canadian-U.S...
...Sec...
...A to Korea-'53-'5 4 Chase Manhattan Bk-Ch.n...
...Eighty percent of the expansion program was completed when the IPC case developed in 1968, and in February 1969 Frei informed Anaconda that as the political situation was developing he was unable to control those elements advocating expropriation...
...corporations must adapt to new rules for foreign investment laid out by other countries, such as the Andean Code, and that they can do so without sacrificing profitable investments...
...6. Joseph Kraft, School for Statesmen (Harper's Magazine, July 1968) pp...
...In Brazil, the militarists and industrialists in control argue that the populist politicians, if they were given a say, would create havoc in the society and preclude the ability to accumulate capital, thus thwarting development...
...Rogers stressed the complexity of transferring technology from one society to the other...
...Under Sec...
...As to the U.S...
...Chace said that 18 automobile companies exported cars to Peru...
...Kissinger is publicly on record with the formulation that the world today is militarily bi-polar, politically multi-polar...
...He said that the peasants, who stood to gain by land reform, had voted for Allende...
...Alexander noted that its success depends on the domination of a strong oligarchy, about which he has serious questions...
...Of course, this may not be a permanent state, as two years ago there were real dangers of such turmoil...
...Why should the minutes of these meetings be made public...
...Vaughn, Jack Hood - Former Director, Peace Corps...
...McCloy was appointed U.S...
...It may well be that had the United States not followed the Dulles policies of the 1950's, had the United States not ostracized Cuba, not intervened in the Dominican Republic, not trained and equiped counter-insurgency forces up and down the hemisphere, not provided succor and support for military regimes, that the situation in this part of the world would be today very substantially worse than it is...
...He recalled applying to Ambassador Belcher several times during his negotiations in Peru because the governmental decrees amounted to confiscation...
...The study groups usually include about 15 to 20 people...
...Background papers were prepared to serve as a basis for discussion and notes were taken throughout the meetings...
...and controls all military assistance to these countries...
...Actually the degree of intimacy the United States has with Brazil has declined in the recent past...
...FeltCrp Sop Co-dir...
...I say "ideological" in the absence of a better word, although it connotes bodies of political belief that are more coherent and comprehensive than operational Latin American political philosophies are...
...But beyond relations, what should the United States do...
...policy is leaving the realm of the basic assumptions we wish to examine...
...Despite interminable meetings, there was little progress as different ministries were involved and did not work together...
...Levinson pointed to the fact that multi-national corporations have been moving their capital around at will, to the detriment of both national and international interests...
...There may be some exceptions, for example the auto industry, which took migrants and trained them for jobs, but by and large foreign investment is capital-intensive...
...It is a form of socialization: the training and brainwashing of the functionaries by the representatives whose interests they are to safeguard when assigned abroad...
...That they have lost confidence is, on balance, probably a good thing -- for them and for us...
...oil companies, primarily Gulf and Standard, received a 40 percent interest under the-5new contracts, the largest share of all nations...
...Levinson returned to his earlier point and * Ecuador, Peru and seven other Latin American nations have declared a 200 mile territorial waters limit to protect their fishing rights...
...Now there are 15 women...
...Still, as of the end of 1969, the project had yielded only an 8 percent return to the company on a cash-flow basis...
...Quigley said that at this point he went to Chile and negotiated night and day until June 26...
...Apart from his legislative in the IPC case...
...should act in support of the principle of fairness in the international community generally rather than intervene in his own company's negotiations...
...Indeed, some Latin American revolutionaries are already distinctly unhappy because the United States is not playing the role it had been expected to: the low-profile, the almost-resigned response to provocation, the absence of righteous rhetoric that used to characterize hemispheric pronouncements during the Eisenhower-Kennedy-Johnson years -- these have a devastating effect upon young revolutionaries who desperately need to picture the United States as the incarnation of capitalist insensitivity, oppressiveness and brutality...
...One has to come down to cases: specific groups, specific countries...
...The study was called Mobilization of America's Resources in Time of War...
...As for capital, all over the world U.S...
...the second, with questions of national security...
...government policy but the entire set of inter-relationships and taking account of emerging political and social forces in Latin America...
...People inquire why American companies like Anaconda and Asarco stick to such a difficult area when the problems are so great...
...Creole embarked on a program of development, training of personnel, and integration into the Venezuelan economy...
...firms...
...I think it right to say, though, that if any or all of these states should follow the nuclear route, it would not be in response to any real or perceived threat, but simply in quest of grandeur et gloire...
...interest is...
...Referring to the Mexican example, which he said was little known elsewhere in Latin America, Mr...
...security and business interests distrust this basic reason for U.S...
...Bunker had been chairman, and is now director of National Sugar Refining, and has been a director of various other sugar companies in Puerto Rico and Cuba...
...Political Aff...
...A puppet named Zahedi was set up...
...Vaky thought that the security interest was a good topic, and Mr...
...He agreed with the philosophy of the "mature artnership" idea, but disagreed with the "low profile" policy...
...Ambassador to the North Atlantic Treaty Organization (NATO) under Kennedy...
...By 1955 the necessary bilateral agreements were reached and financing was completed...
...and individual liberty may be taken for granted as an ultimate goal of all the states in the hemisphere...
...History, as the tired expression has it, does not reveal her alternatives...
...Following the Dominican invasion of l165, Averell Harriman was sent to Latin America to "explain" the U.S...
...aVUunun:-8The CFR Invades Latin America Their strategy...
...Moreover, they are not now concerned with what we might consider to be negative aspects...
...Chile is expropriating these mines themselves without compensation...
...Rockefeller next discussed the different concepts of the state held by Latin Americans and AngloSaxon Americans...
...Kahn spoke on, "United States - Japan: Economic Confrontation...
...Uruguay is being more embarrassed than staggered by the Tupamaros...
...Many look for this in Brazil already...
...Barber continued, pointing out that recent events in Chile and Peru underline another gneral consideration, the need to develop a standard of !'fairness" as a matter of international law and practice in dealing with international investment, particularly in the developing countries...
...The 1970's mark a turning point in U.S.-Latin American relations, The guidelines and concepts that led to the Alliance for Progress and other aid programs are being challenged as irrelevant and incapable of meeting the needs of the people of Latin America...
...After an outlay of $4.5 million, a mining plan was established and it was decided that tile property would be developed...
...Rockefeller thought that foreign investors generally have to face the fact of expanding national power., because natural growth has resulted in the increase of national capital...
...Chace agreed, saying that Allende is attempting to convince the middle class to liquidate itself...
...investment in countries where it is unwelcome...
...may be somehow withheldfrom us...
...Levinson said that now we pretend that only private interests are involved where they are not, and we conduct behind-the-scenes manipulation...
...1962/63...
...railroads and the west coast ports are inadequate to handle the vast material needs of such a war...
...Rogers invited the group to take a grand view of U.S...
...International Aff...
...Does Dr...
...The Peruvian government, however, has a statist and anti-establishment bias, and all the big companies there -- Standard Oil (New Jersey), Xerox, Grace, Ford, etc...
...trustees Ford Foundtion-pres...
...The Tupamaros are a daily challenge to the Uruguayan regime...
...Szulc, Tad - Correspondent for The New York Times, CFR V. Quigley, William - Anaconda Copper, CFR IV...
...Kermit organized the coup that overthrew the nationalist regime with the help of the U.S...
...Plank said that shifting from the idea of interests to the idea of preferences is interesting...
...At a recent board meeting of the CFR one of the older members (the large majority of the Council members are old) remarked to a smiling David Rockefeller (newly selected CFR Board Chairman) while reminiscing about the CFR's origins, "the Council was a marriage of money and brains...
...U.S...
...Among other reasons for the unwarranted response of the U.S...
...Barber said that he supposed development of the project would end for the time being, but he suspected that the Peruvians would seek to interest the Japanese or others...
...government role in Peru...
...The previous article indicates that these meetings and others like them often lead to actual U.S...
...He thought that the Peruvians would not succeed unless Japan was willing to take on the project as an Aswan Dam type investment.* Mr...
...corporate assets in Latin America without compensation since the actions taken by the Cuban government in the early 1960s.- 22 - long-time resident of Peru...
...Other countries where American money is invested are no doubt watching the United States to see what it will tolerate in the way of expropriations, etc...
...Now, what do the Latin Americans really think about all these issues...
...10 out of the 15 Ford Foundation trustees and 18 out of the 26 Carnegie Endowment for International Peace trustees are in the CFR...
...of Gulf Oil, one of the beneficiaries of the coup...
...Allied CheicalCCorp.-dir...
...CFR I,IV,V...
...government...
...This is one of many solutions being proposed to the problem of protecting U.S...
...1 That same summer, the corporate elite saw new business possibilities in the hemisphere because the European markets were temporarily unable to handle the raw materials being exported from Latin America...
...Gordon, however, pointed out that patents quickly become obsolete and thus do not satisfy the technical needs of a Latin American country...
...it might become a showcase operation by virtue of its easy accessibility...
...there is no automatic formula to be applied in case of conflict between the Peruvian government and American companies...
...Chace began by stating that his impressions are derived from talks with the "outs" as well as the "ins" in Peru...
...There is not one major power in Latin America, and these conventional ways of viewing the region make it seem unimportant...
...Those with interests in the latter, single product companies, tend to raise strategic and security problems most often...
...This policy may be bound to fail, but can we really vouch for our alternative growth model...
...I an...
...Alexander's suggestions...
...Barber said that the Cuajone case has wide implications for international investment in Peru, which is now a very delicate business...
...black separatism was the first step in Negro economic development.- Self-realization is a requirement for advancement, so the national feeling in Peru is a positive phenomenon...
...Sedwitz said that marginality is one of the major problems of the 1970s...
...However, there will be more and more of them in the cities, and the second generation must be more upward-mobile...
...national interest...
...or other foreign businesses will accept the idea of 51 percent worker ownership in ten to fifteen years...
...At dinner, Mr...
...imperialism gave much to the United States: more bases, oil dominance over Britain for the first time, a foothold to compliment its victories in Greece, and the extension of the "defense parameter that "X" talked about in "Containment," another area from which the U.S...
...The point is clear: right from the opening gun the CFR was composed of members of America's financial and academic elite...
...Chairman, Export-Import Bank Chmn...
...McGeorge Bundy John McCone Dean Rusk George Ball Foy Kohler Edwin Martin Phillips Talbot W. Averell Harriman George McGhee Henry Owen Harlan Cleveland David Bell C. Douglas Dillon Robert Roosa John Leddy Harold Linder Wm...
...government is also involved...
...Rockefeller disagreed that there is no popular base in Brazil, and pointed out that the middle class is growing, and that there is a regular, controlled elective system, for which candidates are chosen and presented to the electorate...
...After this session at CFR, Lovett emerged to say, "I came away from the session with the firm conviction that our principal aim at State (the State Department) would be to awaken the nation to the dangers of Communist agression...
...He said that U.S...
...Marginal exception made of the Dominican Republic...
...of State Under Sec...
...a multilateral lending agency set up to finance development programs in Latin America...
...Quigley felt that throughout the negotiations Anaconda had leaned over backwards to accomodate political problems and still conduct a business-like operation...
...For example, after pumping millions of dollars into the Latin American military to develop a powerful pro-U.S...
...Information Agency, senior partners of Wall Street's key international law firms, leaders of the academic elite, heads of the nation's major media: T.V., radio and press...
...a chairman of the Joint Chiefs of Staff, Atomic Energy Commissioners, and influential presidential advisers...
...He said that the idea that development agencies are neutral and objective is nonsense...
...Even Costa Rica's peppery little President, don Pepe, has-if my memory is correct -- intimated that trading relations between Costa Rica and Cuba might be re-established provided that those relations did not imply anything in the nature of political accommodation and approval...
...But the key outcome of the coup, besides the terror it inflicted upon the Iranian people, was the new international oil consortium that was drawn-up immediately afterwards...
...IBRD - International Bank for Reconstruction and Development (World Bank...
...Asst...
...Ft...
...Alexander said that this depends on the regime, that in Cuba Castro is solidly in power and may do anything he wishes, including ruining the economy...
...If Ford or Mobil shows interest in investing in Peru or Thailand, they can consult with experts at the council before taking the risk...
...Foreign contributors include Prince Norodom Sihanouk, Gamal Nasser, Nikita Khruschev, Sekou Toure, and General Moshe Dayan...
...Peruvians, I have been told by a Peruvian reasonably close to the junta, are prepared to believe that the United States helped Chile build its highway from Arica to Antofagasta pri* The Cuban missile crisis ** Rumors of Soviet submarine bases in Cuba provoked a strong reaction on the part of the nited States...
...American companies would do well to develop national trademarks...
...Membership: The Power of the CFR As of 1970 there were 1467 members of the CFR, of which 700 were resident members (living or doing business in a 50-mile radius of New York City) and 767 were non-resident...
...These ideological differences go to reinforce more conventional national rivalries and misunderstandings...
...Olmstead emphatically urged that we examine what the interests of the Latin American countries are in the United States, and what they expect of-the United States...
...interest in terms of each country...
...However, he felt that it is not necessary to try to do this...
...3) This is a time of experiment...
...When Allende won in Chile, U.S...
...Int'l Security Aff...
...He raised the dilemma faced by CIAP, which is supposed to evaluate countries on the basis of their economic perfermance...
...Under McCloy the Marshall Plan in Germany went the way Wall Street wanted it...
...political constituency...
...and "Foreign Affairs Organization for the Seventies...
...Sedwitz felt that the group had scarcely begunto scratch the surface, and that a number of very important issues had been mentioned by not developed...
...De Rosso had attributed a leading role to private capital in Latin America...
...Plank noted that Anaconda is known for its model operations in the north of Chile, but is said to be deficient in its public relations and image-making with the Chilean public...
...The United States might think that too high a level of foreign investment invites adverse political reactions and thus that it should not be encouraged...
...by 1948 their investment had totaled $8 million...
...There is a national interest in development of other countries and a valid theory that capital flow is a vital necessity to it...
...But where is the divorce tive thing, and that experimentation in political delegated to the institution...
...Three of the past four presidents of the World Bank, John J. McCloy, Eugene Black, Robert McNamara, are also CFR members...
...Mr Quigley said he helt that we had, moves, Allende has pledged himself to honor Chile's and Mr...
...Bronheim agreed, but pointed out that there is in Cuba a modest amount of support for the regime, despite a low rate of growth...
...Chace replied that he was not saying that the Peruvians could not fail, but he reiterated his impression that this government would try to proceed regardless of circumstances, along the lines provided by skilled technocrats...
...Rockefeller said that the time seems to be ripe for international negotiation on the terms of investment...
...Kissinger's conclusion that direct confrontations with Latin American governments are to be avoided, he reasoning both that such confrontations would serve the interests of those fanatically, ideologically, or cynically opposed to the United States more than they would serve our interests, and that the costs to us, domestic and international of such confrontations would far outweigh any conceivable benefits...
...It now seems that the Cuajone project can be successfully financed only if Washington and perhaps other Western governments make a policy decision that the project should go forward...
...However, the United States had "dubious and dated information," according to intelligence officials, and was perhaps moved to create a crisis situation by broader policy motivations, including the Middle East crisis and the coming elections in Chile...
...government, and this advice is a dtermining factor in the attitude of Allende...
...approach has become almost like that of a multilateral organization...
...Levinson asked how Allende's goals would guide him in terms of the copper negotiations...
...Government intervention can create problems for both government and business...
...Jova suggested that to call Uruguay unstable was perhaps incorrect and asked whether the growth of urban terrorism and the existence of two or three hundred terrorists might not be responsible for the impression of instability...
...One of his main decisions while High Commissioner (a post he held from 1949-52) was the loosening of investment restrictions for foreign firms wishing to invest in Germany...
...He defended U.S...
...The Venezuelan-Guyanan dispute is not properly resolved...
...There are many ways that the United States can exert influence and we should not hesitate to use them in appropriate circumstances...
...Most Americans, and the vast millions of people the CFR personnel have affected in Europe, Asia Africa, and Latin America have never even heard of this powerful grcup that defines itself "as a private, non-profit center for the study of American foreign policy," in spite of the fact that its recommendations have changed world history...
...Gordon, referring to the subject of protection of an investor, said that his impression was that the U.S...
...This was their first key member to be awarded a top post based upon his work, in part, at the CFR...
...Co.-dir...
...occupying troops...
...De Rosso pointed out that the U.S...
...Jova, who was recently in Los Angeles, mentioned a Los Angeles Times editorial advocating a correct policy toward Chile had occasioned very few dissenting letters and very many approving ones...
...Rather, I mean that the fear of real Soviet or Chinese support of local insurgencies has pretty much evaporated...
...In Chile, Frei has brought many into the system by stressing literacy and jobs, etc...
...Affairs Asst...
...Oliver called this "preventive security" and asked what we have learned about it...
...The code, which precludes subrogration, contains a number of ambiguities, and perhaps some flexibility will be discovered, despite strict tandards regarding government guarantees on foreign loans...
...6) There remain a number of areas and issues that are seen to be security threats by individual Latin American countries...
...This infiltration was set in motion in 1939 when CFR members Walter Mallory and Hamilton Fish Armstrong traveled to Washington with a scheme...
...This is war, gentlemen," Reed said, "economic and political war...
...The growth of nationalism, radical new governments, such as those in Peru and Chile, and the expropriation of U.S...
...Thomas K. Finletter, special assistant to a Secretary of State, one-time Secretary of the Air Force under Truman, and U.S...
...That is, if Chile takes over properties without meaningful compensation and attempts to manage them, and if the Chilean economy "falls on its face," other countries, seeing this, will not be enchanged with Chilean model...
...Alexander thought that the marginal masses do not have such high unemployment as has been suggested, nor is their situation so hopeless...
...also I have extrapolated from it, employing it as a professional maxim: "If you don't know what you're talking about, talk boldly, confidently...
...Butler took exception to the example of Chile's copper obviating a boycott by the United States...
...This CIA coup insured U.S...
...New Jersey), CFR I,IV,V...
...They provide insights into the process of formulating foreign policy and into the perspectives and opinions of the corporate-political elite...
...The fact that the CFR is holding these discussions on Latin America demonstrates the importance of this region and the Fuy extent of concern over the current situation...
...Feldman replied that it was a fact of life that this is not a viable option for the State Department in view of the expectations of the American community...
...On fishing, he said it was noteworthy that at the OAS conference Peru was uncomprom-- 23 - ising in its support of Ecuador's position* but regarding its own waters had acted with discreet dircumspection...
...Recent events in Peru and Chile have forced the cor- C...
...Army School of the Americas which provides the training for Latin American officers.- 21 - Council on Foreign Relations Discussion Meeting Report THE UNITED STATES AND LATIN AMERICA Fourth Meeting: April 13, 1971 Digest of Discussion (This digest has not been edited by the participants...
...As seen from the rest of the hemisphere, Haiti is a local matter also...
...Dir.,Arms Control & Disarm.Agy...
...Then there will be a waiting period...
...of Sucrest Corp., the bulk of whose sugar came from the Caribbean...
...foreign policy...
...I have tried to stay within the security parameters that were set for me...
...look at underdevelopment, a problem the consequences of which go into social and emotional as well as econoMr...
...Mr...
...U.S...
...In political philosophy and organization, the United States and Latin America should have a roughly common view of their political interests, in that no none should wish a dictatorship of the left as this is the most enduring and repressive form...
...His law firm, Berle & Berle counseled U.S...
...The "war room" of the ite House...
...government was the possibility that "the United States may have wished to emphasize the dangers of a Soviet naval build-up to persuade Congress to authorize additional defense funds...
...By January, 1971, Ecuador has seized at least 17 U.S...
...Levinson replied that to the extent that private capital contributes to economic growth, assuming that no deliberate effort is made to turn society upside down, it would not provide significant places for the marginal masses in the system...
...It may be better to look at security from this point of view rather than in terms of direct threats against the United States...
...The group was composed of British and American scholars, diplomats, and intellectuals...
...f ~-- ~;I ~"- Chase Moohotta n ank-pres...
...This is the modern defense of U.S...
...That the region today is comparatively tranquil, that rural insurgency, whether directed from Havana or indigenously based, has almost disappeared, that communist successes have been very few -- these realities noted by some as indicating the soundness of earlier policies...
...He suggested further that the group should maintain its chairman and its membership, but that the members should share the responsibility of getting ad- ditional "resource people" to join them...
...S A...
...foreign policy were in the totality of the remarks made by Messrs...
...Embassy in Cuba during the Revolution...
...High Commissioner to Germany after Truman convinced him to leave his World Bank post (he was replaced by CFR member Eugene Black...
...Inter-Amer...
...investors is a section stating that "All existing foreign companies will have to sell a majority holding (at least 51 percent) to nationals within ten years in Chile, Colombia and Peru and within 15 years in Bolivia and Ecuador.- 24 - asked whether it was not time to face the fact that negotiation by U.S...
...Marriage of Money and Brains In May of 1919, a group met in Paris at the Majestic Hotel...
...should have a completely hands-off attitude toward U.S...
...Barber responded that the Soviets applied to Japan unsuccessfully for help in developing their mining, and that they are now talking with the Rothschilds in France...
...provides capital from international sources to finance development...
...The question is how do you decide what the United States should do in terms of the different countries...
...He then asked how people may be organized in a state that has no democratic system...
...Cul...
...The small companies were not hurt, at least not directly, Mr...
...Regarding Chile, both the consensus at Vina del Mar and the statements of Allende point to the United States as the cause of all problems...
...Eaton said that what the United States does today and what it will do in a decade may be very different...
...corporations in general...
...In 1961 the first attempt at a total analysis was made...
...Subscribers who renew their subscriptions before December 30, 1971 will be accorded the old rates even if their subscription does not expire until 1972.-2 - The CFR: Fifty Years of Imperialism Since 1939 the attention of the elite (elite: a croup of men, similar in interest and outlook, shaping events from invulnerable positions behind 'Le scenes) shifted from domestic problems--centered in the thirties around slump--to international problems--centered in the forties and fifties around war...
...De Rosso, Alphonse - Standard Oil Co...
...Campbell stated that it had been set up to consider the whole rubric of U.S.-Latin Amer- ican relations, particularly in light of the changes in Latin America in the last two years and in light of the Rockefeller report and other proprosals...
...Chace, returning to the question of Chile, said that Allende, for domestic political reasons, is operating within the letter of the law, but he is absolutely determined to acquire the assets of the foreign companies and achieve a Marxist state...
...CFR members not only drew up the original plans of the Marshall Plan but were its chief protagonists in the implementation of what was, up to that time, the largest single aid venture in American history .-4Averill Harriman, CFR member and partner in the Wall Street financial-banking house of Brown Brothers, Harriman (which nurtured important European interests following World War I) led an important committee, the Harriman Committee, which was the principal body in structuring the Marshall Plan...
...As a former member of the Wall Street law firm of Milbank, Tweed, Hadley, and McCloy, and as former World Bank President, McCloy was well acquainte' with the needs of American capitalists...
...In Mexico, U.S...
...imports about 15 percent of the copper it consumes, about 30 percent of the lead, and something over 40 percent of the zinc...
...Four U.S...
...A special OAS meeting was convened to discuss this problem, and in the first decisive victory suffered by the United States in this organization, all of the other countries supported Ecuador...
...On this point Anaconda wanted the system of partical return, similar to the Chilean system, rather than total return and exchange as then required by the Peruvian Central Bank...
...This is an especially important time in U.S.-Latin American relations...
...Rogers noted that this is a persistent dilemma.tudes toward democracies and dictatorships was an old Mr...
...policy: The formation of NATO, the founding of the United Nations, the inclusion of Greenland into the realm of the Monroe Doctrine, and most importantly, the creation of what has become known as the Marshall Plan...
...Archibald thought this a slim possibility, but pointed to the lack of enthusiasm among Peruvian private investors...
...Sedwitz noted that virtually nothing had been said about multilateral approaches to these problems, or on the possible role of inter-American organizations...
...This crisis ends an era, more than the press has recognized...
...The United States should frankly acknowledge the role of senior partner and should take some initiatives: 1) push for the Kindelberger*mechanism in the international investment field and move toward establishment of an agency comparable to the machinery of GATT to which multinational corporations might repair in dealing with trouble...
...He did not think that U.S...
...policy...
...He asked whether the dynamics of the situation lead Allende to negotiate or to expropriate...
...The Sertice has grown...
...They know they have ultimate power to take it over, but national capital is sufficient so that they feel in control of the situation and reasonable self-satisfied...
...Alarmed by the expropriations of American corporations ) by Peru and Chile, and by the Andean Code, Javits said that "the time has come to draw the line against bla- tantly discriminatory injustice and against confisca- tion...
...Plank observed that the Anaconda story has not been well-told in the American press...
...Participants included William Pfaff of the Hudson Institute, and Arthur Schlesinger of New York University...
...The Brazilians express a confidence and a sense of latitude in their treatment of foreign investment...
...He questioned that very seriously...
...Barber siad that the assurance that the U.S...
...There are differences between single-product companies and companies that are highly diversified...
...Rockefeller replied that his company was trying to keep alive economically and meanwhile sell out, and that this plan had been successful in Chile...
...Rockefeller, Rodman C. - International Basic Economy Corp., CFR V. Sedwitz, Walter J. - OAS official, CFR I,IV,V...
...How does the theory look in practice...
...Now the question is merely, will the pace of change be fast enough for most of the people...
...governmental protection was the way to eliminate or reduce the risk...
...Oliver said that the U.S...
...It is no surprise then, that Berle , along with CIA Chief A. Dulles and CIA Deputy Dir...
...aid following the coup...
...now we are demonstrating we cannot solve the problem in the United States itself...
...In ten years it may be too late to let nationalism run its course, but in the next five years perhaps we can afford to see how things develop and keep our hands off...
...The U.S...
...15 percent after taxes...
...I do not mean...
...cit., p. 67...
...The company's plan then envisaged that Anaconda and Dow Mining have 50 percent, the Peruvian government 40 percent, and the IFC 10 percent...
...Quigley said that Anaconda had been in Chile since 1915...
...by 1950 a legal basis for operating had been provided in the Mining Code of 1950, Article 56...
...Gordon pointed out that so far efforts toward formulating investment codes have generally been made by the investing countries, with the exception of the Andean code...
...Rockefeller, noting that the Brazilians are atypical, asked for discussion...
...If the Soviets establish themselves in Brazil, U.S...
...private investment in Latin America...
...Rockefeller said that this had not been the case...
...Some agreements that he had urged the State Department not to apply have already been reached...
...and it is possible to consider Soviet involvement in such events as the Soviet presence in Latin America becomes more extensive and acceptable...
...Turning to Chile, Mr...
...Barlow, William E. - Vision (magazine), CFR I. Bronheim, David - U.S...
...fishing boats resulting in the suspension of military aid by the United States...
...l G17 - "...Latin American societies, no matter how politically sophisticated they may appear to be, no matter how lengthy their experience with the forms and formulas of democratic political practice, are not really to be trusted at free political play...
...Nasser was called "crazy" by many Americans, but he was pushed and reacted in a certain way...
...NATO was perfect, because on the surface it didn't seem like a U.S.-controlled body...
...interest (particularly in view of developments in Chile) to make it possible for the Cuajone project to be completed...
...He noted that outside the Caribbean and Brazil tax incentives are rarely used...
...In keeping with the expanded format, and to cover rising production costs, subscription prices will be raised on January 1, 1972 to $6 per year for individuals ($11 for two years) and $12 a year for institutions ($22 for two years...
...But where is the divorce forms and institutions is prevalent...
...exports primarily through direct loans to overseas buyers...
...Educ...
...Its present Editorial Board is headed by William Bundy (who replaced Hamilton Fish Armstrong last Spring), Alfred Gruenther (of Pan Am and a former military leader in Europe), Henry Kissinger (no mention needed), and George Kennan and John J. McCloy...
...Other CFR publications are annual: Political Handbook of the World, The U.S...
...But the problem in Brazil concerning the marginal masses is Brazil's own problem, not ours...
...of course, that it is "lost" in the sense that the communists have captured it...
...Chile led a twenty-two nation resolution attacking, among other things, the recent 10% surcharge on imports, and placing sole responsibility for the U.S...
...Quigley said that he could not comment on where the U.S...
...In general, we must support international development around the world...
...Barber cited it as an example of the proposition that mining interests differ from other types of investment because the size of the initial investment is enormous and the payout period is very long...
...Allende might decide to be reasonable...
...Campbell said that irrationality and nationalism may be seen all over the world...
...As we will see, the CFR is where the ruling class plans new strategies through its programs of study groups, discussion meetings, and research...
...Chace had spoken are now out of office, so perhaps their programs are no longer to be put into effect...
...interest to intervene...
...Referring to the problem of technological transfer, Mr...
...Let me say in conclusion, though, that I am straining against those parameters, for nothing that can be said about the security situation should be said in a context barren of economic, geo-political, ideological, and cultural factors...
...Bronheim urged seriousness and respect at the diplomatic level...
...Our attitude must be either for strong action or for rolling with the punches and dealing with each situation as it arises...
...In part also, however, it traces to what I suspect is Dr...
...U.S...
...CIAP - Inter-American Committee of the Alliance for Progress...
...Barber what would happen if the U.S...
...He said that he did not know whether Chile would be more like Yugoslavia or Cuba, but that a U.S...
...University of Connecticut...
...In 1922 the Council began publishing Foreign Affairs, without a doubt the most influential magazine in its field, of which more will be said later...
...Beyond that, however, something rather more ominous is emerging in Latin, particularly South America, in good part a result of the emergence of what I take to be profound ideological differences among Latin American regimes...
...Finally, he pointed out that "Latin America" is not a single phenomenon, of course...
...Quigley said about 20 percent, or about 100,000 tons out of the two million that we consume...
...The opposition levels criticism in terms of how the government is doing what it is doing, not over what they wish to do...
...He asked what the investor who is already in Peru or Chile should do, and remarked that those who are not there are staying out...
...I cannot argue with them...
...Air Force-Asst...
...It might be important for the group to delve into the social psyches of the Latin American countries, but do we have the requisite doctor of psychiatry for this...
...But the funds are so restricted that they can accomplish nothing...
...One of the problems of investment is the mythology surrounding it, which is not dispelled by public relations and public information...
...From its inception, the U.S government should be in on the formulation of a deal, and perhaps it should even be out in front...
...7 Many calls must have been put through because just one year after McCloy's appointment, CFR penetration into the federal bureaucracy was staggering...
...Plank may have overstated his case, perhaps, in an effort to stimulate greater discussion...
...GUIDE TO TERMS GATT - General Agreement on Tarriffs and Trade...
...Rockefeller's thesis that international investment is to the 20th century what international trade was to the 19th, and offered a corollary that management services and technology are to the second half of the 20th century what investment was to the first half...
...De Rosso saw no reason why the U.S...
...If their economic performance proves to be good enough, which, to everyone's surprise, it appears to be, then they will be a candidate for aid...
...Krogh offered to send to the hair man some work he had done which bore on the questions dicussed...
...while at the same time its domestic economy is in a crisis and the dollar is losing its value in international monetary circles...
...He then turned the discussion over to Mr...
...and Guyana is still far from having transcended its ugly race-cum-ideology schism...
...Bronheim said that he assumes it is good to have relations with Mexico, although Mexico has a system inconsistent with ours...
...Rogers, in closing the meeting, observed that the topic of national interest had attracted the most attention, with development next...
...strategic interest in copper can be in light of this...
...They are in no position to help the Peruvians...
...Archibald added that Anaconda's proposals had been favorable received in many quarters and that many Peruvians were against the government position...
...fies CINCSOU*, newspaper reports have it, from Panama to Norfolk: a presence of presumed symbolic importance is being removed from the Caribbean...
...Quigley replied that this might occur only in times of international stress...
...All this puts some strings on U.S...
...a legal adjudication system, seems more attractive than unilateral judgments...
...Foreign Service officer in Latin America...
...In the fall of 1969 the Prime Minister- said that he wished to reach a settlement...
...NATO laid the groundwork for similar "allied" defense agreements around the growing empire in the years to follow, including CENTO, SEATO, and the Inter-American Defense pacts...
...We are informed that substantial numbers of Chileans believe that the United States would like to encourage the ChileV military at an appropriate moment to rid La Moneda of its present occupant...
...Further, it is the springboard from which these new strategies can be implemented by members participating in the highest levels of government and holding advisory positions...
...Included in this group were two former chairmen of the Atomic Energy Commission, a Nobel Prize Winner in physics, two former civilian secretaries in the Defense Department, and high ranking officials from the State Department, the CIA, and the three armed services...
...68 percent of the earnings are paid as taxes...
...Rockefeller disagreed, saying that Mexico and Venezuela have done so...
...At the foreign ministers meeting in Chile in May, 1969, twenty-one Latin American nations prepared a document for President Nixon protesting trade and loan restrictions imposed by the United States...
...Levinson said that there is the issue of real or seeming political stability, which may be viewed in terms of the problem of distribution...
...Krogh suggested that over the summer the dialogue of the group should be digested and an outline made from it which could serve as a basis for further discussion in the fall...
...that the United States seemed to have no doctrine...
...But Mr...
...He went on to find M5IMOMD 6flR5 -W u333I INCORPOIRATED D0FlIW OF DIRECT=S that 14 of its current officers and directors out of a total of 22 were also in the Social Register...
...He felt that the effort was worth while, and supported the Javits initiative) He felt that first, perhaps, the most prominent personalities should be involved -- Latin Americans, Europeans, and North Americans-- and then perhaps more formal initiatives and solutions could be set forward...
...I know, however, that the government is supremely intelligent and is also politically sagacious: Latin America, in the last analysis, is neither strategically, politically, economically, nor ideologically of life-or-death importance to the United States...
...The U.S...
...Henry Cabot Lodge Lewis Strauss John Kennedy Arthur Schlesinger, Jr...
...Rockefeller replied that in our investment policy we should recognize that placing a dollar abroad is placing that dollar under foreign sovereignty and foreign law...
...Chace, James - Foreign Affairs (magazine), CFR I,IV,V...
...Quigley said that there were no substantial Chilean holdings here...
...The lesson of the Cuban experience -- or one of them -is never let an insurgency movement, no matter how insignificant it appears to be, survive, for it may gather force and grow...
...vaky asKea wnac manes money gLvLL LLOUgL...
...He asked whether there had been a "damned if you do, damned if you don't" atmosphere or any attempt to heap calumny on the U.S...
...I have preferred to look away from security matters, away from conflict situations potential and actual, toward areas marked by consensus and cooperation, potential and actual...
...in reality it was a mechanism for future U.S...
...AID expropriation guarantees are not a possibility, because we lack the necessary treaty with Peru...
...Rogers, in adjourning for dinner, observed two important points that had not been mentioned: 1) aid levels...
...E. Asian & Pac...
...Alexander also felt that the U.S...
...Chile is currently trying to buy patents from U.S...
...national interests are also involved...
...also, the nature of a needy country's regime makes no difference to the investor...
...Messrs...
...Plank asked what difference it would make if Chile had Migs instead of U.S...
...They seem to be the elite's first step in grappling with the growing problems confronting the United States in Latin America...
...He saw not an appeal by business for the government to come to the rescue (although this is done in times of crisis), but rather an appeal for government to formulate a code that U.S...
...Nr E.&S.Asian Aff...
...protection of investors is counter-productive...
...While Mr...
...On the other hand, Allende, who seems pragmatic, may find himself changing to meet conditions...
...He also noted that U.S...
...The arguments for Latin America's essentiality to the United States in terms of "hard" security are spurious...
...The parties finally arrived at a satisfactory agreement, but then the Belaunde government was overthrown, the IPC affair arose, and there was no basis for further discussion...
...The United States is too important in the region to have a low profile even if that were its preference...
...In part, this is simply because, within the global vision of Dr...
...And so on...
...Monetary Aff...
...Gordon made a point about the question of standards of fair play: the assumption that there is an internationally understood set of rules leads to semantic fuzziness...
...The meeting was a strong expression of Latin American nationalism and of growing anti-U.S...
...When the Creole project began in the 1930's there was no integration of oil activities with the country or people of Venezuela...
...Some do not agree that sharing and more even distribution of wealth is good...
...firm has no leverage at all in Chile at this time...
...Evidently in a short paper, no kind of serious, systematic and comprehensive survey of the region can be achieved...
...Rockefeller oil interests worried - would they be next...
...Olmstead, who was absent: If Chile does not live up to our concept of fairness, should the U.S...
...citizens...
...In 1958 the oil concession policy ended and national oil companies began to develop...
...had looked upon IPC as a case where the government was obligated to make an independent judgment, the outcome might have been different...
...The marginal masses are indeed a likely cause of political explosion, but with various shades of political implications...
...r. Chace said that he had a bleak view of Chile's economic future...
...policy and the need for radically different policies, show a gap between this country and Latin America which perhaps cannot be bridged...
...example of expropriation (in one way or another) of foreign capital invested in our railroads and other enterprises was far from fair...
...Literally, the CFR is where the elites meet, gather information, exchange and evaluate it among themselves, all leading to recommendations on how the U.S...
...did not assist in financing for the Cuajone project...
...of N.Y.-truste Chase Intl...
...Rogers thought that the Japanese, because they themselves had certain very desirable patents in electronics, etc., had been able to force cross-licensing, but Mr...
...As for the establishment of Soviet bases -- for submarines or aircraft -- in Cuba or, potentially, in Chile or elsewhere -- this contingency is viewed as part of the super-power confrontation, a contingency to be dealt with between Washington and Moscow over the heads of Havana or Santiago...
...Feldman asked what is that amendment...
...It is necessary to address oneself to different countries and regimes rather than to the whole area, as each state is different...
...At the CFR annual closed dinner meeting for chairmen or presidents of subscribing corporations in 1970, the speaker was Secretary of the Treasury David Kennedy who spoke on the subject of "International Development - Seven Questions for the Seventies...
...However, it is not inconsistent to disagree with a regime's ideology and still extend aid...
...But my judgment is that top Washington is not greatly concerned -- or at least is substantially less concerned -- with Caribbean developments of more parochial dimensions...
...private investment and Latin American countries...
...Archibald mentioned that he had been involved in the specific negotiating over a long period as a * In 1968, the nationalist military government in Peru expropriated the holdings of the International Petroleum Company, a subsidiary of Standard Oil of New Jersey (valued at some $200 million), in what was virtually the first expropriation of U.S...
...If the Cuajone project fails, it will indicate that confidence is lacking and this will be likely to affect adversely other investment in Peru...
...It is important to develop relations with Latin America that are not neurotic...
...Two other CFR members played major roles in the Iranian crisis as early troubleshooters: Averill Harriman led a team that Truman dispatched to try to ease Middle Eastern tensions...
...government has an active interest...
...Is there a special relationship different from that with Western Europe...
...The members America Council...
...He felt that the situation is quite serious and feared that both sides might turn inward...
...WiB3e B ? ~s~enaRocskte f e Willea A.M...
...I do not mean, of course, that there ever had been, really since the signing of the Rio Treaty,*any fear of a sea-borne invasion from a cis-Atlantic or cis-Pacific source...
...Oliver mentioned that upon returning to the university from public life he had been startled to find among many scholars the opinion that the problem of rich nations and poor nations is insoluble...
...De Rosso's remarks Mr...
...There is reason to believe that these fears will diminish -- indeed, that they are diminishing -- as the President's commitment to disengagement around the world is realized...
...X" was really George Kennan, CFR member and a key strategist of the United States' policy of containment...
...Other participants stated that U.S...
...A CFR member, and a partner in the Wall Street banking-financial house of Brown, Brothers Harriman, Lovett received a briefing in New York at the Council before taking office...
...McCloy took to Germany with him a group of aides who were all CFR members and who had studied Germany while part of the post-war planning groups at the CFR five years before...
...Levinson replied that part of the emotion derives from the fact that the companies have traditionally been regarded as exploiters...
...There is nothing to prevent the Latin Americans from doing the same thing, but the Latin Americans do not have the wherewithal to read the formulae and produce the products...
...The so-called "return to democracy" in Greece never happened...
...The degree to which Latin America might come under Soviet influence is surely a remote problem...
...l to expand on tne luea nat u.S...
...But if bilateral aid programs are instituted, we might treat each country differently...
...government to try to forestall it...
...Krogh said that he had the distinct impression that the business community was not in favor of either Mr...
...Lewis Douglas, CFR member and Ambassador to Britain, also played a key role in the carrying out of the Marshall Plan...
...He said that the traditional Latin American concept of the state as the source of capital, leadership, and responsibility has been powerfully combined in some countries with Marxist-Socialist philosophy, whereas American society has tended to conceive of the state as restrictive of business, that is, in negative terms...
...lie said that Chile will soon become a residual supplier of copper...
...but it is at least possible that a determination has been made at the Pentagon that the Latin Americans can now themselves train their own elite counter-insurgency forces without help from us -- as for helicopters and other counter-insurgency logistical accoutrements, the United States will continue to be a source of supply...
...Krogh inquired what the U.S...
...Rockefeller said that he did not think it is possible to transfer technological skills, which are really a dynamite built into a people, in a short time if at all...
...He said that in the U.S...
...sentiments Mr...
...However, there is much to be * In the 1950's , the Soviet Union poured millions of dollars into Egypt for the construction of the Aswan Dam...
...It is not well defined but it must be...
...Sedwitz said that he also inclined toward a last ditch attempt to arrive at an international code, although previous attempts have not succeeded...
...McCloy, Board Chairman of the CFR from 1953 to 1971, President of the World Bank, Chairman of the Chase Manhattan Bank, U.S...
...oil dominance in the Middle East ousting the British from the top...
...You either give people a chance to participate, and support any change that would bring the masses into the system, meanwhile sacrificing economic growth and not considering the long-term security benefits to the United States, or you maintain that economic growth with slower social growth is the better course...
...Six of the twenty-four Chase Manhattan Bank directors are members of the CFR, the most important being C. Douglas Dillon (former Secretary of the Treasury), J.K, Jamieson (Chairman of Standard Oil of New Jersey), and John B.M...
...oping in'Latin America that the United States is no longer firm about its commitments, and that the U.S...
...Copies of the minuLes were sent to each participant with the following note from the CFR: We should like to remind you that the digest is distributed for the personal use of you alone...
...It was then that large amounts of Rockefeller and Carnegie money began flowing into the newly-formed group...
...elites took firm action, their new European domain would be threatened...
...By 1959 the tax rate had reached the middle 50's, but the government then applied a special tax of 8 percent and a sur-tax of 5 percent which brought the rates up the high 60's...
...It may be necessary to arrive at some other modus vivendi...
...He said that technical transfer is more complicated than the mere purchase of patents...
...With the election of Allende the picture changed...
...This union brought about the incorporation of the Council on Foreign Relations on September 21, 1921...
...He cited the example of IBEC, which is reimbursed for technology and management independent of ownership...
...Many areas of discussion were covered at each meeting...
...Levinson suggested that technology in the form of patents is a commodity that may be straight forwardly bought and sold, and that it is initiative and entrepreneurship that are not "transferable...
...Finally on June 26 an unsigned memorandum of understanding was drafted...
...Quigley said that not much would happen, as the war absorbs only 400,000 tons of copper per year...
...government...
...we also need to look at the U.S...
...Experimentation with political systems in Latin America is inevitable...
...while dictatorships of the right can be as undesirable in their actions, they have tended to be more transitory...
...The inter-American system will be tested as never before in the 1970s...
...If so, the whole problem of Peru may affect the credibility of the multilateral idea, and endanger the multilateral idea...
...Under Sec...
...Chace believed that the generals will survive to carry out their programs...
...companies can help these countries to become less dependent on the U.S...
...Some Latin American countries are standard third-world type countries, and they are bound to play the Soviet card against the United States...
...Today's problems are the inevitable result of the success of earlier American foreign investment programs...
...AT&T1 Ch~~~i_1 C~~~rp.~-diirRockefeller r-dir...
...He observed that the government is called upon anyway in a crisis, so why not recognize the political element from the beginning, instead of waiting for the crisis and then being illprepared to handle it...
...Rogers asked Mr...
...Laylin, John G. - Covington & Burling...
...One of its contemporary finished products is Nixon's Chief Foreign Policy Adviser--Henry Kissinger...
...Velasco's anxiety by withdrawing from the IDB...
...policy...
...He felt that there is an alternative to military government, but Mr...
...OPIC - Overseas Private Investment Corporation...
...Ads in Foreign Affairs are from corporate sources, as are the large Rockefeller, Carnegie, and more recently Ford Foundation grants that have supplied the CFR with the most consistent support through the years...
...Levinson asked whether this did not prove the point he had been making, but Mr...
...copper consumption comes from Latin America...
...Footnotes 1. Council on Foreign Relations, "Programs and Purposes," 1970...
...De Rosso said that he had not made an inventory of questions but rather had prepared a discussion of one timely problem: U.S...
...and Latin America should explore their needs for each other and how both sides can best satisfy them...
...market to Chilean goods...
...Economic Aff...
...It is not a very hopeful situation...
...Feldman said that he agreed with much of what Mr...
...He pointed to the U.S...
...In May Frei said that unless there was renegotiation with Anaconda he would be bound to support an expropriation bill...
...The reaction in the IPC case is still generally regarded as the best we could have had...
...Kermit, after completing his job in overthrowing Mossadegh, became a director and then V.P...
...to the United Nations Chmn., Atomic Energy Comm...
...Gordon agreed, and felt that Santiago, where UNCTAD is to meet, provided the perfect setting for personal contact and discussion...
...t might do well to consult with other governments on this question...
...He referred to Mr...
...The Council is an all white organization , and it was all male until last year...
...with a State Department officer from the Latin American desk...
...government fits into this picture, but that he had kept the government fully informed throughout the negotiations...
...He said that at the local level, there is a good deal of democracy...
...perhaps the cultural syndrome makes this impossible...
...companies are subject to Mexican law...
...Levinson suggested that Japan, having purchased U.S...
...Bronheim urged that the group must define U.S...
...Sedwitz cautioned that this way of thinking may be a fad, and that ideology is not a substitute for economic development...
...To achieve this rate of return from the mine, profits would have to run at their present rate until 1985...
...Also, the United States is interested in a new canal route, and in marijuana control in Mexico...
...Relations-trustee Under Secretary Treas...
...The consortium could act as a buffer between the government and the actual operations of the company...
...Dwight Eisenhower Richard Nixon Nelson Rockefeller Gordan Gray Allen Dulles John Foster Dulles Christian Herter Livingston Merchant Joseph Satterthwaite Douglas Dillon Robert Murphy Francis Wilcox Robert Anderson Wm...
...however, he did not see the Eastern bloc involved...
...Lifek...
...interests...
...One of the most important was "X" - the author of an article that appeared in the July, 1947, issue of Foreign Affairs...
...Quigley agreed that Anaconda had never made any adequate attempt to influence public opinion, that the compnay had a policy of doing its job and not interfering in local politics...
...government incentives for promoting private investment in the underdeveloped world...
...Archibald, Frank W. - No available information...
...These might be examined in more detail...
...He observed a strong desire for nation-building on their own among the young in Peru and elsewhere, and said that they reject economic development along established lines in favor of political development...
...the Andean group some- what in disarray...
...The United States is threatened on other fronts as well...
...Levinson attach to the role of capital in providing a better place in society for the marginal masses...
...foreign policy, and it was followed fr years to come, straight into Vietnam...
...Alexander also disagreed that Brazil's situation could properly be called democratic...
...could strike at the Soviet Union...
...This agency directs all U.S...
...Bronheim, who said that his Center had done a study of the Panama Canal, stated that the canal is * David Bronheim is the Director for the Center of Inter-American Relations, which is a Rockefeller inspired offshoot of the CFR established to deal with problems relating to Latin America...
...He said he hoped the discussions would focus on the question of U.S.-Latin American relations, not just as a review of U.S...
...Behind the doors of this organization at 58 East 68th Street is what has been called "the real U.S...
...They are conditioned to such views by 1) seeing U.S...
...Perhaps for the majority, the issues of highest priority are freedom from domination by the United States and the need for more rapid economic and social...
...Indeed the major communist accomplishments -- the Castro regime in Cuba and the undoubted communist advance marked by Allende's accession in Chile -- can be taken to validate security postures of the Eisenhower, Kennedy and Johnson years...
...Under Sec...
...Initially, the CFR was composed of 209 members, 15 of whom were directors, and one permanent official, Hamilton Fish Armstrong...
...If we believe in democracy, the United States should use its influence where possible in favor of it...
...ambassador to the Organization of American States (OAS...
...The question then is, should there be an attempt by governments to articulate these, or should multilateral agencies set forth these rules and make their observance by all obligatory...
...Levinson's critique of "traditional" U.S...
...Now it is trying to be all l things to all men, and its primary concern is with the pace of change...
...obligations to the companies...
...purpose...
...Rockefeller said that it would be nice if all agencies had one idea on this problem...
...Through this, the government has destroyed their 500,000-ton per year market, as the consumers have been converting to use of soy meal, etc., so as not to be dependent upon the whim of government...
...Barber and Archiblad stated that at the time they felt it would have been unwise to provoke a confrontation on this issue...
...This functions as a program to brief the diplomats, a lower level of the elite than representatives of the corporate giants, in exactly what interests they are protecting...
...and Mexico have an informal alliance, and that the U.S...
...The background paper prepared by John Plank was released in part by the Associated Press on September 6, 1971...
...have been hurt...
...Murden, Forrest D., Jr...
...C. D Dillo-, Allen Dulles B. F . Goodrich Co.-dir...
...IDB - Inter-American Development Bank...
...Other CFR members played leading roles in the formulation of policies that led to the Truman Doctrine...
...They can learn about the labor market, recent political developments, past experience of other multinationals, and other information needed to correctly evaluate risk...
...Referring to the Peruvians' desire for foreign investment, Mr...
...One of the best things we coulu uo LO help Latin America is to liberalize trading arrangements...
...Speakers at the Corporation Service's seminars in 1970 included Herman Kahn, CFR member and the director of the notorious Hudson Institute, a cunter-insurgency think tank, part of the vast' Pentagon research nexus...
...They are held 12 times a month between September and June...
...The fragmentation of the Communist bloc, nationalism, and the Sino-Soviet rivalry have all destroyed the myth of the monolithic Communist threat and changed the character of the Cold War...
...5. Mary Davison, The Profound Revolution (Greater Nebbraskan, 1966, Omaha...
...Szulc then asked how we could be sure that the government will indeed be able to "hack it by themselves...
...The bargaining power of Standard Oil (New Jersey) declined, while Venezuela's bargaining power increased, due especially to the recent global scarcity of petroleum...
...De Rosso, to underline Mr...
...Truman moved fast to protect the U.S...
...The Council established four study groups: Security and Armaments, Economic and Financial, Political, and Territorial...
...He said it was not useful to argue now where U.S...
...The Rockefeller Brothers Fund finances the International Affairs Fellowships...
...BR TOP SS I N THE C F R dck.f...
...The real question is, whether U.S...
...I would further assume that most Latin Americans would credit the Soviet Union leadership with having reached the same conclusion, and that therefore most Latin Americans would not take the contingency very seriously: that question was probably resolved for the forseeable future in 1962?*although a salutary reminder of the United States position was given in the fall of 1970 in relation to the submarine-tender matter.* 2) There is a potential security threat perceived from the United States itself...
...If the report is accurate, I can only guess at the answer this man, this predecessor, anticipated and preferred...
...By late October 1969, an agreement had been reached and initiated...
...of State for Latin American affairs, and a drafter of the Alliance for Progress...
...Archibald said that his negotiations were then with a three man committee consisting of the Prime Minister, the Minister of Mines, and the inister of Finance, all of them generals...
...Spec.Rep.for Trade Negot'ns...
...foreign investments throughout the world...
...Pratt was a director of the original Standard Oil Trust and is still closely associated with Rockefeller interests...
...Rockefeller commented that going into a country with onehundred percent U.S...
...Rogers objected that the group discussions would have to be "artificial" in that they would not be able to deal with every factor in policy...
...Alexander contrasted the appearance of U.S...
...In Chile there is complete quiet on this point...
...After the government said that it would take a 40 percent interest rather than 51 percent, the company approached the IBRD, the IFC, the Eximbank, and others to finance the operation...
...Chace said that while theoretically there is an alternative, realistically there is none...
...Szulc then asked how the church related to the situation in Peru...
...He said that prior to Allende's introduction of constitutional reform he had tried unsuccessfully, to influence the U.S...
...tolerate the establishment of strategically threatening installations by the Soviet Union anywhere in this hemisphere...
...of this year, Javits urged the establishment by Congress of an organization comparable to GATT to deal with investment problems, especially where the activities of multi-national corporations are concerned...
...White: "If you don't know how to pronounce a word, say it loud...
...De Rosso if he supported the application of the Hickenlooper amendment, and Mr...
...The World Bank is proposing the formation of the International Investment Insurance Agency, a multilateral project guaranteeing private investment...
...government has been exploitative only as the uncritical ultimate protector of U.S business...
...Campbell had spoken of fall meetings, and that this would be one full year before presidential elections...
...Chace thought that in general it supports the regime...
...for the Latin Americans the problem derives from unduly raised expectations and failures in development programs...
...Sec...
...He agreed that one had to look at the possibility of the Soviets' being able to use wider military operations, but this must not be allowed to color too much the way we look at the area...
...domination...
...78P!x Josephs laf~l~~D~r:# SSllivan & Coosell-ptnr...
...Ecuador, Peru and Bolivia, which had been less dependent on the U.S...
...Rogers asked about the question of approving or disapproving a regime...
...ql-- mic and political aspects of a country's life...
...He said we should treat all countries the same in this sphere and not reprimand or condescend...
...After the formal signing and before execution of the related minutea", the Peruvians changed the wording of one clause and were cought up on this by the company...
...These must go through the canal, after being loaded in Atlantic ports...
...nrogress...
...All this should be regarded like any other commodity, and traded as such...
...Greece and Iran were only part of imperialism's developing pattern: The more the U.S...
...The inevitable drop in productivity is to be paid for by copper revenues, but he questioned whether this plan will work since the revenues are falling...
...2) The adequacy of our perceptions may be questioned, e.g., the assumption that economic growth is in itself good for Latin America...
...government a business interest would only complicate the situation...
...Again, my guess is that he has discounted that distinction, and that even the Caribbean is to be approached within the context of global politics and most specifically with an eye toward Moscow and Moscow's military capabilities...
...In Peru, the military has adopted the populist rhetoric to stay in power...
...De Rosso said he did not agree with the idea of a government role, that giving the U.S...
...IBEC - International Basic Economy Corporation...
...Levinson, is talking about depoliticizing aid, but now he speaks for politicizing business...
...He said that Creole Petroleum's activities were big enough to "make a difference," while those of IBEC are not...
...Honduras and Salvadoran remain deeply distrustful of one another...
...Szulc, however, suggested that if the group does meet next year, it would be a good time to produce a report looking at the whole situation and perhaps presenting the candidates with the group's views...
...Finally, Mr...
...capacity to be helpful and influential...
...In providing this program for members the CFR tightens its apparatus of performing its duties as the link between the corporations and the policy makers in power...
...Rogers again expressed a sense of caution, and observed that the group had set out to meet and talk, and not to arrive at a consensus...
...and the kidnapping tactic of the urban guerrillas, both there and elsewhere, is bringing more opprobrium than laurels to them...
...He did, however, support setting up codes to fill existing vacuums...
...The bill outlines the perimeters of negotiation, value of properties, and ultimate indemnification...
...Regarding security, the United States has greater bargaining power with the Soviets if we have friendly governments for neighbors...
...Robert McNamara Cyrus Vance Gen.Maxwell Taylor Stanley Resor Arthur Goldberg Glenn Seaborg John Gardner W.M.Blumenthal William Foster .. t4n...
...Where it exists, it is better to have political interests overt and explicit from the beginning...
...He said that the concept of national awareness is very painful but very necessary...
...I cannot argue with those who say to me, "If we had followed the policies that you and other sentimental visionaries were advocating, we'd have long since lost the hemisphere...
...Venezuela in the throes of trying to arrive at some code...
...For example, if expropriation without compensation occurs, the INF or the IBRD could dock the country's assessed contribution for reimbursement and institute penalties until payment is made...
...The CFR prepared a study on how the United States could be substituted for the European market...
...Feldman replied determining the amount of compensation for equity...
...CFR members in the State Department moved through Secretary John Foster Dulles, and through Director of the CIA Allen Dulles, to crush a nationalist government in Iran...
...fishing boats...
...U.S...
...With Harriman was Walter J. Levy, an oil consultant for Esso, Caltex and Shell...
...The new agreement was negotiated for the United States by Herbert Hoover, Jr., and Howard Page, both CFR members (Page was also a V.P...
...Levinson, citing the 1967 negotiations with the Frei government, said that many people thought that Chile had gotten a bad deal, especially in view of the rise in copper prices, from which Chile did not benefit...
...And nationalism may be the saving grace: if we allow it to run its course without pressuring it one way or the other, we may have independent and friendly states in that area...
...conference of foreign ministers held in Costa Rica in the summer of 1971, the Latin American nations expressed dissatisfaction with U.S...
...The developtment of key infrastructure projects is seen as a method by which a superpower gains access to the country's economy.- 25 - said for Mr...
...He said that the shadow over the Peruvian government is not Marx but De Gaulle, because the generals themselves have read him...
...Events like those of May and June, q196*tend to linger longer in Latin American minds than they do in ours...
...Eaton's point about the demonstration effect of policy, felt that we will enter a period soon when choices will be necessary...
...Only the private sector can supply this capital...
...Alexander, Robert J. - Latin Americanist (Rutgers University), CFR I,IV,V...
...If, as some U.S...
...it must differentiate between countries...
...These conditions press the situation into a time frame and the question arises how the economy is going to work, especially if there are drastic reforms...
...The Brazilian generals are behaving with supreme self-confidence...
...I shall be talking with particular boldness and confidency in this brief paper...
...Some of our earlier assumptions have been turned upside down...
...thus the U.S...
...Doing what can be done to protect those essential twelve minutes is, I suppose, much on the minds of top Washington officials...
...Guerrillas were making important gains, and unless U.S...
...He said that we have been trying to generalize about a very complex topic, which we have first considered in terms of political and then economic terms...
...Assistant Secretary of State for Inter-American Affairs (1965-66...
...Eaton, referring to Mr...
...American Metal Climax Co.-d r. ' 5C U.S...
...He said that this had been tried in the meeting at Trinidad, but that the agenda was not satisfactory...
...C.orp.-dir...
...Frank Pace,Jr...
...M...
...1971/ Richard Nixon Peter Flanigan Henry Kissinger John Irwin II Charles Meyer Joseph J. Sisco John Richardson, Jr...
...Campbell suggested looking at the pattern of U.S.-Latin American relations to see whether government subsidies and programs are called for or whether U.S...
...also participates...
...Brdee Asia Found.-trustee ,, 4aJohn J. McClov Inst...
...government could get itself toge- ther, but he felt that government and U.S business should take the lead in articulating ideas and getting new mind sets into the open for discussion...
...The CFR also planned ahead: a full two years before the attack on Pearl Harbor, the Council evaluated the shift America would have to make in case of war...
...Olmstead said that the group must ask what each country's national interest is, including our own...
...However, he felt the ultimate outcome would have been the same...
...This bank owned 5% of the stock of the National Sugar Refining Co., rho relied on the Dominican Republic as a major sugar supplier...
...Campbell suggested that some papers might be presented at future meetings...
...Our "low-profile" policy is for a low public profile, but the private profile remains just the same or even is enlarged...
...Cuba cannot be called a failure because of the effect of U.S...
...involvement...
...We need to look carefully at prevalent myths to see how relevant they are...
...and 2) the loss of confidence in U.S...
...CFR proposed the founding of NATO to protect this new area of investment...
...Elliot Richardson Carl Gilbert Gerard Smith 72 Council on ores n Relations Annual Report 156 1962---- 1967 1971 . Council on oreign Relations Annual Report 1956...
...Levinson suggested looking at the decade of the 1960s in Cuba...
...The following recommendations of the four CFR Study Groups were made into official U.S...
...Rockefeller and Schwartz would lead the discussion, which was to complement that of the previous meeting on investment...
...differences exist between regionally based firms and product-based corporations...
...Levinson repeated that since the companies invoke the U.S...
...This period will precede the development of any code...
...He asked what the implications for U.S...
...Bronheim suggested that the group look at the individual countries today and ask in each case what the U.S...
...16 - of vital significance to the United States only in the event of a protracted land war in Asia (which is what we seem to be fighting these days...
...He suggested that in Peru, Bolivia, and Ecuador there is a real chance of an emerging Indian racist issue which could lead to real instability...
...and Paul Warburg and Otto Kahn were the nucleus of the Wall Street investment house of Kuhn, Loeb & Co., closely allied to Morgan banking interests...
...Levinson's remarks...
...If countries follow the pattern of Chile and Peru in nationalizing and not paying, the investment community will surely take some action...
...The study showed that the substitution could be done easily in the Caribbean, Central America, Colombia and Venezuela since these areas already had "a high degree of dependence upon the United States as a market for exports and as a source of imports...
...Not only have I taken that advice literally...
...Vaky suggested that dangerous rivalries with neighbors might develop and that these might be potentially explosive...
...De Rosso questioned the value of such an ideological approach...
...He commented that no popular base is being developed Brazil...
...Quigley's analysis of the sit-uation is correct, Mr...
...Out of this meeting came the formation of the Anglo-American Institute of Foreign Relations, the British branch calling itself Chatam House, and the American branch naming itself the American Institute...
...He said that the ace in Japan's hand had been its labor pool...
...Can you put Chile, say, behind Iran as regards its importance to the United States...
...The Chairman opened the meeting, remarking that the group members were familiar with one another and had been thinking about this particular subject for many years...
...national interest in particular countries around the world...
...Levinson recalled that President Velasco*recently said that maybe it is time for Latin Americans to consider whether the IDB is useful to them, since the U.S manipulates it so much...
...technology, but Mr...
...Krogh observed that Mr...
...Krogh observed that we seem to have an interregnum at the moment: the United States is more relaxed about its security problems in Latin America, and the U.S.S.R...
...A Look into the Future...
...Perhaps the Alliance for Progress was a high point in Hemisphere harmony of interests which we will not be able to reach again...
...Rockefeller asked where the pressure to hurry comes from, and Mr...
...Corp.-chmn...
...The U.S...
...In 1940, Nelson Rockefeller and a group of other businessmen in the CFR prepared a memo for President Roosevelt's assistant array Hopkins calling for a new federa] agency to defend (and expand) II.S...
...Levinson suggested that this fact reflects the events of the past decade and that there will be the possibility for radicalization once the issue had been opened even slightly on a mass scale...
...of Treas.-'60-' 65 6 F ~quitahle Life Ass...
...Gordon asked what would happen to the copper market when the war in Indochina ends...
...and would be in a position to threaten the U.S...
...Allende is careful to obey the law, though there is a possibility of dissolution of Parliament and an attempt to achieve goals by plebiscite...
...What is needed are international accessibility to technology, rules governing royalties, management fees, etc...
...Dan Smoot, former FBI agent turned ultra-right wing Texas Congressman, says in his widely read The Invisible Government that CFR members are trustees of the three major foundations: 12 out of the 20 Rockefeller Foundation trustees are in the CFR...
...stake in Europe...
...IMF - International Monetary Fund...
...However, during subsequent negotiations, the IFC demanded of Anaconda a back-up guarantee, which Anaconda did not furnish...
...policy makes three assumptions, none of which is credible any longer: 1) the Monroe Doctrine...
...the Latin American Colonel views his country, the hemisphere and the world differently now than in the recent past the security situation is seen to be changed, whether viewed from Uruguay or El Salvador...
...property without adequate compensation...
...He felt that an initiative by the U.S...
...Quigley reiterated the necessity for a mixed-mining company type approach to foreign holdings in Peru...
...He wondered why the United States should expend its prestige and energy on such issues as the kidnapping.of diplomats...
...Labor is organized into unions, Valencia, Venezuela, as a result of the Creole project, is today a major pool of management and labor, available to national and foreign investors...
...moreover, it is a good time to look at what the Nixon Administration is saying and doing about Latin America...
...and 3) that Cold War competition makes it necessary for the United States to keep up its influence in its own backyard in order not to lose world prestige and jeopardize the world balance...
...The Truman Doctrine was a watershed in U.S...
...designed to render investment assistance, to streamline and expand U.S...
...Rockefeller distributed an outline of some of his thought (cf...
...In the Kennedy years he had seen a highly doctrinaire posture in Washington on what kind of governments we would accept...
...foreign investments, has stopped guaranteeing investments in the Andean countries as a result of the provisions limiting investments contained in the Andean Cde...
...U.S...
...The binational example of successful and mutually profitable relationships is encouraging, but we must learn to behave as well on the multi-national scale...
...They will probably go ahead with expropriation as rapidly as possible, and "make do after the fact...
...He said that the government is well-intentioned, by the admission even of the opposition, which merely believes that the government cannot perform...
...For example, we have been hectoring Brazil for ten years about inflation...
...The group should ask: do we want political mileage or development in Latin America...
...Council on Foreign Relations Discussion Meeting Report THE UNITED STATES AND LATIN AMERICA First Meeting: December 14, 1970 Digest of Discussion (This digest has not been edited by the participants...
...It was blacked out in the U.S...
...it is becoming less predictable and hence less easily controlled...
...Since 1961, CIDOC has studied current social and cultural phenonmena in Latin America...
Vol. 5 • November 1971 • No. 7
