LATIN AMERICAN TRENDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A000700060001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 9, 2016
• Document Release Date: April 23, 2001
• Sequence Number: 1
• Publication Date: April 2, 1975
• Content Type: NOTES

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secret
No Foreign Dissem
gUIFT Kn, U~go
Latin American Trends
Secret
Apri~ 2, 1975
No. 0503/75
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LATIN AMERICAN TRENDS
This publication is prepared for regional specialists in the Washington com-
munity by the Western Hemisphere Division, Office of Current Intelligence,
with occasional contributions from other offices within the Directorate of
Intelligence. Comments and queries are welcome. They should be directed to
the authors of the individual articles.
CONTENTS
April 2, 1974
Panama: Communist Leader
Returns . . . . . . . . . . . . . . . . . . . 3
A US Naval Base on Grenada? . . . . . . . . . . 4
Dominica: Landslide for John . . . . . . . . . 6
Chile: Uncertainty on Human
Rights Commission . . . . . . . . . . . . . . 7
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Colombia: Politics and AID
A clash of wills between Colombia's Liberal
president, Alfonso Lopez Michelsen, and the Liberal-
controlled congress has apparently cost Colombia
$3.9 million in USAID funds.
At issue was Lopez' campaign promise to replace
the present Liberal comptroller general with a Con-
servative as part of his compliance with the consti-
tutional provision for continuing Liberal-Conservative
parity in appointive office until 1978. When Lopez
sought to facilitate making such a change by sending
congress a bill to restructure the comptroller's of-
fice completely, the legislators balked. Meanwhile,
the present comptroller was inexplicably remiss in
his management of the remaining $3.9 million of a
1972 AID loan earmarked for use in urban development
by December 1974.
By March 31 of every year, the comptroller is re-
quired to prepare a certification of availability for
disbursement covering all funds appropriated but not
expended during the previous calendar year. As it
now develops, the $3.9 million in question, although
appropriated, was neither spent nor properly certi-
fied as available. This brings into play an exist-
ing AID policy of providing no new funds until prior
allocations have been disbursed. Pending AID loans
affecting the education, health, and urban regional
AID sectors in Colombia are now being held up as a
result of the comptroller's inaction.
What all this means politically remains some-
thing of a mystery, but what should have been the
routine bureaucratic management of loan funds has led
to an interruption in AID loans and a possible con-
frontation between the Liberal President and the Lib-
eral congress. Another mystery is how this can most
easily be resolved to the satisfaction of USAID, since
April 2, 1975
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there seems to be no precedent, at least not in
Colombia. In any case, action is unlikely to come
until the next regular session of congress, which
convenes on July 20. (CONFIDENTIAL)
April 2, 1975
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Panama: Communist Leader Returns
Ruben Dario Souza, secretary-general of,the
People's Party, Panama's Moscow-line Communist party,
was allowed to return from the Soviet Union last
week, presumably on the basis of some promise to
help in General Torrijos' campaign to prepare the
public for a compromise draft canal treaty.
Since the National Guard took power in 1968,
Souza has been forced to spend far more time in
Moscow than in Panama. He was sent into exile there
in 1969, and was not allowed back into Panama until
four years later. He was abroad last year when a
dispute for control of the Federation of Panamanian
Students arose between the party and General Torrijos,
and the irate Torrijos ordered the Guard to prevent
Souza from returning to Panama. In addition, his
more capable brother Cleto, who had led the effort
to keep the Student Federation firmly in the party's
camp, was ejected from the country by Torrijos.
The length of Souza's present stay in Panama will
depend on how well the part does its .Job for,Torrijos.
the Guard will
be able to check closely the party's compliance with
Torrijos' orders. Any attempt to doublecross Torrijos,
such as by attempting to regain lost ground in the
student federation, will immediately earn Souza a one-
way ticket back to Moscow. (CONFIDENTIAL/NO FOREIGN
DISSEM)
April 2, 1975
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A US Naval Base on Grenada?
Prime Minister Eric Gairy has added an unusual
--if somewhat impractical--twist to his approach to
Grenadian-US relations.
When Ambassador Britton presented his credentials
in late February, Gairy offered to provide facilities
for construction of a US naval base on the island.
While this would, as Gairy pointed out, provide Grenada
an economic boost, it would pose difficulties. In the
context of Grenada's serious economic problems, the
quid pro quo for such an establishment could be very
expensive and, given Gairy's past conduct, grow more
so with the passage of time.
otherwise, Gairy repeated his usual thesis that
the United States had an obligation to bail out Grenada's
sinking economy. He chided Ambassador Britton on the
vast sums the United States expends on Asian countries
while neglecting its Caribbean neighbors. Gairy stated
that the US policy of directing its regional development
aid through the Caribbean Development Bank was a complete
failure because of the bank's overly stringent loan re-
quirements and red tape.
The prime minister announced that he had formed an
economic planning unit in his office, which would facili-
tate long-term planning and coordinate foreign assistance.
He indicated that several countries had expressed an
interested in participating in Grenadian development
under certain conditions but that he found their political
philosophies unacceptable.
Citing smuggling and the need for better equipped
police and defense forces, Gairy made an appeal for sur-
plus US defense materiel, including patrol boats, ammuni-
tion, and trucks of various sizes.
Because pre-independence disturbances had led to a
serious decline in foreign investment and tourist income,
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Gairy suggested that the United States should use
both official and private agencies to create a more
favorable image for Grenada. He expressed his
gratitude for the US Peace Cor s program on Grenada;
but, demonstrating a facet of his
personality, he charge t a e ormer director of
the local program had infected Peace Corps volunteers
with anti-Gairy biases. (CONFIDENTIAL)
April 2, 1975
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Dominica: Landslide for John
In a surprising landslide, Premier Patrick John's
Dominica Labor Party was returned to power in the
general election on March 24., capturing 16 of the 21
seats in the House of Assembly. Voter turn-out was
unusually high--80 percent of those registered--and
there have been few complaints of election irregular-
ities.
The new cabinet was installed on March 31 with
John holding the key trade, development and security
portfolios--a strong indication that he will maintain
his tough law-and-order stance, as well as attempt to
revive Dominica's depressed economy.
To attract the support of a steadily younger
population whose demands on government and political
astuteness increase each year, John, himself 38, has
apparently made a conscious decision to present a new
cabinet of younger, better educated and more effective
ministers. Only two are past their 30's; all are
fairly well educated by Dominican standards; and they
will likely compensate for any lack of experience with
fresh approaches and increased drive. (CONFIDENTIAL)
April 2, 1975
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Phone: -5115
Chile: Uncertainty on Human Rights Commission
Conflicting statements by Foreign Minister
Carvajal and President Pinochet indicate that the
military government is still undecided whether to
allow the United Nations Human Rights Commission
to send a study group to Chile in late June.
Carvajal last week met with the Chilean dip-
lQmats who attended the commission's recent meet-
ing in Geneva. These "observers" worked hard to
fend off a Soviet-sponsored condemnation and secure
passage of a resolution creating the study group
instead. Carvajal told them that the government was
waiting for an official message from the UN so that
Chile can send its "written acceptance" of the visit.
Speaking in Punta Arenas the following day, however,
Pinochet reportedly declared that the group would be
welcome only if similar investigations were first
undertaken in Cuba and the Soviet Union. This is in
line with his announcement late last year that the
government no longer would routinely allow outside
probes of the human rights situation and that those
who would judge Chile's performance must demonstrate
equal concern with Communist abuses.
The foreign ministry appears to be at odds with
influential conservatives within and outside the
government on this issue. Carvajal's statement that
acceptance of the investigators is a "sovereign
decision" that serves as an example to other coun-
tries will not placate those who have come to look
upon such missions as insults to Chile.
Pinochet probably did not intend his statement
to be taken literally, but Carvajal's declaration
seem to have been premature. Pinochet might decide
to delay the study group's visit by conditioning it
on consideration of similar complaints against the
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Cubans and Soviets. He undoubtedly realizes that
chances of a commission vote to send a study group
to either country are nil. Such a ploy by Chile
probably would soothe some hurt feelings at home,
but it would also subject the military government
to a new round of international condemnation.
(CONFIDENTIAL)
April 2, 1975
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