FLIGHT OF FUNDS FROM LATIN AREAS PERILS THE ALLIANCE FOR PROGRESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000300360007-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 16, 2016
• Document Release Date: October 28, 1998
• Sequence Number: 7
• Publication Date: March 27, 1962
• Content Type: NSPR

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CPYRGHT
BY RO3ERT S. ALLEN
and PAUL SCOTT
r n nne y s
highly touted Alliance for
Progress program for Lat-
in America is in real trou-
ble -and' how:
The lagging, sagging S20
billion, , 10-year self-help
program hasn't even got-
ten off the ground despite
its tumultuous send-off by
the President and Con-
gress a year ago, and its
acceptance by all members
of the Organization of
American States.
The program is spinning
its wheels in the Red
sands of Cuba and will
continue to do so until the
President rids the hemis-
phere of Fidel Castro's
Communist regime.
This is the guts of-an.
,. ell! cnce roundup, on the
darkening Latin American
situation that i's-now, being
cif culated within the Ken-
nedy administration.
It bluntly states that the
fears of Castro's Commu-
nist revolution spreading
to other countries is forc-
ing capital to flee from
CPYRGHT
faster rate than the U.S.
can pump it into the hemi-
sphere.
The -_intclligence,,esti-
nmat(, is that $6.7 billion in
capital has left Latin
America since Castro shot
his way to power in Janu-
ary 1050. The money went
to Switzerland, West Ger-
many, Italy and the Unit-
ed States, where it was in-
vested or banked.
The most dramatic
flight of funds is from Bra-
zil, Venezuela and Mexico,
where Castro's S o v i e t-
trained agents are infil-
trating by the hundreds.
Brazil, where the gov-
ernment favors a coexist-
ence policy with Castro's
Reds, has lost $1.6 billion;
Venezuela $1.4 billion; and
Mexico S300 million.
Even if this damaging
outflow of capita! can be
stopped under the impact
of the Alliance for Prog-
ress program, it will take
the United States five
years to pump the "lost"
money back into the Latin
American economy at the
rate of planned expendi-
tures.
Under the President's
program, a total of $877
million of the $1,112,500,-
000 provided for develop-
ment.loans this year has
been "committed," but
only $112 million has been
turned over to the borrow-
ers.
President Kennedy has
reacted to this dark news
by shaking up the program
With a strange game of
musical chairs.
He grabbed Richard Bis- Ambassador Thomas C.
sell, iIi terii ind"6t tht ill- Mann, now in Mexico; Am-
fated Cuban invasion, on bassador R o b e r t Wood-
hi jepartitre.. from.._..the ward, who is awaiting a
Central. Intelligence Agen- new assignment, and Ed-
cy,and assigned him to win Martin, former assist-
thr-A'hite:. louse' to see ant secretary of state for
what could be done to re- economic affairs.
verse this flo_wy: ofcapita :-- The President shifted
"Bissell whose Wide in- Richard N. Goodwin, his
fluence has helped him 30-year-old assistant spe-
land top jobs in both the cial counsel, to the deputy
Kennedy and Eisenhower assistant secretary post-to
administrations, is also in boost the program.
charge of drawing up a There now are signs that
priority list, o? hiowV funcTs` the freewheeling Goodwin
should he,spent for ' the will be uiygl) ed,wii,the next'
multi billion-doolar aid pro- s 'i ' Three"very in ill
gram. ential legislators are storm-
The latter assignment ing the White House for
gives him the power al- Goodwin's scalp for under-
most to break or make cutting Secretary of State
governments in the hen-ii- Rusk at the recent foreign
sphere. ministers conference at
The President also is Punta del Este. They -in-
calling on the Peace Corps elude Sens. Bourke Hicken-
to i.elp save his Alliance looper (R-la.) and John
program. Sparkman (D-Ala,), both
He "borrowed" William members of the Senate
Haddad, associate director Foreign Relations Commit
of -the Peace Corps, from tee, and Rep. Armistead I.
his brotherin-Iaw, Sargent Selden Jr. (D-Ala.), chain
Shriver, d i r e c t o r, to man of the House Foreign'a
"straighten out" the Latin- Affairs Subcommittee on!
American aid p r o g r a m. Latin America. ;l
Haddad, who married the The word from within
adopted daughter of for- the White House is that
ner Ambassador John Hay the President is urgiii
Whitney, was loaned to Goodwin, a campaign as
he State Department to sociate, to take an ?ambas-.
peed up loans to countries sadorship in order to get
aking part in the program. him out of the State De
Other major changes in partment.
fficials handling Latin- A number of Goodwin's
American problems in- activities have been quiet-
lude the rapid-fire switch- ly turned over to Tendore
ing of officials holding the Moscoso, whom the Presi-
trategic position of assist- dent recently brought in.
nt secretary of state for to handle the Alliance pro-
inter-American affairs, gram within the Agency
Within less than a year, of International Develop-
this post has been filled by went.
Approved For Release 2000/05/24: CIA-RDP75-00149R000300360007-6