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CONTENTS

Statements by

Gruening, Hon. Ernest, U.S. Senator from Alaska.
Javits, Hon. Jacob K., U.S. Senator from New York.

Rusk, Hon. Dean, Secretary of State, accompanied by Hon. Sol. M.
Linowitz, Ambassador to the Organization of American States, and
Hon. Anthony M. Solomon, Assistant Secretary of State for Eco-
nomic Affairs

Insertions for the record

Text of Message from the President on the Latin American Summit
Conference, H. Doc. 84, March 13, 1967---

Text of S. J. Res. 53, introduced March 13, 1967.

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Text of amendment (in the nature of a substitute) to S. J. Res. 53, introduced March 16, 1967_

Text of S. Res. 94, introduced March 16, 1967..

Breakdown of $91 billion invested in Latin America__

17

Answers to questions submitted by Senator Gore..

26

Remarks of Senator Mansfield on the Alliance for Progress from the
Congressional Record, March 13, 1967-

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30

Remarks of Senator Morse on the Latin American Summit Meeting,
from the Congressional Record, March 13, 1967

31

Remarks of Senator Morse when submitting an amendment to S.J. Res.
53, from the Congressional Record, March 16, 1967---
Text of P.L. 86-735, Latin American Development Act, Sept. 8, 1960-
Breakdown of total Latin American gross investment into govern-
ment and private enterprise expenditure and estimated foreign
private investment___

Statement on portion of U.S. programs in Latin America directed
ultimately to private enterprise development_

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Article entitled "U.S. Is Optimistic on Latin Summit," from the New
York Times, March 17, 1967__

Article entitled "Javits Warns on Support," from the New York
Times, March 17, 1967---

Press release by the Special Committee of Presidential Representa-
tives....

Statement entitled "Uphill Struggle," from Forbes magazine, March
15, 1967.

Statement on capital flight..

Figures on trade among Latin American countries
Statement on inflation in several Latin American countries-
Proposed fund availabilities to Latin America in fiscal year 1968 and
fiscal year 1968 proposed program

Chart showing U.S. economic assistance to Latin America..

Resolution approved at Buenos Aires regarding the meeting of the
American chiefs of state___

Guidelines for the preparation of the agenda of the meeting of the
chiefs of state___

Statement on U.S. economic assistance to Latin America and the U.S.
balance of payments..

IDB infrastructure projects generated by the preinvestment fund for
Latin American integration_-

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77

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54

59

68

Chart showing population growth rates of Latin American countries
prepared by the Legislative Reference Service....

111

Exberpt from Alliance for Progress weekly newsletters, March 20, 1967
on President's $1.5 billion request...

115

Article entitled "The Alliance That Lost Its Way," by Eduardo Frei
Montalva, from Foreign Affairs, April, 1967.

118

Insertions for the record-Continued

Prepared statement of Hon. Jacob K. Javits, U.S. Senator from New
York...

Page

149

Prepared statement of N. R. Danielian, president, International
Economic Policy Association, Washington, D.C.-

Letter and material submitted by the Chamber of Commerce of the
United States...

Index to examination of witnesses.

151

Statement by the League of Women Voters of the United States.

158

158

163

LATIN AMERICAN SUMMIT CONFERENCE

FRIDAY, MARCH 17, 1967

UNITED STATES SENATE, COMMITTEE ON FOREIGN RELATIONS, Washington, D.C.

The committee met, pursuant to notice, at 10 a.m., in room 4221, New Senate Office Building, Senator J. W. Fulbright (chairman) presiding.

Present: Senators Fulbright, Sparkman, Mansfield, Morse, Lausche, Symington, Pell, Hickenlooper, Aiken, Carlson, Williams, and Mundt.

The CHAIRMAN. The committee will come to order.

The Committee on Foreign Relations is meeting this morning to hear the Secretary of State, the Honorable Dean Rusk, with respect to Senate Joint Resolution 53, to support the other American Republics in a historic new phase of the Alliance for Progress. This resolution was requested by the President in his Message of March 13.

I hope the Secretary will also comment, if he will, on Senate Resolution 94, which I introduced yesterday, to support certain objectives of United States policy with respect to Latin America, as an alternative to Senate Joint Resolution 53.

Without objection, the Message of the President and the texts of three resolutions will be inserted in the record at this point. (The documents referred to follow :)

[H. Doc. 84, 90th Cong., first sess.]

LATIN AMERICAN SUMMIT CONFERENCE

To the Congress of the United States:

In less than a month, the leaders of the American states will meet in Punta del Este in Uruguay.

It will be the first such meeting in a decade, and the second ever held, of the heads of the free nations of our hemispheric system.

This meeting represents another link in the bond of partnership which joins us with more than 230 million neighbors to the south.

The gathering is far more than a symbol of fluorishing friendship. Its purpose is a review of the progress we have made together in a great adventure which unites the destinies of all of us. Beyond that it will include a common commitment to the historic and humane next steps we plan to take together. I look to this meeting with enthusiasm. The peaceful and progressive revolution which is transforming Latin America is one of the great inspirational movements of our time. Our participation in that revolution is a worthy enterprise blending our deepest national traditions with our most responsible concepts of hemispheric solidarity.

THE MEASURE OF PROGRESS

The cooperative spirit between the rest of the Americas and the United States has been building for decades.

The establishment of the Inter-American Development Bank in 1959, and the Act of Bogotá in 1960, under the leadership of President Eisenhower, helped turn that spirit to substance. In those historic compacts the American governments pledged their joint efforts to the development of programs to improve the lives of all the people of Latin America. They provided the impetus for an action taken in 1961 on which the history of the hemisphere has since turned. That action—the Alliance for Progress, which moved dramatically forward under President Kennedy-fused old dreams and fired new hopes. With its commitment of mutual assistance and self-help programs, it attacked evils as old as the condition of man-hunger, ignorance, and disease.

That Alliance is now 6 years old.

What can we say of it?

We can say that there is a clear record of progress. Per capita growth rates for Latin America show that more countries have broken the economic stagnation of earlier years. Reform and modernization are advancing as a new wave of managers and technicians apply their skills. There have been steady gains in private, national and foreign investments. Inflation is easing. The struggle for social justice is proceeding.

These are all true. But the statements of progress are more meaningful, and they more realistically reflect the spirit of the Alliance, when they relate to the people for whose lives the Alliance itself was created. Since the Alliance began, and with the funds that we have contributed—

Men, women, and children are alive today who would otherwise have died. -100 million people are being protected from malaria. In 10 countries, deaths caused by malaria dropped from 10,810 to 2,280 in three years' time. Smallpox cases declined almost as sharply.

-1,200 health centers, including hospitals and mobile medical units, are in operation or soon will be.

For tens of thousands of families, the most fundamental conditions of life are improving.

-350,000 housing units have been, or are now being, built.

-2.000 rural wells and 1,170 portable water supply systems have been built to benefit some 20 million persons.

Children are going to school now who would not have gone before.

-Primary school enrollments have increased 23 percent; secondary school enrollments by 50 percent; university enrollments by 39 percent.

-28,000 classrooms have been built.

-160,000 teachers have been trained or given additional training.

-More than 14 million textbooks have been distributed.

-13 million schoolchildren and 3 million preschoolers participate in school lunch programs.

Men whose fathers for generations have worked land owned by others now work it as their own.

-16 countries have legislation dealing directly with land reform.

-With U.S. assistance, 1.1 million acres have been irrigated and 106,000 acres reclaimed.

-More than 700,000 agricultural loans have benefited 3.5 million people. -15,000 miles of road have been built or improved, many of them farm-tomarket access roads.

All of these are heartening facts. But they are only the beginning of the story, and only part of it. Statistics can only suggest the deep human meaning of hope alive now where once none lived. Statistics cannot report the wonder of a child born into a world which will give him a chance to break through the tyranny of indifference which doomed generations before him to lives of bleakness and want and misery.

Nor can they reveal the revolution which has come about in the minds of tens of millions of people when they saw that their own efforts, combined with those of their governments and their friends abroad, could change their lives for the better.

Perhaps most important of all, statistics cannot adequately reflect the emergence of a vigorous, competent and confident new generation of Latin American leaders. These men are determined to see realized in their own time a strong,

modern Latin America, loyal to its own traditions and history. They are men who know that rhetoric and resolutions are no substitute for sustained hard work. And statistics can never tell us what might have been. They cannot record the shots which might have rung out in the avenidas and plazas of a dozen Latin American cities, but did not-or the howls of angry crowds which might have formed, but did not. The full success of the Alliance for Progress must be sought not only in what has been accomplished but in what has been avoided as well. Ferment gripped the hemisphere when the Alliance was born. In places throughout the world, terror with its bloodshed sought to redress ancient evils. And in some of these places-in Cuba and half a world away in Southeast Asiaeven greater evil followed the thrust of violence. Through their own efforts under the Alliance for Progress, the Latin Americans have transformed the hemisphere into a region of determination and hope.

The United States' participation in the Alliance was a bold affirmation of its belief that the true revolution which betters men's lives can be effected peacefully. The Alliance's 6-year record of accomplishments is history's clear testament to the validity of that belief.

It is also a testament to the validity of the underlying principle of self-help. Our support has been vitally important to the successes so far achieved. But the commitments and dedication of the Latin American nations themselves to these tasks has been the keystone of that success.

THE TASK BEFORE US

The record of progress only illuminates the work which still must be done if life for the people of this hemisphere is truly to improve-not just for today, but for the changing years ahead.

Last August, in a statement on the fifth anniversary of the Alliance for Progress, I described the challenge in these terms:

"If present trends continue, the population of this hemisphere will be almost 1 billion by the year 2000. Two-thirds-some 625 million-will live in Latin America. Whatever may be done through programs to reduce the rate of population growth, Latin America faces a vast challenge.

"Farm production, for instance, should increase by 6 percent every year, and that will be double the present rate.

"At least 140 million new jobs will need to be created.

"Over a million new homes should be built each year.

"More than 175,000 new doctors need to be trained to meet the very minimum requirements.

"Hundreds of thousands of new classroms should be constructed.

"And annual per capita growth rates should increase to the range of 4 to 6 percent.

"These requirements, added to the demands of the present, mean that new sights must be set. that new directions and renewed drive must be found if we are to meet the challenge, if we are to move forward."

It is with these sober problems confronting us that the leaders of the American states will meet at Punta del Este.

PILLARS OF PROGRESS

Our governments have been hard at work for months preparing for this meeting. Our concern has centered on the question of how we can speed the development process in Latin America. We know that growth and trade are interacting forces. We know that they depend on the free movement of products, people and capital. We know they depend on people who are healthy and educated. We know that these conditions contain the seeds of prosperity for all of us.

Further, based on our joint experience so far under the Alliance, we know that the future progress of the hemisphere must rest on four strong pillars: 1. Elimination of barriers to trade

Civilization in most of Latin America followed along the coastal rim of the continent. Today the centers of population are concentrated here. Vast inner frontiers lie remote and untouched, separated from each other by great rivers, mountains, forests and deserts. Simon Bolivar saw these natural barriers as major obstacles to trade and communication and to his dream of a single great Latin American republic.

Because of them, Latin American countries for a century and a half tended to look outward for their markets to Europe and the United States.

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