218. Memorandum of conversation, December 16, between President Kennedy and President Betancourt and other U.S. and Venezuelan officials1
SUBJECT
- Conference Between President Kennedy and Venezuelan President Betancourt—Community Development
PARTICIPANTS
- The President
- Ambassador Chester Bowles
- Mr. C. Allan Stewart, Chargé d’Affaires ad interim
- Mr. Robert F. Woodward, Assistant Secretary of State for Inter-American Affairs
- Mr. Teodoro Moscoso, Assistant Administrator for Latin America of the Agency for International Development
- Mr. Richard Goodwin, Deputy Assistant Secretary of State for Latin American Affairs
- Mr. Harold Linder, President of Export-Import Bank of Washington
- Mr. Fernando van Reigersberg, LS staff interpreter
- President Romulo Betancourt of Venezuela
- Dr. Marcos Falcón Briceño, Foreign Minister of Venezuela
- Dr. Andres German Otero, Minister of Finance of Venezuela
- General Antonio Briceño Linares, Minister of Defense of Venezuela
- Dr. Jose Antonio Mayobre, Venezuelan Ambassador to the United States
- Dr. Alejandro Oropeza Castillo, Governor of the Federal District of Venezuela
- Dr. Manuel Perez Guerrero, Chief, Office of Coordination and Planning, Venezuelan Government
The meeting convened at 5:15 p.m. on December 16, 1961, at Los Nuñez, President Betancourt’s residence in Caracas, Venezuela. Several unrelated matters were discussed at this conference, including the subject covered in this memorandum.
[Facsimile Page 2]Community Development—Housing/Slum Clearance Project
President Betancourt asked Governor Oropeza to explain the national community and municipal program and urban low-cost housing improvement plan described in his memorandum No. 3.
Governor Oropeza spoke of the necessity of hastening urban housing, pointing out that the shacks (ranchos) ringing Caracas were eloquent testimony of the need. He said the Federal District needed this type of low-cost housing most, but that similar problems were faced in Maracaibo, Maracay, Cumaná and other larger cities. A total sum of $50,000,000 is needed in 1962.
Dr. Oropeza stated that certain funds for housing had already been obtained by Venezuela. However, the situation in Caracas was extremely critical and special funds that could not be obtained from traditional sources would be necessary in order to start work. Venezuela’s funds are one-hundredth of what is really needed. Therefore, a new approach in financing had become necessary.
President Betancourt asserted that 33 per cent of the population of Caracas lived in shacks forming a cordon around the city. On the other hand the Government had ambitious plans for an independent autonomous foundation to provide a massive community development program which would re-locate persons, provide light, sewers, self-help housing, and improve economic opportunities. He cited that of every 300 persons in Venezuela, only 30 had access to running water. He said this project needed special financing, not being within the realm of the Export-Import Bank, IDB or DLF.
Mr. Moscoso remarked that he was well acquainted with the problem and that a more careful study of requirements for Caracas low-cost urban housing had to be made. He suggested that a housing expert be brought from Puerto Rico to make the study. He said that plans have to be drawn up very carefully. Knowing that a problem exists is not enough. A solution can only be justified by the programs that are necessary to solve the existing problem. We might be able to work out a five year commitment for the United States to do certain things provided Venezuela did part of the work. Slum clearance is a very urgent matter. People who live in slums should be given the hope of improving their lot. Some slums have to be eliminated completely and some can be rehabilitated by building roads, water supply systems, and sewage facilities. The extremely bad social conditions which prevail in the Caracas slums give the Communists fertile ground for subver [Typeset Page 521] sion. If work could start soon in various parts of the city it would give people the necessary hope and incentives.
Mr. Goodwin emphasized that plans were extremely important in order to justify the projects.
President Kennedy stated that two problems have hindered progress in this field; insufficient planning on the Venezuelan side and excessive slowness on the American side. It would be important for Mr. Fowler Hamilton and Mr. Moscoso [Facsimile Page 3] to look into the matter at once. The United States can provide technical assistance in drawing up the necessary plans in order to justify the project. This technical assistance would include the training of Venezuelan experts who could take an active part in the actual implementation of the plans.
Dr. Perez Guerrero stated that if Venezuela were given the opportunity to start this type of work and if it received assistance during the next few months it would be able to get out of the present recession and use more of its own resources. Time is an essential factor. Long-term fund commitments are indispensable for sensible planning. All traditional sources of funds have been used for other projects and a new approach is necessary for this type of work.
President Kennedy stated that funds available for Latin America are probably insufficient. However, it will be difficult to get additional funds from Congress.
President Betancourt underlined the importance of slum clearance and housing.
- Community development-housing/slum clearance project. Limited Official Use. 3 pp. DOS, Presidential Memoranda of Conversation: Lot 66 D 149.↩