51. Memorandum From the Director of the Office of Inter-American Regional Economic Affairs (Turnage) to the Assistant Secretary of State for Inter-American Affairs (Martin)1
SUBJECT
- Certain Concrete Achievements During First Year of Alliance for Progress
1. Improved Tax Administration
Tax collections in 1961 in Bolivia were 17% greater than in the previous year; in Venezuela tax revenues in 1961 were about 15% greater than in the previous year and tax declarations increased 22%. In Chile, as of mid 1962, 100 officials had completed training courses in the newly established school for tax administrators. In 1962 in Chile the first tax fraud indictment was made. Panama estimates that tax collections in 1962, by doubling its auditing staff, will be increased by $5 million (mainly from income taxes). In Paraguay customs and sales levies increased about 50% during the first 5 months of 1962 as compared with the same period of the previous year.
2. Expanded Education Programs
In Chile 14% of the national budget in 1961 was allocated to education as compared with 9% in 1959 ($129 million compared with $69 million). In Ecuador 17% of the national budget in 1962 was allocated to education as compared with about 10% in previous years. In Peru 21% of the national budget in 1962 was allocated to education as compared to about 17% in previous years. In Mexico education accounted for 21% of the national budget in 1962 as compared with 16% in 1959. During 1961 in Mexico, 8,000 new rural schools were opened. In Guatemala, as of June 1962 in a joint program with AID, 971 class rooms had been completed and 467 were under construction. The National Literacy Campaign in Venezuela resulted during a 3 year period in 675,000 persons under age 10 learning to read and write.
3. Agrarian Reform
In a substantial acceleration of the land reform program begun some years ago 71,000 land titles were issued to farmers during the period August 1960 through December 1961. In Venezuela since 1960 some 2 [Page 117] million hectares of land have been distributed among 55,000 families. In Mexico, between September 1960 (Act of Bogota) and July 1962, almost 7 million hectares of land had been turned over to approximately 60,000 families in a continuation of the land reform program started several decades ago. In Salvador a decree was issued by the government requiring a day of rest with pay each week for farm workers.
4. Development Planning
All countries have taken appreciable steps toward the preparation of national development plans. Chile and Colombia have completed plans which have already been evaluated by the Panel of Nine. The Panel is now considering plans submitted by Mexico and Venezuela.
5. Other
The Social Progress Trust Fund has extended loans of more than $100 million in 10 countries in support of expanded low cost housing programs. The Trust Fund has also extended more than $100 million in loans in 11 countries in support of improved water supply and sanitation systems.
- Source: Department of State, Central Files, 811.0020/11-2962. No classification marking. A copy was sent to May.↩