Office of the Historian

193. Memorandum of Conversation1

US/MC/2
Punta del Este, April 11, 1967, 4:30 p.m.

UNITED STATES DELEGATION TO THE THIRD PERIOD OF SESSIONS OF THE ELEVENTH MEETING OF CONSULTATION OF MINISTERS OF FOREIGN AFFAIRS

SUBJECT

  • Meeting of the Secretary and President Balaguer

PARTICIPANTS

  • U.S.
    • Secretary Rusk
    • Mr. Van Reigersberg (interpreter)
  • Dominican Republic
    • President Balaguer

Dr. Balaguer replied to a question from the Secretary saying that his country was gradually recovering from its civil war and was strengthening its democratic institutions; the people have learned their lesson from history. Unfortunately, however, they now insist more on their rights than on their obligations. He expressed some concern about the effect of continuous Haitian migration to his country, which adversely affects the Dominican economy and brings in some people with extreme leftist ideas.

The Secretary asked Dr. Balaguer to define the number one problem in the Dominican Republic. Dr. Balaguer replied that it was unemployment. Even though the present Emergency Plan of forty million dollars and government-generated public works projects were helping relieve the unemployment situation, it was still serious. A possible solution, of course, would be an agrarian reform on a broad scale, since 70 percent of Dominicans are farmers. He stated that a plan is being worked out to re-settle some 20,000 families per year over a five-year period. This program will cost some ten million dollars.

The Secretary asked whether there were land holdings that could be divided up. Dr. Balaguer replied that many of the old Trujillo latifundia are in fact being sub-divided and permanent title is being given to the new owners.

On the sugar question, the Secretary pointed out the statutory difficulties involved in changing U.S. quotas, as well as the possible disadvantage of setting a fixed quota and then experiencing a shortage [Page 454] requiring even larger amounts of imported sugar. The Secretary also mentioned the repercussions of a new Cuban sugar quota if peace is ever reached with that country. He indicated that certain countries such as Morocco had barter arrangements with sugar-producing countries and that it might be possible for the Dominican Republic to enter into such an arrangement.

Dr. Balaguer stated that he was aware of these factors. Japan has recently offered to enter into such a barter arrangement but this offer was not fully satisfactory in that Japan was willing to compute the value of Dominican sugar only at current world prices, which the Dominican Republic thinks are unrealistic.

  1. Source: National Archives and Records Administration, RG 59, Central Files 1967–69, POL DOM REP. Confidential. Drafted by Van Reigersberg and approved in S on April 12. A note on the memorandum indicates it was revised on June 1.↩