-DATE-
19590505
-YEAR-
1959
-DOCUMENT_TYPE-
SPEECH
-AUTHOR-
F. CASTRO
-HEADLINE-
FROM BUENOS AIRES
-PLACE-
BUENOS AIRES
-SOURCE-
INCOMING TELEGRAM
-REPORT_NBR-
FBIS
-REPORT_DATE-
19590505
-TEXT-
Control: 2614
Rec'd:   May 5, 1959
FROM:  Buenos Aires                                       9:17 p.m.

TO:    Secretary of State

NO:    1658, May 5, 3 p.m.

NIACT

FROM MANN AND RUBOTTOM

PASS TREASURY

Re DEFIEL 1385

Spanish text Castro speech air pouched to Department English text not yet
available.  He spoke for 80 minutes with virtually no reference to notes
although Minister of Economy Boti occasionally handed him reminders.

Following is gist his remarks:

We represent and speak for people who have lost faith in international
conferences and who are poorly represented at them.  People all over have
same aspirations and problems and leaders must find solutions.  Old ideas
are not productive.  Attitude toward problems as important as concrete
proposals for solutions.  Must find curative measures for problems, not
just anesthesia.  Political instability rather than being caused by
economic underdevelopment is consequence of economic underdevelopment.

True that military dictatorship on wane but nobody knows how long
constitutional government can last in several countries.  Too much lip
service to democracy by leaders have caused people lose faith.  If leftist
dictatorships (never used word Communist) cause for preoccupation, we
should be equally concerned over rightist dictatorships.  People do not
want freedom without bread but neither do they want break without freedom.

Investment insists on having political stability and orders, even when
order is imposed (not once did he use word law in speech).

If military minority wants to take over certain governments, what can
people do!

May be true US has no fear but Latin America has fears.  US with its great
economic strength and political stability is some times blind to our
problems.  Our problems beyond our capacity to solve (continually spoke for
all of Latin America).  No reason to hide facts from US.  US people
understood our exposition of problems and government should respond of
desires of people

Our people consume one-sixth that consumed in US.

Nothing more corrupt than dictatorship.  Constitutional government can also
be corrupt but there selections eventually resolve this problem.  In
strengthening economies should avoid helping dictatorships.

Called for industrial development; supported strengthening internal Latin
American markets and common market for Latin America; urged agrarian
reform; said was possible overcome misery through moral honorable
approaches.

Capital provided by three sources:  (1) selling goods, (2) public sources,
(3) private sources.  United States can buy all sugar it needs from Cuba
though would require structural change in US system which now responds to
its own pressure groups.  Change may require long time.

Private capital under past systems is not solution to problem of Latin
America.  Private capital inquires about climate.  Does this mean that Cuba
should toll rate 600,000 unemployed?  That there should be no strikes or
that people should give up aspirations?  Insinuated conflicts of interest
when US-owned company abroad has strikes.  Stressed need for Latin America
produce its own managerial class.  Industrial development on national basis
does not exclude role for foreign private capital.

Turning to public financing commented had read US speech which listed US
deeds but these were not enough.  Does not doubt US good faith.  Commented
that US had put up only half funds for Inter-American Bank.  With respect
to sacrifice US people, they can afford it.  They have sacrificed before,
for Europe and other regions, but not for Latin America.  Why cannot Latin
America have same help US has given to others?  All we want is to borrow
and repay with interest.  US should sacrifice to help Latin America in
interest its own future generations.  Commerce with a developed Latin
America would be far greater than with weak countries.  If Latin America
consumption catches up with US, then hemisphere will be strengthened. Said
that Latin Americans now employed in US would like to return to their
countries if economic conditions permitted.  Would be willing work for
less.

In talks with people in US, he learned that US would support greater
assistance to Latin America.  The government "will be persuaded" to do more
by US public opinion.  Said three Senators had stated US prepared help as
much as required by Latin America.  What we need is three billion dollars
per year for ten years and problems will be solved.

Comments and explanation of delegation's decision not reply follows.

BEAULAC

MAW:HC/6

Note:  Mr. O'Connor (ARA) notified 10:30 p.m. 5/5/59 CWO-JSW
-END-