-DATE- 19590505 -YEAR- 1959 -DOCUMENT_TYPE- SPEECH -AUTHOR- F. CASTRO -HEADLINE- CASTRO CALLS FOR VAST PROGRAM OF ECONOMIC AID -PLACE- HAVANA -SOURCE- FOREIGN SERVICE DESPATCH -REPORT_NBR- FBIS -REPORT_DATE- 19590505 -TEXT- Castro Calls for Vast Program of Economic Aid to Latin America Enclosed are copies of the extemporaneous speech made by Cuban Premier Fidel Castro on May 2, 1959, at the Committee of 21 conference in Buenos Aires. Dr. Castro, speaking officially as chief of the Cuban delegation to the conference, called on the United States to supply Latin America with 30 billion dollars of economic aid over a period of ten years. He said that the people of Latin American have lost faith in international conferences because they see no real accomplishment emanating therefrom and because the actions taken at such conferences are but palliatives, not cures, for the economic ills of the area. Dr. Castro reviewed and interrelated the political and economic problems of Latin America and emphasized that political instability is the result, not the cause, of economic underdevelopment in the area. He referred to the recent trend toward elimination of dictatorial governments in Latin America as an "illusion" and warned that the existence of constitutional regimes in several countries will be only temporary if economic progress is not achieved. Approaching the essence of his message, Dr. Castro outlined three possible methods for achieving economic growth in Latin America: national savings, private capital investments and foreign assistance with public funds. He rejected the method of savings on the grounds that the restrictions in the United States prevent Latin American countries from exporting to that market in sufficient quantities to accumulate savings. He said that if the United States and Canada removed all restrictions on the importation of Latin American raw materials, and withdrew all subsidies being paid to domestic producers of competing raw materials, the Latin American countries could earn enough dollars to undertake their own development. (In this section, it is not clear if Dr. Castro was speaking for Cuba or for all of Latin America). He said that such a change would be most difficult for the United States to effect and that he no illusions about its possibilities. Dr. Castro said the second alternative, private capital investment, is no solution to the economic problems of Latin America, primarily because private capital will seek the best "climate" and will tend to bypass those countries where social conditions are most turbulent and where development is most needed. He recommended encouraging the investment of capital by national enterprises by making available to them credits which have been secured from international credit agencies. While preferring investment by national firms, he would not exclude international investors and would offer them THE equal rights and guarantees. Dr. Castro then concluded that the best method for inter-American economics cooperation lay in governmental financial aid (financiamento publico), which could be obtained only from the United States. He said that technicians of the Cuban delegation had calculated that 30 billion dollars were needed over a period of 10 years for the full economic development of Latin America. He realized that such a program would mean sacrifice for the American taxpayer, but noted that the latter had made financial sacrifices before to assist Europe and the Middle East. He also stated that this policy would be the easiest for the United States to implement, much easier than eliminating restrictions against the importation of Latin American products, and would redeem to the mutual benefit of the United States and Latin America. In closing, Dr. Castro said that he had found support for the proposed aid program in American public opinion and referred to recent statements by three United States senators which gave some support to his ideas in this regard. Comments: Dr. Castro's one hour and 25 minute speech was eloquently delivered and warmly received, with frequent applause which, at the end, lasted some 5 to 10 minutes. According to la Prensa, the head of the Brazilian delegation, Augusto Frederico Schmidt, was moved to applaud vigorously and to exclaim: "you are defending perfectly the spirit of operation Panamerica" when Dr. Castro stated that political instability in Latin America is caused by economic underdevelopment. By the same report the delegates of Nigaragua, Paraguay, Panama, and the Dominican Republic are said to have received the speech in complete silence. -END-