CABLE FROM LINCOLN REQUESTING ODACID CONSIDERATION OF CENTRAL AMERICAN SITUATIO

Created: 5/20/1954

OCR scan of the original document, errors are possible

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DIRECTOR LINCOLN WH)

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TAKING OVERALL LOOK AT CENTRAL AMERICAN SITUATION, BELIEVE VARIETY OF PRESENT AND FORESEEABLE FACTORS WARRANT ODAClO CONSIDERATION OF PROMPT ANO GENEROUS ODYOKE ECONOMIC AID PROGRAM TO ALL CENTRAL AMERICAN STATES, TO INCLUDE WSBURNT WHEN IT SHEDS COMMIES. FACTORS ARE:

DEVALUATION CRISIS, MAKING COUNTRYTO ODYOKE GUIDANCE

LABOR UNREST AND NEED TO STRENGTHENPRO-PBPRIME FORCES PRIOR OCTOBER ELECTION

CONFLICTS WITH PBPRIME BUSINESSTO KUFLUSH, LATENT OR PEAL AID TO COMMIES DEALT KITH BY OOACID)

OF RECOGNITION KUFLUSHODYOKE AND ADVISABILITY STRENGTHENING STORAX HAND AT HOME

RELUCTANCE TO AID ODYOKE

DIFFICULTIES WITH HTPLUME OVER CANAL AGREEMENT

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2. foregoing factors could be dealt with through earliest initiation economic aio conference (IN mexico with

REPRESENTATIVES OF OOYOKE ANOOUNTRIES. ODYOKE STIPULATIONS FOR aid WOULD be AGREEMENT ONOMMUNIST .POSITION, MODERATION OF CENTRAL AMERICAN RIVALRIES, EQUITABLE TREATMENT of PBPRIME COMMERCIAL INTERESTS.

J. MOVE WOULD HELP STILL CRITICISMS OF LACKD VOICED at CARACAS.

y APPEARING be THE MAJOR ODYOKE THRUST AGAINST WSBURNT, AND PROGRAM WOULD HELP CONCEAL PBSUCCESS COVERT ACTION.

BY ALIGNING SUPPORT FOR ANTI-CO:MUNlSM, MOVE WOULD PERMIT MORE RAPID, WHOLEHEARTED CENTRAL AMERICAN ENDORSEMENT OF fJOV WSBURNT GOVERNMENT WHEN PBSUCCESS SUCCESSFUL.

CONFERENCE TO LAUNCH AID OFFER COULD HAVE VACANT CHAIR SYMBOLICALLY RESERVED FOR WSBURNTS, WITH CLEAR OR IMPLIEDTISBURNTS WILL SHARE IN AIDCOWMI E. THIS MIGHT HAVE BENEFICENT EFFECT ON WSBURNT OPINIONAY.

IN CONTEXT IRON CURTAIN ARMS SHIPMENT TOFERENCE WOULO CONTRAST OOYOKE PEACEFUL AID WITH COMMIE MILITARISM.

8- LAUNCHING PROGRAM SOONEST COULD ALSO CUSHION POSSIBLE

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UNFAVORABLE CENTRAL AMERICAN REACTION TO AIO EXTENSION TO WSBURNT AFTER PBSUCCESS. IFCENTLY COMMIE COUNTRY ALONE GETS AID, OTHERS COULD TAKE UMBRAGE. BUT IF ANTI-COMMIES ARE OFFERED AIO FIRST, INCLUSION OF WS8URNT WHEN IT ANTI-COlTrfiE WILL BE EASIER.

9* EARLY CONVOCATIONUNE) OF EXPLORATORY CON" FERENCE COULD KEEP DISCUSSION SUFFICIENTLY GENERAL TOAVOID CONTROVERSY AND YET REAP BENEFITS OF ODYOKE GESTURE.

10, EVEN PBSUCCESS ATTAINMENT OF OBJECTIVES IN WSBURNT WILL PROBABLY NOT ELIMINATE NEED FORAGED PROGRAM FOR CENTRAL AMERICA.

RECO^ENO EXPLORATION OF FOREGOING WITH OXACID.

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