STATEMENT BY PROMINENT DEMOCRAT ON EXPROPRIATION IN CENTRAL AMERICA (W/ATTACHME

Created: 2/1/1954

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J-OR:

OFNTELLIGENCE

by Prominent Pemocrat on Expropriation in Central America

1* Tou trill recall that in the recent discussion with an American Ambassadorentral American country, it was thought O JaTW*.. esirable torominent Democratublictouching on the threatened expropriation of certain Americanin that country. It was hoped thattatement might persuade the head of tho government of that country thot our Ambassador's position is not simply the expression of theParty and the Republican Administration (which the head of the government apparently believes will not obtain after the nextut isipartisan view and not likely to beby election results.

Acting upon your requost to proceed in thisroposed statement was drafted by us and redrafted by State, which is attached hereto. Please note the Guatemala "angle".

rominent Democratic Senator has agreed to deliver the proposed statement on the floor of the Senate quite soon. Colonel J. C. King has been asked to monitor the Congressional Record for the statement and, when it is made, to see that It gets the news circulation desired, as well as informing our Ambassadors

to both Central American countrlos concerned, so that they can make independent use of it.

Leyuty Director (Plans)

Ii. While this undertaking miflht have been more properly handled by State, we have done itavor to the Ambassador, with the concurrence of State as to tho idea fortatement and its content.

Attachment

SECRET

y/o

the under secretary

r*'.

The report of the Randall Oooaission Gas underlined very sharply the prominent part which muat be ola/ed by American foreign Investments in extending to other less developed countries the capital outlays, modern machinery and technical skills that are indispensable for their economic betterment. This goal is truly bipartisan, on which both major parties are in substantial agreement, as ia clearly demonstrated by tbe fact that various of the programs aad measures to stimulate foreign investments set up under the administration of President Truman have been actively aided and pushed under the administration of President Eisenhower.

In this hemisphere, ABerlcao investors have wide significant contributions to ths economies of other countries. With courage and foresight they have spurred the development of mineral resources, petroleum deponlte. agricultural enterprises, air and nurfacenetworks and centers of commercial trading and financial exchange. Ve believe, on both sides of the aisle, that theseaava been beneficial not only to the Acerlcao Investors but to an equal if not larger degree to the peoples of thp countries to the south. But we must recognize that they have had to copo with special problems, ranging from minor discriminations to outright confiscation. If the program so well sponsored to date is to succeed in bringing its solid beneflte to other countries, lt must enjoy the firm and decisive

support

support of all branches of our Government and all shades of political opinion.

Let there be no doubt that lt has ouch support. Ve have observed recently the betterment of relations with Argentina, which nukes possible the renewed interest of American capital in that country, on the proper basis of respect for its laws and the proud historyrogressive people. At the same time, wc must observe with real concern the harassment and outright attack on American investments by the Coonunist-influeaeed Government of Guatemala, which has so unwiselyrogram of social reform to be dominated by the ojrents of Moscow, whose primary objoctive is always the elimination of friendly American private enterprise. Of special interest to me has been the course followed by tho Government of Costa Bica and the United Fruit Company, the largest American enterprise in that country, in seeking aa orderly and agreeable solution for differences between them. ave observed that in th* preliminary letters exchanged between Don Jose Figueres, President of Costa Bica, and the United Fruit Company, both sides have emphasized respect for the sanctity of existing contracts, to which amendments can properly be made only by mutualhile at the name time each recognizes the rights and responsibilities of the other ln making such amendnents as will eliminate any Inequities and misunderstandings between them. This shouldodel course for solution of difficulties,ay say

4JU--

that it should be regarded as the American way of doing things, which

A

If

It the way based on our traditional respect for Law and agrees the very basis of relations between Individuals and nations, while at the same time keeping before our Binds the wisdom of mutualto changing needs and conditions. It is the opposite to thu method of threat and intimidation which is the characteristic note of totalitarian systess. so unhappily imitated by the Government of Guatemla in Its dealings with American business.

United States"

Noakingontention except Hi' proponents of thewho contend that lt isuii the amendmentitontention which they themaelvca tura made.

The Senator from Maryland also staled that, Ii the amendment were

In mom Infirm,baroperty by iihm wiiaic Uw uniu-1

SUUm. II mUtbt ba iiiwiin loUrtnM. It Would baoaot of UM

ture lo aultvnilx inch owneiahlp.

Thf very out day. thehio declared

COagreaaower one iV'rights and prtTUecsaof allena In Um UnlSfd buui

Mr.he propDoenU otamendment plan greatthe ease of XIlMburl againstThat case tM decMed taUie Senator 'toco Maryland lot ndlast Wednesday what he describedand/somewhatll tbe jeanireof Amerlcaniagainstthrough the most turbulentour history, and untilol themt

Senator' from Ohio. Indeed, said on Thursday that I* agrees with theuit of tbedeeislon In Hawopfl against SmTTS Holland. Hot he disagrees wtth the v.ninc by which It was reached. It should'have been toned, he said, ne* ou the treaty Involvedn the commerce

ciauM^or^ComUtuticiL'

* oftbejwety

-There are some,iiotor.from Ohloist ^ai^tteW js no such, thine ascpuuneico anyhat allIi. Interstate eoinmere^. If that view ,'e*tt prevails,h amendment and States rights will be as ciunct.as a o not bear anyone advocat-

affairs.

Mr. Pr reference to .Ihluk there l

.Vo.it

'mltaUonoo the power of Congress

-

So horrendous are the fearsy the proponents of the Under mendmentometimes get tho (eeluig of being with Alice in Wonder-Indeed. Mr. President, the other Alice In Wonderland again cot the feeling of being ln the United

The proponents of thecnt remind me of the queen In thepassage:

ant believeaid Alice.

"Can'tbe queen aaldity log tone. "Try again:ong breath, and abut your eyaa."

Alice laughed. "There's no use sbe aald: 'one can's bMUre

arcnlyivtnl hull much practice.-aald tbe queen. is yourlw*rt did It tor half anay. Why laws I've believed as many as als un-poulblc things before MenafaM."

Mr.

. of tor Inaccurate! state-by proponents of the and that they are tbe motives and of thesked If the tune had not come for us "to look more rlowly at those who demand that we take the Constitution apart anduado they really want?". j..'.

I tot roy answer eooacr than tThat very afternoon the Seiuktor Iram NeTAda lUr. UcCmuuhI made Itlear that he is not asabout the. Constitution as be Is.wor-

itc:

mm*

1 certainly cou >ns if -II -the Senatorortunately we I

and'

Con-

RECORDSENi.

t

Docs this sound like the UnitedCharletiabolical Instrument to turn America over lo foreigners, as many supporters of UK Brlckernl elarasT

Mr. President, when Secretary of State SleUJnlui appeared before the Senate Foreign Relations Committee to support tbe United Nations Charter, he takd:

IW ur*uUa>Uoael tuiaMM

supergovern-

nterrro* la ataUsn vhlch an autu-uaiif within tba OoeaaaUe JoholMHa of any'Stata (Baaar. T. o. N. Charter)

Does this sound like meat?

Mr. President, tbe Senator from Nevada rihI Uie Senator from Ohio have made much of tba ease ot SetCalifornia. Tne Supreme Court or California lo Uiai case made It ni.n'-iv clear tbht It rejected an*at UMof. -ioperate* to overthrow domeale law. It approved specifically the language I

quoted earlier lo Ute elTeet thatcontinue to be controlled Inwith each nation's owneconomic luatltuUcau andcourt .

W* as*that lha charter prmUliina raUad aa ay lha plalotUT. vara do* Intended

lo luptnadetaeulallon.

Mr. president, what li happening tn concretion with oughaj Brlckcr amendment li that forcea who oppose the Dolled Nations, force* wbo want America to retire behind an ocean

people who caythe United fiistc- out of. and the II. rf. outthe Unitedre drawineto back tbe Ilrtcieri imrodmr nl.

Day by day It becomes el earer that we flthUrat forcea that ^aeek to turn tiwl the etoct Tbe efTrrt ot what tow

to dowouM tx-to-rnrrenderT-the Called Nations to the Itoastans by Bet-tins tbe Untied States tout trf-UiB U- N. Tbe aenlorhio said- at -lone bko aa May IdSLIbe Unitedseemsor hn earlyIs aufferlnEase which affects every bureaucracy, anlust Torr.It Is not the United Nations that lust* for power. Rather the Sonet Union ln lta lost for power seeks In tbe TJ. N. and elsewhere to woo Uie nalluns of the world away from tiie paths of

-ave bad enough of puDInc out -of areas where wo an face to face withm wlliirj! lb pit ouray of Ufa sxalnat the Soviet way of life lo the arena of tbe United Nations. We have not done so badly in dally U. N. debate. Ambassador Lodge ls si wglim It out with the Russians day after day tn Um United Nations. .Tune after time be retsnations to line up with the United Stales In opposition lo Coeunu-nisi proposals put before tbe U. H. Istmrove that would weaken our leadership lo the D. N. and in tbe world? une for US to duen-

Gate ourselves from the U. N. cold-wara glgauUc stage for the Communist tragedy to play before tbe world?

lodge said recently In New York:

Tharanot anything In tha Halted Ka-tSaos Charter that awilaa It necessaryd tha owmiutlon. *

-Tbe Bortete said.ear by Ute tall' li cannot destroy or control thend it does not dare to leave the II. N

1 do not think the American people will be behind an) plan that wouldor Indirectly wreck tbeN. That Is wnat some of the Brick er proponentsnot what tbe people want Inecent poll conducted by Mr. Kmo Roper Indicate* thatercent of the American people want to strengthen the U. H. Anotherercent believe wo should work alone with Uie United Nations pretty much aa ltnd another IT percent want to work toward creating an'

Uie present United Nations. In words, some T) percent of thethat Includes Uie treatatom wllh PresidentIn believing that the United State* must continue to work with otherthroueb eiutlnc taternational or-

lga

gaalraUons.

' President naenhOwce tn his state Of the Union memnrr had this to say about tbe United Nations:

-uo!<iudItHarriot* In

msuy place* wborahreatened.ba only real waits fnmm vliera we han

PROPAOANDA ATTACK BT UATEMALA .

Mr. PULBRioHT. Mr. PresldenL on last Prldny. accordins to the press, tbe Onvcrument of Ouatemala launched another vicious propaasnda attack upon Uie'United States and some ot Its elU-Btns. ApparenUy tbeGovernment of Ouatemala isropacanda bsckfrouod lor further confiscation ot private American

launch an all-out effort to destroy tbe effectiveness of Ute Inter-American com-scbcduXnl lor March 1.

Mr. President. It is very discouraeuu;

In spite of our efforts to be reasou-le and* patient nlUi our smaller neighbors to tbe south. Ouatemala should persist In lis antagonistic This ls especially rcsreliable In view of the report of the RandallAa everyonem deeplyreer trade among allndackground forave always favored moreabroad by prlratenow that auch invratmrnt can bebeneficial as lt haa proved to bo on so many occasions.

Mr. President, the report of theCommission baa underlined eery sharpiy the prominent part which must be played by American lorelcn invest-mcnls In encoding to other leascountries ihe capital ouUayif.machinery, and technical skills tout are Indispensable for their economiccot oil which I

aata clearlyby the fact that various of tbe prorrams and measure* to stimulate foreign invnaUnenu set up under tbe administration of President

In Ibis hemlipbere. American invest-on have made siaroaeaot cccitribuUons to the scooomlea ol other countries. With couraire and forealnht tbeyhe development of mineral re-

(jilcrprtsea. air and surfacenetworks, aud centers ofIradlnc and financiale beneve. on both sides Of the. alrJe,'. thatinvesUnenla nave be not only to theo an equal. If not larger, decree tof tho

terve with real concern the and outrttht attack on Americanby the Comm un 1st- lnfluenrhcoent of tJualemsia. which has bo unwiarlyrogram ofreform to be dominated by the agents or Moscow, whose primaryays the elimination at friendly an private enterprise. Of special Interest to me bas been the courseby the government of Costa RKa and tbe United mot CO, the largest Ame-xan enlerprise ln that country, ln seeking an orderly and agreeablelor diDcrences betweenavo observed that In Uw preliminary letters exchanged between Don Joso PUfueres. President Of Costa Itlca. and tbe United Fruitoth side* bave emphasised respect for the aancUty of csisunt cotUracts. to which amend mints can properly be made only by mutual agreement, while at tbe same time Sweat recognises the rights and lespoasi bill ties of the oUirt ln mitklDC such umendmenld'

mi

as will til mill it* any IneeroiUes and mls-understandlnss between thews. Tbu shouldodel course (or solution ofay say Uial it should be regarded as lhe all-American nr of doinc tliinas. which Is the way based on our traditional respect for law and agreement as the rery basis o( relations between individuals and nations, while at the same time keeping be(ore our minds Uie wisdom o( mutuallo changing needs andit Is the opposite lo the method of threat and Intimidation which is the characterUUc note of totalitarian ays-terns, so unhappily imitated by theof .Guatemala In lta dealings with American business, to say nothing of lis own private enterprise.

Mr.sk unanimousto have printed at this point ln.my remarks .an Associated Press dispatch from Ouatemala. datedUnited elates Denies Backing

Plot ln Guatemala."

There twine; no objection, the article

was ordered to be printedhe Rscou.

an follows:

Hurra* Sum Bantuun ot

*.' inn..

(icsicmau. January sterna ia*a

prxlocixy chargoU today that the Vailed

mates nitot by tour laun AaserteaB countries to lane* Ouamoala.

A itaieisndi from tha onee of Prniiinat Jneobo Arbenx Oysman aald aelrid docu-aweaan shawns, that ptaaea with napalm traaibs aad UJanUy with heavy arma were to be usaC.

n ni mil Hlrajagoa.heHepobUe. anc VencsueU a*

(war* llatedas Oen,

SMsttrktj

an aaUantwiuaiuiuiabar otarraala but retinter

T'r.rami thanoon alia Victor Manuel oiriaitrea. eecra-tary enteral otpro-CDcaaaualrt *

Oaixial Cool(ration Of, labor, accused th*

Amiwlead-oariind thiltna null Oo. ofa lutDad plot against tha Guatemala Cnvinninal.United fruit hoi eoeatantiy been under attack by Arbena' lefUtt regime. Tha ram-7'mi ilarga land areaabeenuroiighiir-'

Tba praaldentlal office aalo

lellar atated that tbe plana hate the aoqul-

of taw (namnist of tha aortal

tCalled faataa).

Ia Wsatilo'ton. a SUM Depart own t

called the clou-sea ridiculous and

untrue. Oa aald tba adjalnUtraUoa.ool

the mceaeai ofsnwsaawaaagfb.

augura: aoaiaaa. had made It pecfac'ly clear

that we would not intervene In any otbet naUool labraal affairs.

TbW la additional proor. If proofr-oad. or the Isagih to which tbe laut-

natlocol (Tominunlit eonapliaey will go lo

p bamtsphera aoltdarily on Uie era

of USe wdib

TH. ooofrrence wul meet In Caracat.arch i. .

sue ceiled proposals Five me no concern whatsoever, so long as the United States Senate continues to (uneUon. ItUIlbav* faith that al least one-third plus one. If notmerelyinimum otthe Members of the Senate have Bumeicnlresume, to prevent lhe ratification ot such pro-

swkwb

I cannot uwlerr-tand how anyone could haveow estimate orow opinion of the intelligence of the Senate aa lo be greatly concerned that any of the examples cited by tbe Senator fronr Illinois would be adopted as treaties That Is really Uie point that bo then, roe. Why should any person suddenly banoor opinion of th* ctlacrtminati ng inieligence of the Senate of the United Stales as to be concerned that the var-loun im-ipouli riledIhk. Uie United States would be adopted?

1 wonder if tbe Senator fromis concerned that the Senate, would be foolish enough to ratify Irea-Uea containing such proposals.

Mr. sTENNlii. Since comtuji totbe Senator from ML'ah&lpplconsider ably disillusioned bywith which verytreaties glide by thewithonsider too not wishthat subject.

I do not propose to discredit Use body loave the honor too not think there is any Question of not having fSJtb In any Individual Member of the Senate, Ids mtearlty. or bis insuestion of not any member of tbo branch of tbe Oovernxnenl, iram Uie President down, or lp Dotfaith in Uie merhbora of the Supremo Oourt of the United Susies, -VTxKanas JeSerson said:

Oo goaaeipna'afhan, let DO asoew be beard of eonOaaoea In man. but tan* aim down from nUaehlef by tha chains of UM COnatltutlon.

I believe Uiatery wise statement, applicable today In Ibis great Ume of change. When Supremece-dents are brushed aside and ignored, ax If ihey were scraps ofblnk lt is Umeeevaluationumber of our pnncipWr

Unlen thereheck oo the part of the senate, at scene Ume there miarht be an administration which wouldto enter Into mauy agreemeuts of the type relerred to by the Senator from ntinots.

I hope the Senator from Arkansas will remain In the Senateong ume. so that he may continue to bex1 guardian that heo not wish lo extend theppreciate the fact thatesired to have tbe Senatehall be glad to discuss the ma Iter later with the Senator, if be wishes to do so.

Mr. SCHOKPPEU Mr.

Mr. MrThe PIUKIUJINO OPFICER- Tho Senator from Minnesota bas the floor.

RECORDSENA.A

THYE Mr.ought to be recognised primarily toe Uieot eoimneoUruT on the remarks ot the distinguished Senator fromold the Senator from sippl In the highestnow ot bis sincerity and his great concern for Uie country. The onlyare ever knownreaty's going through the Senatereat deal of discus-amo to t

rules of the Senate, whichish lo accord myevery courtesy.

TheFFICER. The" Chair desires to advise the Sena lor fromhat the Chair erroneouslythe Senator from Mlmwwota. who was In the majority leader's seat, the chair presuming that theoint as

the majority leader. Nevertheless, theromntirely correct, and the Racoon should show It Tbe Chair should not have recognised tho Senator from. esire lo say lo

Both the Senator from Mississippinowenator canf the Committee on foreign

of seniority. We know that otherwise Senators take lesser assignments.

slon was when it came to the floornanimous report fromommittee on Foreign Relations.

Mr.ay say tor the Record that, ot course, toe Senator from Minnesota knows that

of Uie

rig that the Committee on Foreignhas witbln Its

some of the most able and distinguished of the Senate, when a

the majority leader. However, thefrom Kansas had thought that ho was on his feet before the Senator oc-cupylr-i: the majority loader's scat had risen and had beenid not want to interrupt It tbe Chair had previously recognized the Senator from. Minnesota as baring tbe right to the

from MinneaoUa |Mr.ccupying the majority leader's seat, asked for recoenllion, and tho Chair Informed the Senator that ba liad the floor..

Does the Senator from Kansasthat the Senator from Minnesota, acting as majority leader, bad the Door previous to the time the Sena loe from Mississw. IMr. Sri*asthe Chair f

Mr. in it- Mr. President,an be of assistance to the Senator fromadoint, and desired to ask Uie Senator froma question, and Uie Senator from Mississippi desired merely lo complete lilsas itandins on tbe floor, watting for Uie Senator fromto complete lils iiatcment before

but the fact that the Senator fromhimselfhangeprocedure andassmySCllOETPEL Mr^ President,comes lo the floor of IM ;ienalc ^ Crsalr and to trie distinguisheda unanimous agreement from the ch*lj"ad no objection toon Foreign Relations, many i;recognisingSenator as bsS

of the Senators will accept the action of OJJer-tood correctly, the Senator the committee, and will not .raise aas lo what ow body of the treaty.

Mr.ad desired to make some remarks on theealise the hour lshall defer them until tomorrow.

Qoor of the Senatereaty was approved under sucherely Oeslre lo say thatreaty was ratified In that maimer It was because there was no objection.

Mr. 8TKNNIRMr. President, will tne Senator yield at that point?

Mr. THYE. ield to the Senator

Mr. STKNNIS. Does the think thatood pnicllce?

Mr.ore .that the Senate now stand In. recess until tomorrow at'clock noon. -

The motion waa agreed to: and <nt

I

vrlth the dorire of theomf^fr* ra' ,bc^n

ave no

Tues-

. at 12 o'clock

Mr.'THYE."No, the Senator from Minnesota docs not think thatood practice, and we have amended Uieto make certainote win be.owever, "at the Ome such action tooS place, lC*wa* cn the 'basis.that.the Cpmrqltlce ori Foreign Rc-

day, February

lionsenator wis,:'dng.toecocpl tt.on'IrieTccojrQncndatloa JWoaenator frommajorliyoal-

. ^ff,wJsh"tdtonimeiii;.to.this' wtcntfio "on. .Hcrtrever. thejSenator from Kanr Ihut'-lhoVc- wbooBD wil' addressed the Chair, tbe Choir rec-knowc are not so carelesseglslnUve.body as.

reaty to be raU(lM--llhoi:tS-ats-" ,hc Chair that.'the

. -feimeil hiur th.iiil,

"The' onljj.jeasbn why)"

'inohtrealies Witho'-jV'-'balc_wtisecause-of theccanIhich'the Committee on Por-.cign Relations has. beer) held by inc. '

ItolapologlM.lt wherienSas asked for. recogei Uob If, JJCffl had already been granted|to Jh'e Senator from'i desire to keep the Rscoan straight regarding the

Jucrto Ninnxi 1/

'.lOron-l. of^ouUi CaroBna.h* represanmUte or tba tTnlled Slates of Alntrlca to the rUntn seosSoaof tOBcBoo-

mmlmljn lot Kurope ol (he

nccnlc and Eoctil Couodl of tbe Dnlud rtaUodaV

m-

oted today tohe senate gressive cam-

guatemala, guatemalaguatemalan con protest remarks by sen.alexander wiley whooreign relations cohhittee vms accused of wagint paign against guatemala's democratic regime." v,

ly heard ernment

1basting wiley

the protest was addressed.to. senate wiley declare that communist infiltration of. guaenace to1the hemisphere.

comhunist and PRO7COMMUNIST congressmen took turn

the"unTted"states."president eisenhower's adhinistratio>J, and business interests in guatemalaight session that lasted -v.

until the early hours of today.

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