Created: 3/8/1953

OCR scan of the original document, errors are possible

Wo now erpoct to beosition to proceed with our phase of the project If desired. However, the chances of succoss would be greatly enhanced if thereoordinated effort in the political field. The country in question is thoroughly dependent on its trade relations with us and has discounted tho fact that we would do nothing. In effect they have flaunted us and consistently got away with it. It Is time they wore brodght to roaliae that this could not continue.

While the exact steps which might be politically feasible are matters beyond our conpetenoe horo, weegitimate interest, it seems to me, in seeing that tho climate is right for the types of action in which wo may be engaged.

Here are some of the measures which night be considered.

our ambassador for consultation andtwo-fisted guy to the general arearip of inspectionreport to tho President.

Our ambassador la timid and never recovered from his treatment at the hands of Anna Panker. Further the whole Embassy should boook over. ust received the visit of two American citizens highly recommended who have large interests in the country. They indicated that they did not feel they could get anything whatever out of the Embassy in .the wr of protection of American interests and hinted at darker things. They came to me after talking with Herbert Hoovor and Lewis Strauss, and the latter urgedee them. Herman Pfleger knows about them through Herbert Hoover.

Bill Pawley or someone of his type might beecognise that Pawley is hard to control, but he is fearless and gets things done even though he mayittle crockery in doing it. ould suggest that he night alsoittle time in the countries bordering on the one of our chief concern.

In connection with tho mission described inhe Presidentress conferenco might express his concern at the Soviet Communist penetration and his desire to consult, in the spirit of the Rio Pact, with other Latin American countries affected thereby.

Appropriate speeches might be madeouple ofof Congress. Tou may recall that this wassar or

so ago andubstantial effect. Vico-President Nixon haa boon fully briefed by the two Americans who aaw mc and undoubtedly ho would cooperate.

Anything af footing coffee export at ions to. vould benockout blow. We night consider the possibility of having some legislation introduced authorizing,inding by the Pruaidentountry was taking Amnrlcan property without provision for due compensation, the imposition, within prescribed limits, of some countervailing duties on tho imports of suchwith the view toase for compensation. Tho more (threat of such legislation mightrofound effect.

Z don't know whether any of these measures are feasible,erely wish to raise the issue that the type of action we contemplate is likely to be Inadequate unless supplemented along some such lines.

Allen W. Dulles

Original document.

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