LATIN AMERICA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A001000040001-1
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: January 22, 2002
• Sequence Number: 1
• Publication Date: August 5, 1958
• Content Type: BRIEF

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NSC BRIEFING 5 August 1958
I. Major problem for US in Latin America is continuing political
instability.
A. Since early 1955 Presidents of Panama, Nicaragua and Guatemala
killed, and dictatorships of Honduras, Argentina, Haiti,
Colombia, and Venezuela overthrown.
B. Danger spots--possible coup attempts, civil violence or civil
war may erupt further in Cuba, Haiti, Venezuela, Panama,
Colombia, Paraguay.
C. Causes are rooted in illiteracy, poverty, traditional political
hatreds which make democratic procedures difficult.
1. Lower and middle classes, organized labor and student groups,
increasingly active in politics. Their leadership and
press often irresponsible.
2. Instability of economies based on one commodity exports
also a factor (Brazil--coffee, Chile--copper).
II. Communists isION& have made some gains in penetration of governments,
but not of military and are not dominant force in any country.
A. Their influence, however, out of proportion to numerical
strength, and anti-Communist legislation not generally enforced.
B. Party membership and influence increasing somewhat in some
countries.
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1. Venezuela: CP has doubled membership, gained respectability
and prestige since Perez Jimenez ousted and party legalized.
Participating in national political and labor groups, have
favorable press, some penetration of government.
2. Argentina: CP has doubled membership since 1955, is largest
in area, government climate favorable to continued growth.
3. Brazil: CP has Surfaced top leaders--although party still
illegal--attempting make deals with other parties for
October elections for congress.
4. Chile: Party legalized this week by President Ibanez
signature on new security bill. Communist-backed candidate
running second in field of 5 for 4 September presidential
elections.
5. Guatemala: Communists again active with return many exiles
and strengthening of underground organization and front
groups,
III. Local CP's gain from increased Sino-Soviet Bloc attention to the area.
A. Bloc seeks to undermine US position in Latin America, expand
trade diplomatic, cultural relations, increase bloc political-
ideological penetration.
1. Most recent gesture was inclusion of Latin America with other
undeveloped countries in Khrushchev-Mao 3 August communique.
B. Trade with bloc is small part of total Latin America trade, but
again on the increase,
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1. This year may equal, possibly surpass, 1955 high of $335
million.
2. Recent sizeable Soviet offers to Argentina, Brazil and
Uruguay for barter or sale of oil and oil equipment.
3. Some governments of Latin America more, receptive to Soviet
bloc trade offers in view export surplusses, foreign exchange
difficulties, and need for manufactured goods.
C. There has.been increase in Soviet bloc cultural, diplomatic and
propaganda efforts.
1, Some local pressures developing for renewing diplomatic
relations, particularly in Brazil and Chile. USSR dip.
missions in Mexico, Uruguay, Argentina; satellite dip,
missions in Mexico, Uruguay, Argentina, Brazil, Bolivia--
Czech consular office in Colombia. (In 1957 Czech legation
ousted from Peru and Ecuador.)
2. While small part of total propaganda effort, Sino-Soviet bloc
radio programs to Latin America increased considerably.
(USSR to Latin America 35 hrs. a week, satellites 52 hrs.
a week, Communist China 14 hrs. a week.) This spurred on
by 16 hrs. a week by Radio Cairo.
3. Chicom propaganda, cultural and trade efforts on increase,
IV. Bloc attempting to exploit certain basic conflicts in US-LA relations.
A. Latin American countries tend to blame US for economic ills and
underdevelopment.
1. Pretext of anti-Nixon demonstrations Peru and Venezuela partly
economic (mineral tariffs and oil import restrictions).
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2. Brazilian President Kubitschek has stressed US economic
attention to Latin America in his proposals for reappraisal
Inter-American relations.
3. Dr. EisenhowerTs visit to Central America and Panama rq'ded
a success but in part dependent on follow-up US aid to area.
4. General belief in Latin America that US neglects it in
relation other areas world.
Latin Americans generally do not understand US world
responsibilities.
B. Thus the principal Latin American objectives in relations with
US are economic,and somewhat unrealistic.
1. Latin Americans want guaranteed minimum prices for basic
export products or a fixed price ratio between their raw
materials exports and US manufactured imports.
2. They want long term government-to-government loans at low
interest, with minimal conditions and restrictions.
3. Another objective is removal of US tariffs and quantity
restrictions on Latin American exports and cessation of what
they claim is dumping of competitive US products in world
market.
4. Latin Americans want cheap or subsidized US technical aid
under their supervision.
C. Another basic problem is that statism in Latin America conflicts
with US emphasis on prtvate enterprise and development.
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D. There is also a general resentment in LA of alleged US support
of dictatorships.
V. Latin American governments support US position in UN and OAS on
major world problems.
A. Latin America generally sympathetic to US Position in Near East
crisis and troop landings in Lebanon.
B. But leftist and nationalistic opinion critical of US in world
affairs, which Communists also quick to exploit.
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