666 Foreign Relations, 1958-1960, Volume IX



250. Memorandum of Conversation


                             Washington, March 15, 1960, 10:30 a.m.

SUBJECT
    Aid to Underdeveloped Countries

    [Here follows the same list of participants as Document 249.]
    The President indicated that another subject which he had dis-
cussed on his visit to Bonn' was assistance to underdeveloped coun-
tries. Frankly, he felt that unless the Western nations, namely Germany,
the United States, United Kingdom, France and the Netherlands, ex-
erted themselves in this respect, the West might lose the struggle with
communism. The Communists can do much more than we can do, both
from the standpoint of propaganda and politics, because theirs is a dic-
tatorship. Therefore the West will be in a very bad situation unless it de-
velops a very strong program.
    The Chancellor then pointed out that, while Khrushchev talks a lot,
it is the United States which does a lot. He pointed to the US 1960
budget, which contains more funds for underdeveloped countries for
one year than Khrushchev has even promised over many years. The
trouble is, however, that the world does not know enough about what
the United States is doing. The United States must therefore publicize in
a loud and strong voice what it is doing, and the rest of the Free World
must do the same. The Chancellor then emphasized also that as regards
the economic area as a whole, but especially aid to underdeveloped
countries, more effective coordination of effort must be worked out.
Above all, however, economic assistance must be politically guided and
directed and have a political and not only a humanitarian aim.
    The President agreed that the underlying reason must of course be
political. He noted the bad situation in which the West finds itself in
view of the fact that we are on the defensive in the war against commu-
nism, while communism is on the offensive and has the advantage of
being a dictatorship. Therefore, the Communists can pick the spot at
which they want to create trouble. It is like sneaking one rotten apple
into a bushel of good apples, thereby trying to ruin the whole. This is the
case with reference to Guinea and Guatemala, for instance. By the same


    Source: Department of State, Conference Files: Lot 64 D 559, CF 1610.
Secret; Limit
Distribution. Drafted by Lejins and approved by the White House on May 31.
The conver-
sation took place at the White House. See also Documents 249 and 251-252.
    1 For documentation on President Eisenhower's visit to Bonn August 26-27,
1959,
see Documents 5 ff.