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University of Birmingham the Eisenhower Administration and U.S. Foreign and Economic Policy Towards Latin America from 1953 to 1

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University of Birmingham the Eisenhower Administration and U.S. Foreign and Economic Policy Towards Latin America from 1953 to 1 University of Birmingham The Eisenhower Administration and U.S. Foreign and Economic Policy towards Latin America from 1953 to 1961 By Yu-Cheng Teng A thesis submitted to The University of Birmingham For the degree of DOCTOR OF PHILOSOPHY Department of Political Science and International Studies School of Government and Society College of Social Science University of Birmingham Edgbaston Birmingham B15 2TT September 2018 University of Birmingham Research Archive e-theses repository This unpublished thesis/dissertation is copyright of the author and/or third parties. The intellectual property rights of the author or third parties in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or as modified by any successor legislation. Any use made of information contained in this thesis/dissertation must be in accordance with that legislation and must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the permission of the copyright holder. i ABSTRACT The thesis aims to examine Eisenhower’s foreign policy towards Latin America from 1953 to 1961. In order to win the Cold War, the leading bureaucrats were split over different approaches needed to achieve policy objectives in Latin America within the hierarchically regularized machinery- but it was not necessarily welcomed by every Latin American nation. There were three problems with Eisenhower’s staff structuring arrangement towards Latin America: (a) politicization of U.S.-Latin American relations from 1953 to 1961 by senior U.S. bureaucrats with an anti-communism agenda for Latin American development; (b) neglect of Latin American requests for public funds before 1959; (c) bureaucratic conflicts over different methods to achieve foreign policy objectives, often resulting in tensions between policy and operations. The bureaucratic approach limited U.S. understanding of Latin America, meaning (a) the National Security Council (NSC) advisory system could not meet stated ideals; (b) the American approach had limited applicability to Latin American societies; (c) tensions existed between U.S. ideals and political, economic and social realities in Latin American countries. By examining the Foreign Relations of the United States volumes and Latin American literature, this thesis moves beyond the existing scholarship of U.S.-Latin American relations and provides a new appraisal of Eisenhower’s approach towards Latin America in the Cold War context. ii ACKNOWLEDGEMENTS Writing a PhD thesis seemed to be one of the challenges in my life as if I were never about to reach the end. The greatest gratitude should be given to my leading supervisor, Professor Scott Lucas, who provided patience, guidance, encouragement and friendship during this long process. In particular, I would like to thank Dr. Shun Jie Ji, not only for his guidance as an MA supervisor, but also for his expertise as a futurist being able to offer different levels of analysis in international relations. I would also like to thank my internal and external examiners, Dr. Courtney J. Campbell and Dr. Trevor B. McCrisken. Both jointly recognized merit in the initial research; they offered the most constructive and sharpest criticism resulting in the final version of this thesis. Being a father and a husband without the completion of my PhD was the greatest challenge in my life. I am forever grateful for my wife, Chia-Pei Tu for her encouragement and support, emotionally and otherwise as a partner. I should express my deepest gratitude to my son, Tsung-An Teng, who offered so many joyful moments during the toughest time. I should have spent much time with you when you were born. Special thanks go to my parents who provided the best quality of child care for my lovely son whilst I was away from Taiwan. Ching-Shui Teng and Feng-Chiao Hsu always had faith in me and encouraged me in ways they might never fully know. Thanks to their generous support, I would not need to worry about financial issues during my stay in Britain. Finally, I would like to express my thanks to my proof reader, Helen Joinson, who helped me a lot at the final stage of my PhD. May this thesis reward Dr. Darcy Soong for his teaching career, from whom I received basic knowledge of international relations as a raw undergraduate student. Citizens Advice in Wolverhampton trained me to be a generalist adviser. In addition, Tricia Thomas encouraged me to do one last push when I almost wanted to give up my PhD degree. Terry Yu-Cheng Teng 10/09/2018 in Willenhall iii CONTENTS Page CHAPTER 1: Introduction: Eisenhower’s Cold War Strategy and Latin America 1 CHAPTER 2: Eisenhower’s Initial Conception of Policy: Economic Development and National Security in Synthesis 61 CHAPTER 3: The Soviet Economic Offensive: A Stimulus to Public Funds 120 CHAPTER 4: The Buenos Aires Conference: Widespread Discontent, Nixon in Latin America, Pan Americanism 184 CHAPTER 5: The Castro-Communist Threat: Agrarian Reform and Disillusion of Castro’s Leadership 246 CONCLUSION 308 BIBLIOGRAPHY 317 iv LIST OF ABBREVIATIONS AFL American Federation of Labor AFP American and Foreign Power Company AID Act for International Development AMF American Federation of Labor ARA Inter-American Affairs ASNE American Society of Newspaper Editors BOP Balance of Payments CCC Commodity Credit Corporation CIA Central Intelligence Agency CUTCH Central Unica de Trabajadores de Chile CTAL Confederación de Trabajadores de América Latina DOA Department of Agriculture DOC Department of Commerce DOD Department of Defense DOS Department of State DLF Development Loan Fund ECLA Economic Commission for Latin America Eximbank Export-Import Bank FDR Franklin D. Roosevelt FOA Foreign Operations Administration FRUS Foreign Relations of the United States GATT General Agreement on Tariffs and Trade IA-ECOSOC Inter-American Economic and Social Council IAPI Instituto Argentino para la Promotion del Intercambio IBRD International Bank for Reconstruction and Development ICA International Cooperation Administration IFC International Finance Cooperation IMF International Monetary Fund JCS Joint Chiefs of Staff MAAG Military Assistance Advisory Groups MDAP Mutual Defense Assistance Program MNR Revolutionary Nationalist Movement MSA Mutual Security Agency NAC National Advisory Council NATO North Atlantic Treaty Organization v NIE National Intelligence Estimate NSA National Security Act NSC National Security Council OAS Organization of American States OCB Operations Coordinating Board OIR Office of Intelligence Research OTC Organization for Trade Cooperation P.L. 480 Public Law 480 PLN Partido Liberacion Nacional PSB Psychological Strategy Board PVP Popular Vanguard Party RTAA Reciprocal Trade Agreements Act SEO Soviet Economic Offensive SOA Secretary of Agriculture TIAR Inter-American Treaty of Reciprocal Assistance UFCO United Fruit Company UPI United Press International USDT United States Department of the Treasury USIA United States Information Agency YPF Yacimientos Petrolíferos Fiscal YPFB Yacimientos Petrolíferos Fiscals Bolivianos vi CHAPTER ONE Introduction: Eisenhower’s Cold War Strategy and Latin America The purpose of this thesis is to examine Eisenhower’s foreign policy towards Latin America from 1953 to 1961. Eisenhower was the president who routinely utilized the National Security Council (NSC) more often than any other president during the post-war era. The most conspicuous efforts that Eisenhower made to the foreign policy organization were the clear division of Cabinet secretariat and White House staff. Apart from advising the President, the NSC integrates policy recommendations across related agencies or departments and coordinates general policies.1 The recent scholarship has revealed that Eisenhower was adept at “managing large, reconciling divergent factions, choosing subordinates…and making decisions on the most vital issues” based on his military experience. 2 Detailed evidence to support that Eisenhower was politically on the alert for policy planning has burgeoned. The latest scholarship on Eisenhower has focused on how implicitly he manipulated his power in the policy-making process but distinguished scholars scarcely assessed 1 R. Gordon Hoxie, “The National Security Council,” Presidential Studies Quarterly, Vol. 12, No. 1 (Winter, 1982), p. 109. 2 Chester J. Pach and Elmo Richardson, The Presidency of Dwight D. Eisenhower (Lawrence: University Press of Kansas, 1991), p. 29. - 1 - the policy outcomes towards American neighbouring states. Based on the extensive use of the Whiteman file, Eisenhower revisionists have found a symbiotic relationship between Eisenhower’s leadership and institutionalization of the NSC, clarifying that Eisenhower did not underuse his presidential power in the policy-making process throughout his presidency. 3 However, their inward-looking analysis completely played down the interactions between Cold War consequences and bureaucratic advocacy to influence the agenda. This thesis does not deviate from Eisenhower revisionism; however, this thesis does aim to demonstrate that even though Eisenhower was in effective control of the foreign policy mechanism, this did not present a welcome policy for Latinos. In doing so, this thesis explores the correlations between the NSC advisory machinery and foreign policy objectives in the Cold War setting. The “bureaucratic politics” approach is applied throughout the thesis in understanding the issues placed on the agenda.4 Eisenhower perceived that economic interdependence
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