C. Bullitt and Teodoro Moscoso, U.S. Coordinator, Alliance for Progress, served as temporary U.S. Alternate Governors.

In his address to the Board of Governors, Secretary Dillon congratulated the Bank on the conduct of its affairs and noted the Bank's successful flotation of a $75 million bond issue in the U.S. capital market. As additional evidence of confidence in the Bank, the Secretary referred to U.S. support for a substantial enlargement of the Bank's resources. The U.S. Alternate Governor of the Bank, David E. Bell, paid tribute to the Bank's record in assisting Latin-American countries "to build developmental institutions and to introduce administrative and social reforms."

The Governors directed the Executive Directors to adopt, before September 30, 1963, procedures necessary for the establishment by the Bank of an intraregional program of export financing of capital goods, and requested the Executive Directors to study the financing of exports of primary products. As noted above, the Governors also approved the March Report of the Board of Executive Directors regarding increases in the Bank's resources and recommended that the necessary steps be taken to make the proposed increases in resources effective as soon as possible.

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ACCOMPLISHMENTS OF THE ALLIANCE FOR PROGRESS DURING THE PERIOD JULY 1, 1962-JUNE 30, 1963: Report of the National Advisory Council on International Monetary and Financial Problems, Submitted April 11, 1964 (Excerpt)**

The Alliance for Progress was proposed by President Kennedy in March 1961, and its Charter was signed by all members of the Organization of American States (OAS) except Cuba. Originally conceived as a 10-year joint effort of the Latin American countries and the United States to achieve economic and social progress in Latin America, a great deal of groundwork has been laid in the period during which the Program has been in effect. The Program placed greatemphasis on self-help by assisted countries. While progress in Latin America in this regard has not been uniform, many countries have begun to take the necessary measures which are essential to the success of the Program.

There has also been concrete evidence of progress. Although the rate of economic growth in Latin America is still below the long-term objectives of the Alliance, new housing units have been constructed, slum-clearance projects have been started, new classrooms and new water supply systems have been built, and land reform and tax reform are underway in many countries. In Central America, five nations have joined in a common market 45 which has cut tariffs on 70 percent "H. Doc. 297, 88th Cong., Apr. 14, 1964, pp. 26-27. Part VII of the NAC report. See American Foreign Policy: Current Documents, 1961, pp. 268–278.

of the items traded among this region of 12 million people. As a result, capital from the industrialized countries is being attracted to this developing market. In addition, a comprehensive world coffee agreement was successfully negotiated.

U.S. assistance to Latin America has been greatly expanded and diversified in the past 2 years. It now comprises (1) a revised technical assistance program, (2) a program of lending for new types of projects on terms which have the least impact on the particular country's balance of payments, and (3) a program of encouragement and support for U.S. private investment in Latin America. In the first year following the announcement of the Alliance, the United States provided over $1 billion in public funds in support of its objectives. In the fiscal year ended June 30, 1962, the United States committed $1.2 billion, including $224 million from the resources of the Social Progress Trust Fund, for development projects in 19 Latin American countries under the Alliance for Progress. As indicated in table 16, in fiscal 1963, a total of $1 billion was authorized, including $125 million from the Social Progress Trust Fund. Most of these funds were authorized on a long-term basis and with low interest rates. Over one-half of this amount was provided by the U.S. Agency for International Development.

TABLE 16.-U.S. economic assistance to Latin American Republics, by country and program, fiscal year 1963

1 Excluding British Guiana, British Honduras, Jamaica, Surinam, Trinidad and Tobago, and other West Indies.

NOTE.-Detail will not necessarily add to totals due to rounding.

Source: Agency for International Development.

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UNITED STATES RESUMPTION OF DIPLOMATIC RELATIONS WITH THE GOVERNMENT OF ECUADOR: Statement Issued by the Department of State, July 31, 1963 46

The Department of State has cabled our Ambassador in Quito, Maurice M. Bernbaum, directing him to acknowledge the note of July 12 from the military junta of Ecuador. By means of this acknowledg ment we are resuming relations with Ecuador and are recognizing the military junta as the provisional government of Ecuador. This action was taken after consultation with other hemisphere governments in the light of the following factors:

The United States Government has ascertained that the authority of the military junta has been accepted and recognized throughout the national territory and has noted the junta's stated intention to respect Ecuador's international obligations.

The note of July 12 declared that a military junta constituted by the combined command of the Armed Forces of Ecuador has assumed the responsibility of governing the nation until such time as it would be possible to organize elections in which the people of Ecuador would be able to exercise their will freely within the provisions of a new constitution.

The United States Government has noted with special satisfaction the solemn assurances offered by the military junta of its determination to restore Ecuador to constitutional government at the earliest possible moment. In public statements the junta has indicated its belief that this goal can be achieved in substantially less than 2 years. The junta also has declared its intention to provide a new constitution and lay the basis for the return to civilian government via constitutional procedures. While these assurances offered by the junta have lessened the concern which naturally arose in the United States following the events of July 11, the United States Government reiterates its firm belief, shared elsewhere in the hemisphere, that military seizures of political power should not become an acceptable substitute for constitutional procedures.

"Department of State press release No. 399 (text as printed in the Department of State Bulletin, Aug. 19, 1963, pp. 282-283). The government of President Carlos Arosemena Monroy was overthrown by a military junta on July 11, 1963.

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"I THINK THE ALLIANCE FOR PROGRESS SHOULD BE PURSUED, ITS EFFORTS SHOULD BE INTENSIFIED": Reply Made by the President (Kennedy) to a Question Asked at a News Conference, August 1, 1963 47

I am always depressed, to an extent, by the size of the problems that we face in Latin America, with the population increases, the drop in commodity prices, and all the rest. We sometimes feel that we are not going ahead. In addition, in nearly every country there are serious domestic problems.

On the other hand, there have been some changes in Latin America which I think are encouraging. Ithink there has been a common recog. nition that there is the necessity for revolution in Latin America, and it is either going to be peaceful or bloody. But there must be progress, there must be a revolution. In my opinion, it can be peaceful. In my opinion, given time and concentrated effort on behalf of all of us, in Latin America, and in this country, we can bring about success.

So I think the Alliance for Progress should be pursued, its efforts should be intensified. Wherever it has failed, if it has failed, and it has failed, of course, to some degree, because the problems are almost insuperable, and for years the United States ignored them, and for years so did some of the groups in Latin America themselves, but now we are attempting, we have a program, I think we should pursue it. I think we should do more about it. I am not sure that we are giving still enough attention to Latin America.

What I find to be almost incomprehensible are those who speak about Cuba all the time, and yet are not willing to give the kind of assistance and the kind of support to assist other countries of Latin America to develop themselves in a peaceful way. So I say on the second anniversary [of the Alliance for Progress], we have a long, long way to go, and in fact in some ways the road seems longer than it was when the journey started. But I think we ought to keep at it.

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"THE ADVANCES MADE IN THE FIRST 2 YEARS ARE ONLY A START, BUT THEY ARE IMPRESSIVE": Statement Read by the President (Kennedy) at the White House, August 17, 1963 48

Today, on the second anniversary of the Alliance for Progress, I am heartened by the advances that have been made in a short space of

47 The reply printed here is taken from pp. 617-618 of Public Papers of the Presidents of the United States: John F. Kennedy, 1963.

48

'White House press release dated Aug. 17, 1963 (text as printed in the Department of State Bulletin, Sept. 9, 1963, p. 401). The President's statement was recorded for rebroadcast over the Voice of America and for use at USIS posts in Latin America in connection with celebrations of the second anniversary of the Alliance for Progress.

time. A peaceful revolution is under way in Latin America, and this gives promise of bringing a better life to millions of our fellow Americans in this hemisphere.

The advances made in the first 2 years are only a start, but they are impressive. Some 140,000 new housing units have been constructed; slum clearance projects have begun; there are 8,200 new classrooms; more than 700 new water systems have been built where there had been danger of widespread disease from contamination; land-reform and tax-reform measures have been adopted by many countries; more than 160,000 agriculture credit loans have been made and more than 4 million schoolbooks have been distributed; two common-market agreements are gaining new impetus; a revolutionary step has been taken to stabilize the price of coffee in world markets; more than 9 million children are being fed in 18 countries in a Food for Peace program; road construction, especially in some agricultural areas, is proceeding ahead rapidly.

All this is a beginning, but only a beginning. We have to do a good deal more if this is going to be the sixties, a great Decade of Development. This is a cooperative effort by all of us who live in this hemisphere, north and south-an attempt to provide a better life for our people, a better chance for children to live, a better chance for them to be educated, a better chance for them to hold jobs, better housing for them, a chance to live their older age in peace and in dignity.

These are the objectives of the Alliance for Progress. These objectives must be realized. This program must be a success. The first 2 years is only a beginning. But it is my hope that the people of my own country, the people of other countries of this hemisphere, will continue to join together in a great international effort to make this continent, to make this hemisphere, a source of credit to all of us who live here and an inspiration to all the world. We still have a good deal more to do.

It is my hope that the governments of this hemisphere, including the Government of the United States, and those who enjoy the advantages the people who enjoy the advantages in this hemisphere, including the people of my own country-that all of us will continue to work closely together to provide a better life for all of our people. That is what the Alliance for Progress means-to provide progress, revolutionary progress through peaceful, democratic means. I think it can be done. I think we have set out on an important journey. I think it is a journey that must be finished. To the completion of that journey, I pledge the people of the United States.