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The original documents are located in Box 3, folder "Guatemala - Earthquake (3)" of the
National Security Adviser. NSC Latin American Affairs Staff: Files for Latin America at
the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
1151
Low
FYI It
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
March 3, 1976
F
MEMORANDUM FOR: Mr. George S. Springsteen
Executive Secretary
Department of State
of but
SUBJECT:
S. Res. 390 Concerning Guatemala
On February 17, 1976, the Senate adopted S. Res. 390 in support of
assistance to the people of Guatemala in the aftermath of the recent
earthquakes. We request that you transmit a copy of this resolution
to the Government of Guatemala in accordance with Section 3 of the
Resolution.
Mike Hounday
Jeanne W. Davis
for
Staff Secretary
GERALD ? FORD
staff
4
MEMORANDUM
THE WHITE HOUSE
1151
WASHINGTON
February 23, 1976
MEMORANDUM FOR:
BRENT SCOW CROFT
FROM:
BOB LINDER Lind
Attached is a copy of S. Res. 390, transmitted to the President
by a letter from the Secretary of the Senate. I am forwarding these
items to you for appropriate handling in accordance with Section 3
of the resolution.
Attachment
FORD LIBRARY & OERALO
FRANCIS R. VALEO
SECRETARY
UNITED STATES SENATE
WASHINGTON
February 19, 1976.
Mind
l
The President,
The White House,
Washington, D. C.
Dear Mr. President:
I am forwarding herewith,
for your interest, a copy of Senate Resolution
390. adopted by the Senate on February 17, 1976.
Respectfully yours,
7- R. Vales
Francis R. Valeo,
Secretary of the Senate.
Enclosure:
S. Res. 390.
GERALD
BRARY
S. Res. 390
In the Senate of the United States,
February 17, 1976.
Whereas the people of our sister Republic, Guatemala, suffered
a devastating blow as the result of the recent earthquakes and
tremors in February 1976; and
Whereas these quakes and tremors caused the loss of thousands of
lives and the destruction or devastation of many towns and
villages, rendering homeless many thousands of people; and
Whereas the people and Government of the United States, in
accord with the traditions of the United States, are anxious to
assist the people of Guatemala in their tragic hour of bereave-
ment and suffering; and
Whereas the task of relief, rehabilitation, and reconstruction
which faces Guatemala is huge, requiring outside support and
assistance beyond the present emergency requirements:
Now, therefore, be it
Resolved, That the Senate extend its deepest sympathy to the
President and to the people of Guatemala in this dark hour of
their suffering and distress.
FORD
SEC. 2. It is the sense of the Senate that the executive branch
?
GERALD
LIBRARY
of the United States Government be urged to develop, in coopera-
tion with other potential donors in and outside of the Western
2
Hemisphere, both governmental and private, programs to assist
the people of Guatemala in their efforts to relieve the suffering
caused by the disaster and to rehabilitate their nation from the
damage inflicted.
SEC. 3. Copies of the present resolution shall be distributed
through appropriate channels to the President of Guatemala.
Attest:
7 R. Valeo
Secretary.
GERALD a FORD LIBRARY
Calendar No.
fite carthgorhy Quatim 2
94TH CONGRESS
SENATE
REPORT
2d Session
No. 94-679
GUATEMALA RELIEF AND REHABILITATION ACT
OF 1976
MARCH 3, 1976.-Ordered to be printed
Mr. HUMPHREY, from the Committee on Foreign Relations,
submitted the following
REPORT
[To accompany S. 3056]
The Committee on Foreign Relations, to which was referred the
bill (S. 3056) to amend the Foreign Assistance Act of 1961 to provide
emergency relief, rehabilitation, and humanitarian assistance to the
people who have been victimized by the recent earthquakes in Guate-
mala, having considered the same, reports favorably thereon with an
amendment and recommends that the bill (as amended) do pass.
PURPOSE OF THE BILL
The purpose of the bill is to authorize the appropriation of $25
million to provide relief and rehabilitation assistance to the people
of Guatemala who were victims of the earthquakes which occurred in
that nation in February, 1976.
SUMMARY OF THE MAJOR PROVISIONS IN S. 3056
1. Authorization of Appropriations: The bill authorizes appropria-
tion of $25 million for relief and rehabilitation activities in Guate-
mala. The appropriations are authorized for the fiscal year 1976 and to
remain available until expended.
2. The assistance is to be provided subject to the policy and general
authority of section 491 of the Foreign Assistance Act of 1961 as
amended.
3. Funds authorized by this bill may be used to reimburse appro-
priation accounts from which initial relief funds were drawn, but may
not otherwise be transferred.
FORD
?
57-010
GERALD
LIBRARY
2
3
4. The bill directs that to the maximum extent practicable assist-
ance is to be distributed through United States voluntary relief agen-
by the Subcommittee on Foreign Assistance on February 27 and by
cies and other international relief and development organizations.
the full committee, also by voice vote, on March 2.
5. The bill requires a quarterly report to Congress on the program-
COMMITTEE COMMENTS
ming and obligation of funds provided under its authority.
The Committee on Foreign Relations believes it desirable and ap-
BACKGROUND AND COMMITTEE ACTION
propriate that the United States provide assistance in the amount
On the morning of February 4, 1976, a major earthquake, 7.5 on the
requested to help the victims of the Guatemala earthquake. Moreover,
Richter scale, struck Guatemala leaving more than 22,000 dead, 76,000
the committee believes it of great importance that legislative action
injured and a million homeless. An estimated 20 percent of the people
on this request be completed at the earliest possible time. Unless the
of Guatemala were directly affected by the first tremor and its after-
rehabilitation of homes, community facilities and roads is well under-
shocks.
way by the beginning of the rainy season in May, the suffering of the
The burden of the disaster fell hardest on the rural and urban poor
people of Guatemala will be greatly compounded.
whose adobe homes and poorly constructed shanties collapsed, often
While urging the prompt enactment of this legislation the com-
mittee is nevertheless aware that it has less information than it would
burying families in their sleep. In addition to the individual human
like to have concerning the uses which will be made of the funds to
tragedies, the earthquake caused severe damage to the main highway
from Guatemala City to Puerto Barrios, a road over which a substan-
be authorized in this bill. The President's message requesting funds
tial portion of the commerce of the nation travels. Water supplies, hos-
for relief and rehabilitation in Guatemala provided only a brief out-
pitals, schools and other community facilities were also damaged in
line of the projected uses of these funds.
villages, towns and cities throughout a large area of the country.
Repeated requests to the Agency for International Development
have elicited little additional detail. In all likelihood such information
The Government of Guatemala, the U.S. Government, the govern-
is simply not available at this time and the committee recognizes the
ments of 25 other nations, several international organizations, and nu-
merous voluntary agencies responded to the needs of the people of
problems involved in formulating definitive plans for relief and re-
habilitation efforts in the immediate aftermath of a disaster of this
Guatemala in the immediate aftermath of the earthquake. The U.S.
magnitude.
Government dispatched medical and other specialized personnel, med-
Given the importance which the committee attaches to the prompt
icine, food, temporary shelter, transport vehicles, including helicop-
pursuit of relief and rehabilitation activities in Guatemala it decided
ters, and other supplies needed to assist the injured, identify damage,
not to delay this legislation until detailed plans were available for
and provide the necessities of life to people affected by the earthquake.
review. At the same time, however, the committee wishes to express
The Agency for International Development reports that approxi-
its view that the funds authorized should be spent in close conformity
mately $7.5 million has been obligated or programmed for these ini-
with the purposes and intent described in the President's Message and
tial relief and rehabilitation efforts. Emergency relief operations are
in the testimony and communications to the committee of Mr. Daniel
now beginning to phase down and rehabilitation efforts are expected to
Parker, Administrator of the Agency for International Development.
commence as soon as possible.
In his testimony before the subcommittee, Mr. Parker stated that
On February 19, 1976, the Senate received a message from the Presi-
dent (Appendix I) requesting $25 million for the relief and rehabilita-
the heaviest burden of the disaster fell on the poor, especially the rural
tion of the victims of the earthquake in Guatemala. A subsequent
poor. As outlined in the President's message a substantial portion of
the assistance provided in this act would be used for direct assistance
Executive Branch communication (Appendix II) included an outline
of the proposed uses for the funds requested. This communication also
to the rural and urban poor whose homes and community facilities
noted that to be effective, additional relief and rehabilitation efforts,
were damaged or destroyed. The committee agrees with this intention.
particularly housing reconstruction and road repair should be com-
The committee emphasizes that it is recommending authority to
provide assistance for relief and rehabilitation. These funds are not
pleted before the rainy season begins in May. Earlier, on February 16,
the Subcommittee on Western Hemisphere Affairs and the Subcom-
to be used as a supplement or addition to economic development pro-
grams or activities authorized under other sections of the Foreign
mittee on Foreign Assistance jointly had received testimony on the
Assistance Act.
situation in Guatemala from Daniel Parker, Administrator of the
The committee has taken note of reports that, in the past, funds in-
Agency for International Development.
The administration bill was introduced by Senator Sparkman, by
tended for direct assistance to people affected by disasters have been
request, as S. 3044 on February 25. The following day Senator Hum-
used to procure and provide to host governments expensive capital
phrey, for himself and Senator Kennedy introduced S. 3056. The latter
equipment of questionable value to those who were bearing the greatest
bill was considered and approved with an amendment by voice vote
burden of the disaster. Funds authorized to be appropriated under
this act must not be used to provide such equipment. The committee
understands that the transfer to the Government of Guatemala of
S.R. 679
S.R. 679
4
5
some equipment used for road construction or medical purposes may
therefore, urges the executive branch to give favorable consideration
be desirable, but the committee would not expect other transfers, and
to participation with other nations in meeting the appeal of the
certainly not any significant deviation from these understandings,
UNHCR.
without prior consultation.
The committee is also aware of the relief work now being carried out
The committee has noted reports of the effective response of U.S.
in Lebanon by the International Committee of the Red Cross and by
and other voluntary organizations to the needs of the victims of the
the American University of Beirut Hospital. The executive branch
earthquake in Guatemala. The committee calls attention to its intent
has provided support for this work in the past and should continue to
that to the maximum extent practicable assistance be distributed
give it favorable consideration. Other private and voluntary organiza-
through the United States and inter-American voluntary agencies.
tions have issued special appeals. The committee hopes that each of
The draft bill for Guatemala relief submitted by the executive
these will be given separate consideration on its own merits.
branch would have created independent statutory authority for these
There are a number of sources from which the executive branch can
activities. The committee did not agree with this procedure, preferring
fund assistance for Lebanon without new legislative action. Subsec-
instead to place these activities under title I of the Foreign Assistance
tion 495A(f), which would be added to the Foreign Assistance Act
Act of 1961, as amended. This new section of the act was created by
by this bill, gives the executive branch the authority to transfer valid
the International Development and Food Assistance Act of 1975
charges for Guatemala relief from the general disaster relief account
specifically to provide a consolidated coherent body of legislation on
to the special Guatemala disaster relief account authorized by sub-
disaster relief and assistance. At the time that 1975 act was under
section 495A (c). Based on existing obligations in the disaster relief
consideration, the Administrator of AID himself wrote the committee
account, and assuming the account is fully funded for the fiscal year
expressing the executive branch view that "it is preferable to include
1976, the approval of this authority would make adequate funds avail-
legislation on international disaster relief assistance in the basic
able for disaster relief in Lebanon during the fiscal year 1976. The
Foreign Assistance Act, rather than as a separate law." The committee
committee also notes that the legislative history of the contingency
action is consistent with that view.
fund, section 451 of the Foreign Assistance Act of 1961, as amended,
Relief Assistance to Lebanon
makes it clear that the contingency fund may be used for famine and
disaster assistance such as that needed in Lebanon, as well as other
The committee has recently received various proposals to provide
contingencies. In the case of both the contingency fund and the regu-
emergency relief and rehabilitation to the people of Lebanon. An
lar disaster account, funds provided for the transition quarter could
amendment submitted to the committee by Senator Abourezk proposed
be added to fiscal year 1976 funds to meet needs during the current
such assistance to Lebanon as a part of the present Guatemala relief
calendar year.
legislation.
The committee urges the executive branch to consider all of these
The need for such assistance is recognized following the civil strife
sources of possible funding, as well as emergency food supplies avail-
which has devastated Beirut and other cities and villages throughout
able under Public Law 480, as it evaluates appeals from the UNHCR
Lebanon. This struggle has left thousands wounded, homeless or in
an other worthy international agencies and private and voluntary or-
less than adequate shelter. Many more, especially children, are sick and
ganizations. If appropriate, direct appeals from the Government of
hungry.
Lebanon could be considered, but the committee feels that contribu-
The United Nations High Commissioner for Refugees (UNHCR)
tions and distributions must be made on a non-ideological, non-
has recently issued a special appeal for $50 million for emergency
political basis to the people of both religious communities who have
relief programs in Lebanon to be administered by the UNHCR and
suffered from the war. U.S. assistance must be used only for the
other UN agencies during calendar year 1976. The committee has been
advised that the portion administered by the UNHCR (approximately
support of programs which are administered in such a way that
$25.5 million) would be used to repair housing and replace minimal
distribution is not controlled by or channeled through political fac-
essential household equipment such as blankets, clothing, and mat-
tions on outside forces such as the Palestine Liberation Army or other
tresses, and for medical supplies. Another portion, about $14 million
groups under non-Lebanese control. The committee strongly favors
would be used by the United Nations Children's Fund (UNICEF)
the use of the UNHCR and selected voluntary agencies as the vehicles
for maternal and child feeding. Approximately $5 million would be
for the distribution of the U.S. relief support.
for health services and medical supplies administered by the World
The committee expects the executive branch to report to the com-
Health Organization, and about $500,000 would be administered
mittee not later than May 1, 1976, on its action to carry out a program
through UNRWA, with the remaining $5 million to cover administra-
of assistance to the people of Lebanon, SO that the committee may
tion costs.
consider the progress of such a program and a projection of further
The committee notes that the United States has already obligated
emergency aid before final Senate action on a fiscal year 1977 foreign
$959,805 from existing disaster relief funds to aid the people affected
assistance bill.
by this man-made disaster. But much more is needed. The committee,
S.R. 679
S.R. 679
6
COST ESTIMATE
Section 252 (a) (1) of the Legislative Reorganization Act of 1972
requires that committee reports on bills and joint resolutions contain:
(a) An estimate made by such committee of the costs which would
be incurred in carrying out such a bill or joint resolution in the fiscal
APPENDIX I-PRESIDENT'S MESSAGE
year in which it is reported and in each of the five fiscal years fol-
lowing such fiscal year.
To the Congress of the United States:
The committee estimates that the cost of implementing this bill will
On February 4th a devastating earthquake struck Guatemala. That
be approximately as follows:
earthquake, together with its aftershocks, has left over 22,000 dead,
Fiscal period:
Outlays in millions
more than 75,000 injured, and one million homeless.
1976
$14
The United States has a special responsibility to help meet the
Transition quarter
5
urgent needs in Guatemala. Immediate aid has already been extended
1977
6
by U.S. agencies, both public and private, including:
-Emergency shelters, medical supplies and food provided by the
Agency for International Development.
-Transportation and medical facilities provided by the Depart-
ment of Defense.
-Food distribution, medical services, and other disaster relief ac-
tivities provided by numerous private voluntary agencies.
Last week I dispatched my Special Coordinator for International
Disaster Assistance-AID Administrator Daniel Parker-to Guate-
mala for a firsthand review of the situation. He has now reported to
me and to Congressal Committees on the extent of damage and need.
Both the Senate and the House of Representatives have passed resolu-
tions expressing sympathy for the people of Guatemala in their hour
of distress and urging development of a comprehensive U.S. response.
The Secretary of State will visit the Republic of Guatemala on Feb-
ruary 24 to express further our support for the people of Guatemala.
I am now proposing urgent and specific action to turn these expres-
sions of sympathy into tangible assistance. The proposed $25 million
"Guatemala Disaster Relief Act of 1976" which I am sending herewith
represents an immediate humanitarian response of the United States
to the victims of this tragedy who have been injured or have lost their
relatives, their homes and possessions, and in many cases their very
means of existence.
This legislation, and the ensuing appropriation, will enable us to
respond to the human tragedy in Guatemala. Our response will reflect
America's concern for the people of Guatemala.
GERALD R. FORD.
THE WHITE HOUSE, February 19, 1976.
(7)
S.R. 679
S.R. 679
9
of Guatemala was to dispatch a U.S. Military Disaster Assistance
Survey Team from Panama and airlift a 100-bed U.S. military field
hospital, fully staffed and equipped. Eighteen helicopters were de-
ployed; medical supplies, tents, blankets and water equipment from
U.S. disaster stocks followed. Additional teams of engineers, water
APPENDIX II-AID PROPOSALS
specialists and medical/communication specialists were also sent to
Guatemala to assist the Government.
DEPARTMENT OF STATE,
The funds cover the continuing costs of initial emergency relief
AGENCY FOR INTERNATIONAL DEVELOPMENT,
operations provided by the Department of Defense, other participat-
Washington, February 19, 1976.
ing U.S. agencies, procurement of supplies, transportation, grants to
Hon. NELSON ROCKEFELLER,
U.S. Voluntary Agencies, the OAS, replacement of disaster stocks in
President, U.S. Senate,
Panama and other support costs. The actual level of expenditure will
Washington, D.C.
depend on the duration of the emergency phase, and particularly on
DEAR MR. PRESIDENT: It is my honor to forward herewith explana-
the timing of withdrawal of the helicopters, and medical support.
tory material entitled "Proposed U.S. Relief and Rehabilitation of the
Victims of the Guatemala Disaster." This material has been prepared
(B) RURAL REHABILITATION ($7.5 MILLION)
in order to assist the Congress in the consideration of the proposed
Guatemala Disaster Relief Act of 1976 transmitted by Presidential
1. Shelter
message on February 19, 1976.
Funds would be allocated to supply critically needed supplementary
Proposed U.S. assistance would be concentrated on the immediate
building construction materials and hand tools for up to 100,000 units
needs of the poor in Guatemala who have borne the brunt of this
of rural and small community housing in the devastated Indian high-
human tragedy in terms of death, injury, disease and economic loss.
lands. The uniqueness of this disaster was its effect on the rural poor
The construction of temporary shelter and reopening of key trans-
who because of the very nature of construction of their dwellings
portation arteries are vital first steps. After completing a first hand
were singled out as the major victims of the earthquakes. The Gov-
review of the situation in the field at the President's request, I can
ernment of Gatemala estimates that more than 150,000 such dwellings
assure you that that human suffering in Guatemala is serious and
were lost in the earthquakes and subsequent tremors, in addition to
deserves the urgent consideration of the Congress.
more than 100,000 urban dwellings. We expect that roughly 1/3 of the
Sincerely,
rural needs will be rebuilt through individual and direct GOG and
DANIEL PARKER.
other donor assistance. To meet the balance of this requirement, and
Enclosure.
in support of self-help efforts, simple materials and tools that can be
purchased locally or in nearby countries or, as necessary, shipped
PROPOSED U.S. RELIEF AND REHABILITATION OF THE VICTIMS OF THE
from the United States will be employed. We contemplate as was
GUATEMALAN DISASTER
done in response to Hurricane Fifi in Honduras with considerable
efficiency and economy, a grant-funded program executed through key
The total amount requested will permit AID to continue participa-
private voluntary agencies such as CARE, wherein small farmers and
tion, in close collaboration with the Government of Guatemala and
the rural poor in general will be provided relatively inexpensive roof-
other donors, to help meet the highest priority immediate relief and
ing materials (e.g., galvanized tin and asbestos composition corrugated
rehabilitation needs. In addition to the ongoing emergency relief oper-
sheets), hammers, saws, chisels, nails, reinforcing bars, simple hard-
ations, our proposed input literally is geared to helping Guatemala to
ware, etc., and limited technical help. Involvement of existing co-
win a race against the elements-with an eye on the rainy season which
operative organizations in the Indian highlands also will be stressed.
normally begins in approximately 90 days. So as to minimize further
Experience in similar situatións has shown that the bulk of such re-
suffering and additional major economic dislocation, at the request of
construction is carried out by the families involved. In fact, the proc-
the Government of Guatemala and based on continuing assessment in
ess of clearing necessary sites and sorting out materials already has
the field, we will concentrate assistance over the coming few months
begun. Attention to farming and other economic activity typically
primarily on helping to insure adequate temporary shelter with sup-
takes second place to providing shelter for the surviving family, mak-
porting community facilities and on reopening critical transportation
ing this activity not only an essential element of social rehabilitation,
links, especially the badly damaged Guatemala City-Caribbean High-
but of economic import as well.
way, the main artery essential to the country's economic viability.
Benefits of research sponsored by AID since the 1970 earthquake in
Peru will be applied, to the extent possible, in improving seismic re-
(B) EMERGENCY RELEF OPERATIONS ($7.5 MILLION)
sistance of basically adobe construction. With minimal cost increases,
The initial response of the U.S. Country Team in Guatemala and
it is hoped that the affected families, with the direct help of the in-
AID's Foreign Disaster Relief Center to requests of the Government
volved PVO's and cooperatives, will by the onset of the rainy season
(8)
S.R. 679
S.R. 679
11
10
(D) OTHER URGENT ENGINEERING AND CONSTRUCTION REQUIREMENTS
be sheltered in conditions that are sufficiently comfortable and secure
($2.5 MILLION)
to restore to them at least a semblance of the life-hard as it has al-
ways been-they knew prior to February 4. Roofing materials to be
Based on the results of high altitude aerial reconnaissance, danger-
supplied will be of a kind that will limit the extent of personal injury
ous topographical changes appear to have developed in various parts
in any future earthquakes (as compared to titles commonly used) and
of the earthquake-affected area. Possible flooding from the rupture of
also will be useable in more permanent construction.
naturally-formed dams as water accumulation occurs, particularly
2. Supporting Community Facilities
after the onset of the rainy season, could cause severe additional loss
To the extent complementary, relatively simple construction needs
of life and physical damage if not corrected opportunely. Specialists
can be met quickly and economically, assistance also will be extended
in dealing with the difficult engineering and demolition problems en-
tailed and other assistance as necessary, beyond that which is avail-
to restore a minimum of vital community services (small farmer mar-
kets, schools, slaughtering facilities, health posts, etc.) to permit com-
able and can be financed in-country, will be provided.
munities to continue their traditional role as providers of social stabil-
Summary
ity and cohesion in the Indian areas. In all cases, such assistance will
Immediate relief efforts, complemented by the undertakings listed
be limited to keeping communities socially and economically viable
above, represent a basic, necessary and immediate response to pressing
until broader, more durable, public services can be restored. In this
humanitarian and economic needs felt by the Government of Guate-
effort, close coordination will exist with the GOG's Municipal Devel-
mala and confirmed by our field assessments. They are essential to re-
opment Institute (INFOM), with which AID has had a long and
storing near-normal life in Guatemala and to recapturing the momen-
successful relationship in Guatemala.
tum of development progress which, under the administration of
As needed and requested by voluntary agencies with known com-
President Laugerud, had only recently begun to move the large mass
petence, funds will be made available to support Guatemalan Govern-
of Guatemala's urban and rural poor closer to enjoying the benefits
ment efforts in relieving the social trauma of victims.
of growth.
Some shifts in the application of requested funds may prove neces-
(C) TRANSPORTATION LINKS, INCLUDING RESTORATION OF THE GUATEMALA
sary as assessments of needs and costs continue to be refined and as the
CITY-CARIBBEAN HIGHWAY ($7.5 MILLION)
financial capacity of the Guatemalan Government itself and assistance
from other donors can be better identified.
Based on a careful survey just completed by an 11-man U.S. Army
In this connection, AID will remain alert to ways of applying funds
Corps of Engineers detachment, it now appears that in a period of 60-
not only SO as to meet pressing shelter and vital communications prob-
75 days (before the rainy season makes such work difficult, if not im-
lems in the short run, but to facilitating as well, by community and
possible), the immediate phase of restoring Guatemala's principal ex-
cooperative action especially suitable in the Indian highlands of Gua-
port and import link with the rest of the world can be accomplished.
temala, broader participation in the very process as well as the bene-
The road must be made passable for the thousands of trucks and
fits of development.
buses which normally transit this highway, now interrupted by a
Time has now become the major opponent in the continued support
bridges. stretch of approximately 50 miles of severe slides and destroyed
of our Government and people to Guatemala. If the assistance pro-
posed herein can be made available immediately, essential work can
If this work can be accomplished, as proposed, using the services of
be completed before the onset of the rainy season, SO alleviating addi-
the U.S. Army Corps of Engineers, or other emergency help that can
tional anguish for a burdened people.
be mobilized immediately, it is expected that the Guatemalan Govern-
ment will be able to provide the maintenance capability to keep the
road open during the rainy season. In the meantime, there are indica-
tions that international financing should be available for the major
job of permanent reconstruction that cannot begin until later in the
year when the detailed engineering and weather conditions would per-
mit this major operation to get underway.
Additionally, destruction of a number of vital farm-to-market roads
in the Indian highland area has cut off communities from the access
they need to maintain some economic touch with 20th century life.
Special priority will be given to opening up these vital lifelines of
communication, necessary to facilitating broader reconstruction efforts
in the future.
S.R. 679
S.R. 679
~> Low
s 3
MEMORANDUM
1258
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
(Correspondence Referral)
March 10, 1976
TO:
ROLAND ELLIOTT
FROM:
JEANNE W. DAVIS not
REFERENCE:
Eg
To: The President Date: February 10, 1976
From: Pedro de Mesones
Subject: Suggests Visit by Mrs. Ford or Susan Ford
to Guatemala
Comment:
A draft reply is attached at Tab A. The incoming letter is
attached at Tab B.
Attachments
GERALD & FUMD LIBRARY
SUGGESTED REPLY
Dear Mr. Mesones:
The President has asked that I reply to your letter of February 10,
suggesting a visit by Mrs. Ford or Susan Ford to Guatemala.
As you know, the President has been closely following develop-
ments in Guatemala since the tragic earthquake of February 4. Quick
action was taken by this government to provide emergency assistance.
The President sent Daniel Parker, his Special Coordinator for Interna-
tional Disaster Assistance, to Guatemala on February 12 to make a personal
assessment of damages done and assistance needed and met with him on
several occasions to discuss the ongoing relief needs. On February 19
the President submitted to the Congress a Special Bill for Guatemalan
Relief and Rehabilitation calling for grant assistance of $25 million.
Secretary of State Kissinger visited Guatemala on February 24
to convey personally the condolences of the American Government and
people.
We appreciate your expression of interest and the benefit, of your
constructive idea.
Sincerely,
Mr. Pedro de Mesones
Pedro de Mesones Associates, Inc.
FORD
1625 Eye Street, N.W., Suite 903
?
Washington, D.C. 20006
GERALD
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Telephones: (202)331-0447.8
Pedro de Mesones & Associates, Inc.
7603417
1625 Eye Street, N. W.
Suite 903
Washington, D. C. 20006
February 10, 1976
The Honorable Gerald R. Ford
President of the United States
The White House
Washington, D.C. 20500
Dear Mr. President:
As a staunch Republican interested in your 1976
election, please allow me to suggest a goodwill trip by
Mrs. Ford or your daughter, Susan, to Guatemala to offer
both your personal and this country's condolences and
assistance in their recent tragedy.
Without question, this action would be seen by all
the Latin American countries as a gesture of friendship
and would certainly enhance Secretary of State Henry
Kissinger's reception in his upcoming trip to Latin
America. This also would be a fine beginning in re-
establishing your credibility with and obtaining support
from the Hispanic American population in this election
year.
Respectfully,
de memory
Pedro de Mesones
PdeM: fe
CC: The Honorable
Henry A. Kissinger
FORD
R.
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4
MEMORANDUM
1431
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
(Correspondence Referral)
March 11, 1976
TO:
JON HOWE
FROM:
JEANNE W. DAVIS
REFERENCE:
To: The Vice President Date: February 17, 1976
From: Michael Tolbert
Subject: Offering services for Guatemala relief effort.
Comment:
A draft reply is attached at Tab A. The incoming letter is
attached at Tab B.
Attachments
GERALD
FORD LIBRARY &
SUGGESTED REPLY
Dear Mr. Tolbert:
The Vice President has asked me to reply to your letter of February 17
in which you express your desire to assist in the emergency relief
program for Guatemala. The devastation and destruction caused by
the earthquake of February 4 were indeed terrible blows for the people
of a neighboring country to suffer. It has been truly gratifying to see
so many private US citizens offer their services to help with relief efforts.
The United States Government has been conducting extensive relief
operations since the earthquake struck on February 4. As you no doubt
know, we have been working through the regular staff of our Agency
for International Development (AID) Mission in Guatemala, as well as
in cooperation with several private voluntary agencies that have active
programs in the country. I would therefore suggest that you write directly
to the voluntary agencies, offering your services. I enclose for your
information a report listing all the private non-profit groups working
in Guatemala. The report contains a brief description of the type of
project in which each group is engaged.
GERALD ? LIBRARY FORD
2
I trust that this information will give you a good starting point in
identifying those agencies that could effectively utilize your services.
Thank you again for your interest and concern.
Sincerely,
Enclosure:
Development Assistance Programs
of US Non-Profit Organizations
in Guatemala
Mr. Michael L. Tolbert
P.O. Box 5452
Austin, Texas 78763
GERALD ? LIBRARY FORD
CH COUNTRY REPORT
givent Paul Boll
DEVELOPMENT ASSISTANCE PROGRAMS OF U.S.
NON-PROFIT ORGANIZATIONS IN
GUATEMALA
SEPTEMBER 1974
PUERTO
BARRIOS
COBAN
UEZALTENANGO
e
GUATEMALA
GERALD ? LIBRARY FORD
GUATEMALA
COLEGIO INTERNACIONAL DE CARACAS
formerly
ACADEMY LA CASTELLANA (1956-1971) and THE HIGH SCHOOL OF COLEGIO AMERICANO (1947-1971)
operated by
Academy La Castellana, Asociación Civil
7604328
Grades K-12 Altos de La Trinidad. Las Minas. Baruta . Telf. 93.07.08. 93.06.08, 93.04.44
MAILING ADDRESS: Apartado 62170 Caracas, Venezuela
P.O. Box 5452
Austin, Texas 78763
February 17, 1976
Vice-President Nelson Rockefeller
Washington, D.C.
Dear Vice-President Rockefeller:
I am sending this very important and urgent request to you as I know you have
had an interest in Latin American problems for many years. I want very much to
offer my time and service to the relief program in Guatemala, but have not
yot received positive action from the dozens of agencies to whom I have
written. I am in a unique position at present to offer my time, and feel
that I could be of service.
I am a social science teacher, between job assignments, with six months of free
time. This rarely occurs in teaching, and since the Nicaraguan earthquake of
1973 I have wanted to offer assistance in Central America, but was always tied
to teaching positions which prohibited my leaving.
I am twenty-six, single, and have studied and lived in Latin America. I
hold an M.A. in social science education, but would be interested in
helping in any possible manner in Guatemala. It would not have to be
associated with education. I am interested in work through the auspices of
the U.S. Government, international agencies, or private business.
I would like to ask your assistance in coordinating my inquiry with the heads
of agencies which you know to be involved in Guatomala. I would even appreciate
it if you would send a copy of this letter to your brother at Chase Manhattan.
I know there are many agencies, companies, and programs with which I could
offer my services, if only I could reach them. Thanks for your help.
Sincerely,
Michael L. Tolbert
FORD
(te1:512-392-6759)
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MEMORANDUM
1226
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
(Correspondence Referral)
March 12, 1976
TO:
VERNON LOEN
FROM:
JEANNE W. DAVIS
REFERENCE:
To: The President
Date: February 25, 1976
From: Don Fuqua (M.C.)
Subject: Suggests shipping mobile homes to
Guatemala for the use of the earthquake victims.
Comment: As explained in the draft reply, the State
Department has checked with the Department of Housing
and Urban Development and has determined that mobile
units would be too expensive to purchase and transport
to Guatemala. AID will be purchasing metal roofing
sheets as a quicker and more economical way to provide
shelter.
You sent the Congressman an interim reply on
February 27.
A draft reply is attached at Tab A. The incoming letter is
attached at Tab B.
Attachments
FORD LIBRARY &
SUGGESTED REPLY
Dear Mr. Fuqua:
The President asked me to reply further to your letter of February 15
suggesting the use of mobile homes to provide shelter for the victims of
the recent earthquake in Quatemala. We asked the Department of State
to look into the logistics involved in your interesting idea.
The Department of Housing and Urban Development does maintain several
thousand mobile home units in various locations around the United States
for use as temporary shelter for victims of natural disasters. Unfortunately,
these units are quite large, about 65 feet long, and cost on the average
around $5,000 each, not including transportation. Shipping these units
to Guatemala and then relocating them in the mountainous regions where
most of the earthquake victims live would be an additional and quite
substantial expense.
Because of the limited availability of funds, and the need to act quickly
before the advent of the rainy season in May, the Agency for International
Development, which is coordinating US relief efforts, believes that faster,
more widespread and more economical relief for the homeless can be
obtained by concentrating on shelters that can be constructed with
GERALD ? LIBRARY FORD
2
materials already available in Guatemala or in neighboring countries,
or that can be shipped in bulk from the US. Steel or aluminum roofing
sheets are a case in point. AID is in the process of purchasing a sub-
stantial number of these sheets for distribution through voluntary agencies
already working in Guatemala.
Since almost all of the victims of the earthquake will be reconstructing
their homes out of adobe, which is their traditional building material,
AID is also providing assistance to demonstrate some simple techniques
that will make the adobe bricks stronger and more stress-resistant.
Strengthened walls and stronger and lighter metal roofs should provide
for a sturdier and more earthquake resistant home that can be erected
by an individual family.
We thank you again for your suggestion and for your interest in this
matter.
Sincerely,
Honorable Don Fuqua
House of Representatives
Washington, D.C. 20515
FORD LIBRARY & 03
1266
2-26
DON FUQUA
2266 RAYBURN HOUSE OFFICE BUILDING
WASHINGTON, D.C. 20515
2D DISTRICT
FLORIDA
aid for
UNITED
CONGRESS OF THE UNITED STATES
HOUSE OF REPRESENTATIVES
WASHINGTON, D.C. 20515
February 25, 1976
MF
The President
The White House
Washington, D. C.
Dear Mr. President:
This nation and the world are deeply concerned over the plight of the
people of Guatemala where tens of thousands have been left destitute and
without adequate food and housing.
It has come to my attention that our government owns thousands of mobile
homes and this could prove to be a source of immediate housing for many
of these homeless families if they could be shipped to that unfortunate
land. It is my suggestion that some thought be given to the use of
these mobile homes in this fashion since they are readily available and
would help bring this grief stricken land back to its feet.
Any attention which can be given this request will be deeply appreciated.
Unique
DF/Wcb
GERALD ? LIBRARY FORD
1226
Low
March 16, 1976
of
Dear Mr. Fugus:
The President asked se to reply further to your letter
of February 15 suggesting the use of mobile homes to
provide shelter for the victims of the recent earth-
quake in Customals. We asked the Department of State
to look into the logistics involved in your interesting
1dea.
The Department of Housing and Urban Development does
maintain several thousand mobile home units in various
locations around the United States for use as temporary
shelter for victims of natural disasters. Unfortunately
these units are quite large, about 65 feet long. and
cost on the avarage around $5,000 each, not including
transportation. Shipping these units to Guatenala and
then relocating them in the countainous regions were
most of the earthquake victims live would be an additional
and quite substantial expense.
Because of the limited availability of funds, and the
need to act quickly before the advent of the rainy coason
in May, the Agency for International Development, which
is coordinating U.S. relief efforts, believes that faster,
more widespread and more economical relief for the home-
less can be obtained by concentrating on shelters that
can be constructed with naterials already available in
Guatemala or in neighboring countries, or that cas be
shipped in bulk from the U.S. Steel or aluminum roofing
sheets are a case in point. AID is in the process of
purchasing a substantial number of these shoots for
distribution through voluntary agencies already working
in Cuatemala.
Since almost all of the victims of the earthquake will
be reconstructing their homes out of adoba, which in their
traditional building material, AID is also providing
assistance to demonstrate some simple techniques that will
make the adobe bricks stronger and more stress-rosistent,
FORD
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GERALD
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2
-rengthened walls and stronger, lighter metal roofs
should provide for a sturdier, more earthquake resistant
home that can be erected by an individual family.
We thank you again for your suggestion and for your
interest in this matter.
Sincerely,
Vernon c. Loan
Deputy Assistant
to the President
The Honorable Don Fuqua
House of Representatives
Washington, D.C. 20515
bcc: NSC (Log #1226) PYI
VCL:NSC:JEB:mlg
GERALD
A FORD LIBHARY
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MEMORANDUM
1149
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
(Correspondence Referral)
March 24, 1976
TO:
ROLAND ELLIOTT
FROM:
JEANNE W. DAVIS
REFERENCE:
To: The President Date: February 24, 1976
From: John Bird
Subject: Morrow Associates and Emergency Supplies
for Guatemala.
Comment: No comment.
A draft reply is attached at Tab A. The incoming letter is
attached at Tab B.
Attachments
R FORD LIBRARY
SUGGESTED REPLY
Dear Mr. Bird:
I am writing in reply to your telegram of February 24 to
President Ford concerning your firm's efforts to sell food and medical
supplies after the recent earthquake in Guatemala. I have asked the
Department of State to look into the allegations that your firm was
discriminated against in the purchase of relief supplies.
The United States acted very rapidly following the earthquake
to provide emergency assistance. I enclose for your information a
"Report to the President" that details some of our actions to rush food,
medical supplies, and hospital facilities to the victims. At the specific
request of the Government of Guatemala, U.S. Government relief efforts
were concentrated almost entirely in the small villages and towns of the
hardest hit rural areas. A 100-bed U.S. Army field hospital was set up
in the small town of Chimaltenango and U.S. helicopters and mobile
medical teams brought food and medical assistance into the remotest
areas of the Central Highlands. Almost all of the rehabilitation and
reconstruction assistance that the U.S. Government plans to provide
to Guatemala will likewise be concentrated in the rural areas outside
of the capital city.
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As to the purchase of emergency supplies of food and medicine,
stocks on hand in Guatemala, or donated free of charge by various
charitable, civic, and business organizations, and foreign governments,
including the U.S., were sufficient to meet emergency needs. Because
of the generosity of the various donors, it was not necessary to purchase
additional imported supplies.
I can recognize your disappointment that the firms you represent
were not able to market their products in Guatemala immediately after
the earthquake. I have been assured, however, that none of the actions
taken by representatives of the U.S. Government were intended to block
the sales efforts of U.S. firms. Our single objective was, and is, to
help provide emergency assistance to the victims of the earthquake in
the quickest, most efficient way.
Sincerely,
Mr. John Bird
Morrow Associates
4028 Daley Street, Suite 104
Fort Worth, Texas 76118
GERALD & LERRARY FORD
DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON
THE ADMINISTRATOR
February 16, 1976
SPECIAL REPORT TO THE PRESIDENT
ON THE GUATEMALA DISASTER
In seismic terms, the Guatemalan earthquakes were "major";
in human terms, this disaster must be ranked as a tragedy of
great and terrible magnitude. Based on my visit to Guatemala
on February 12 and 13, I will attempt first to give you a
brief overview of the disaster and its setting.
General Situation
The major shock area is large - about 3,530 square miles, or
equivalent to the Grand Rapids-Kalamazoo-Battle Creek area
of Michigan. 1.03 million people populate the area and 80 -
90 percent are now homeless. In the entire affected area,
22,360 are dead, 74,000 were injured and over one million
were left homeless. (The wife of President Laugerud,
concentrating on assistance to children, estimates at least
5,000 children became orphaned.) Overall, 20 percent of the
country's people are directly affected. I should mention
that as harder information comes in, the numbers keep rising.
In U.S. terms, comparable figures would mean 2,800,000
killed and injured and 38,000,000 homeless.
The greatest impact is upon the poor - and it is essentially
a rural disaster. The rural poor cluster their small adobe
homes in villages. Adobe brick walls, while they look
FORD
substantial, are not strong. They collapsed allowing the
&
heavy clay tile roofs to fall in on the sleeping victims.
The urban poor live in make-shift shacks which simply fell
apart.
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It is relevant to make two interesting side comments to the
above. First, the casualty toll was great and the count was
difficult to make because so many victims were trapped,
unable to get outside before their dwelling collapsed during
the approximate thirty seconds of the main shock. Second,
conventionally built homes, especially the newer, though
damaged, were not destroyed, thus inflicting fewer and less
serious casualties.
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Compounding the dimensions of the disaster was that it took
place at 3:02 a.m., the time when the greatest proportion of
the population was inside, asleep and not alert to respond
quickly. And adding at least to the confusion was the
darkness. Where electricity existed, it was cut or turned
off to reduce chances for fire and electrocution from exposed,
high-tension lines.
Outside Guatemala City, the terrain, rugged, mountainous,
probably of volcanic formation, makes communications of any
kind (roads, phones, even radio) difficult even in normal
circumstances. Thus, in the vast hard-hit rural area virtu-
ally all immediate relief assistance was limited to that
available locally. The sudden, gigantic and urgent needs
for emergency help, tools, medicines were largely unmet
during the crucial early hours and first days until rescuers
could make their way in by some means.
Before turning to the response stage, I would like to mention
another facet, parenthetically. Your description to me of
the unusual nature of an earthquake you had seen some years
ago in Yugoslavia was confirmed. It is awesome. It is
almost eerie. Unlike other types of disasters, there is no
clear-cut point marking the end of exposure to further risk.
More than 600 tremors have been felt since the first quake.
They are still happening. Several of the many I felt were
severe enough shocks to do additional damage and to be
visible in the sense of seeing the movements of the building
I was in.
This has resulted in a widely felt sense of insecurity. A
view of Guatemala City from a helicopter reveals tents in
gardens, parks and on the sidewalk or street in front of
homes seemingly and reportedly not seriously damaged. Also,
many people sleep in their cars, if they don't have tents or
other shelter from the very cool nights.
My impression is that, in immediate response to the disaster,
virtually everyone who wasn't a victim turned, unhesitatingly,
to aid others. President Laugerud, for example, took direct
personal command immediately and was even able to check on
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one hospital's response capability within 27 minutes after
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the quake.
This self-initiated individual type of response quickly
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became organized by entity, e.g., government ministry,
church or civic group, and voluntary agency. Then with the
formation of the National Emergency Committee by the Presi-
dent there came the means of beginning to coordinate activ-
ities for a national response, including the allocation of
assistance resources to areas of priority need.
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I. Assessment of Damage
A. Physical Damage
Damage is concentrated in the densely populated Indian-
inhabited Eastern Highlands, portions of the capital city
and wide areas to the west, roughly 20 percent of the area
of the country. A number of important rural population
centers in the affected area were nearly totally destroyed,
including Mixco (population 10,900), San Pedro (4,800),
Patzicia (7,100), Patzun (8,300), Joyabaj (2,400), Tecpan
(5,900), San Juan Sacatepequez (6,700), and E1 Progreso
(4,000).
1. Housing and Other Building Damage
By far the most devastating impact of the earthquake was on
the housing of the poor. The great majority of Guatemala's
population resides in small towns and rural areas in adobe
houses. Over 150,000 of these are estimated by the Govern-
ment of Guatemala to have collapsed. In Guatemala City,
some 100,000 dwellings of the urban poor were destroyed.
The value of these urban and rural dwellings has not been
determined. In most cases, they were built by the families
who occupied them. It is probable that they will be rebuilt
in the same fashion. A rough estimate of the financial
costs of replacement might range from $150-$250 million,
depending on whether new construction will adopt earthquake
resistant design improvements.
There was, of course, loss to commercial, church, and public
buildings, essentially in the small rural towns. No estimates
are available, as yet, on these losses.
Several major hopsitals in the capital were damaged by the
quake and their staffs have been operating in other available
buildings on a make-shift basis, pending assessment, repair,
or replacement of damaged hospitals. Hospitals in several
other communities were also severely damaged, as were many
health centers and health posts.
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2. Infrastructure
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(a) Transport and Communications
The Guatemala City-Puerto Barrios highway and railroad, the
primary transportation links from the capital to the Caribbean
coast, have been cut because of a three-span fallen bridge
and numerous landslides. A U.S. military engineer survey
team is now in the field assessing the extent of damage.
- 4 -
A much more circuitous road from the coast to the capital is
still open, but cannot handle the entire heavy traffic load
that normally passes between the capital and the coast.
Preliminary estimates of the cost of restoration of the road
from Guatemala to the Caribbean approach $25 million. In
many areas of the highlands, roads also have been blocked by
numerous slides. An estimate of cost of restoring major and
secondary roads throughout the damaged area is $35 million,
of which the major cost will probably be for the main highway
artery to Puerto Barrios. The cost to repair the railroad
is not yet known.
Telephone communications, never particularly good, have been
severely damaged by the quake. Phone lines are down through-
out the affected area. Restoration is under way. However,
it will be some weeks before all major phone lines are
repaired.
(b) Water and Electricity
The first earthquake left approximately 40 percent of the
residents of the capital without water supplies, and the
water supplied to other sections of the city was unprotected
by chlorination. This situation has improved marginally
since then, due to emergency repairs and to increased chlorin-
ation. In many smaller cities, the water supply and distri-
bution systems were partially destroyed, although the main
water sources and storage systems remain relatively intact.
Restoration and improvement of all of these systems will
require major effort.
Electricity in Guatemala City is back on. However, regional
transmission as well as local distribution of power service
to many localities in the interior has been and still is
disrupted.
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B. Economic Impact
1. Balance of Payments Effects
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Fortunately, Guatemala enjoyed a relatively strong balance
of payments position in 1975. Its net foreign exchange
reserves increased from the end of 1973 to the end of 1975
from $201 million to $280 million, a level equal to approxi-
mately four months of imports. Still too early to project
the effects of the earthquake on Guatemala's foreign exchange
position, it is clear the tourism income, which reached $70
million in foreign exchange earnings in 1975, will decline
and probably sharply. While, in the overall, hotels are
only slightly damaged, some suffered heavy damage. It will
be some time before prospective visitors regain confidence
and resume their travels to Guatemala.
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More importantly, the earthquake is expected to cause a
significant upsurge in imports, particularly of glass,
construction materials, and equipment. Some stocks of
manufactured goods will also have to be replaced. Guate-
mala's main foreign exchange earners other than tourism,
i.e., coffee, sugar, cotton, bananas and meat, have not been
affected, and almost all of its industrial production capac-
ity remains intact.
As its foreign debt service burden has been below 5 percent,
Guatemala therefore has the capacity to borrow substantially
to help finance its reconstruction and investment programs.
Heavy reliance on large commerical borrowings, however,
would increase debt servicing costs rapidly.
2. Budgetary Effects
The government's budgetary position, traditionally strong,
will certainly be adversely affected. Some reductions may
be expected in corporate and personal income tax collections
as affected businesses write off their losses. Most signif-
icant will be the effect of increased government expenditures
for relief, rehabilitation and reconstruction. The govern-
ment will be called upon to assist the rural and normally
poor municipalities in restoring the water supply and other
essential services and provide emergency assistance to the
homeless and medical assistance to the injured. Moreover,
credit for housing reconstruction will be needed for many of
the homeless. Unfortunately, these expenditures, either for
temporary or more permanent shelter, cannot be spread over a
number of years but will have to be concentrated within a
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relatively short period.
3. Effect on Prices
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Price stability has long been a characteristic of the Guate-
malan economy, but that changed in 1973 and 1974 when, as
did many countries, Guatemala, largely from external causes,
experienced serious effects from inflation. However, by the
end of 1975, price stability had significantly improved.
Strong inflationary pressures are expected, as an aftermath
of the disaster, in the area of construction and construction
materials. Demand is expected to exceed substantially
available productive capacity. Wages in the construction
industry are expected to rise sharply. As an offset, the
just completed harvests of corn, beans, and wheat were
relatively bountiful and can be expected to hold down price
increases in basic foodstuffs. However, large quantities of
grains were stored in and around homes and were partially
lost. This may cause some increases in food prices.
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4. Employment Effects
A number of businesses, closed temporarily until power was
restored and repairs were made, are now reopening. However,
many neighborhood shops and small businesses have been
completely destroyed. Tourism and arts and crafts, normally
an important source of employment, may be depressed for at
least some months. Moreover, with SO many homes destroyed
and material possessions lost, the arts and crafts industry,
largely a home industry, may suffer dislocation.
These adverse employment effects are expected to be of a
short-term nature. The intensive reconstruction effort will
provide additional jobs in the construction and construction
materials industries. The manufacturing industry, which
accounts for roughly 6 percent of the GNP, has not been
seriously affected, and most major commerical establishments
either have resumed, or soon will resume, operations.
In sum, the impact of the disaster on the balance of payments
budget, production, and employment is not expected to be
unmanageable. In human terms, however, the disaster is
truly a disaster. Hardest hit were the poor, those who can
least afford to lose their employment, homes, and possessions.
II. Disaster Relief
A. Immediate Response
1. Government of Guatemala
A national emergency was declared immediately after the
first earthquake. The military received and has exercised
extraordinary powers to deal with the immediate relief
problems. The government has invested, and is investing,
massive effort in clearing roads of landslide debris,
completing initial damage assessments and distributing
government food stocks. Price controls are being enforced
to prevent the exploitation of temporary shortages. Citizens
generally are contributing time and financing to help to
save lives and feed the most affected. Private sector
resources, whether channeled through the Guatemalan Red
Cross or other organizations or provided on an individual
basis, have played a significant role in speeding relief to
those affected by the earthquake. The mass of the popula-
tion is "cooperating" by its patience, and an almost stoical
capacity for suffering.
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The Guatemalan Government has formed a National Emergency
Committee to coordinate the government relief efforts and
the generous assistance being provided by the U.S. and other
donors. The coordination task is large, complex and contin-
uing. The improving communications system and the growing
experience of the government point toward the easing of the
coordination problem.
There have been but few reports of looting, with the govern-
ment moving quickly to deal with any reported problem.
During our visit we heard no complaints about diversion of
relief supplies.
2. United States Government
Within hours after the first quake, the U.S. country team in
Guatemala and A.I.D.'s Foreign Disaster Relief Center were
in operation on a 24-hour basis. Quickly, we began to move
in supplies, equipment, and personnel. Among the first
arrivals was a U.S. military Disaster Assistance Survey Team
(DAST) from Panama. This was followed quickly by a fully-
equipped and staffed 100-bed U.S. military field hospital
that is in operation in the center of the hardest-hit area -
Chimaltenango.
Subsequently, we provided a U.S. Engineering Survey Team to
assess damage to roads, bridges, and railroads; 18 large
helicopters; 8 two-man medical/communications teams to
assess needs and provide medical assistance in isolated
areas; and a considerable amount of tents, medical supplies,
field kitchens, generators, etc., from A.I.D.'s disaster
relief stockpile in Panama. Two medical officers from the
Communicable Disease Center in Atlanta and two U.S. Public
Health Service pharmacists are assisting the Guatemalans in
establishing systems to survey disease outbreaks and in
organizing the receipt, storage, and use of the large
quantities of donated medical supplies. We are also funding
the transportation costs for certain high-priority relief
shipments by voluntary agencies. Most of our efforts are
concentrated in the hardest-hit areas of the highlands
around Chimaltenango, for the Guatemalan Government has
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asked us to concentrate our resources on this area, which
was almost totally devastated.
As of February 14, we have allocated $3.6 million to this
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effort. The cost of relief over a 30 to 60-day period may
require up to $20 million, depending on the timing for the
phasing down of helicopter and field hospital use.
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3. Other Donors
(a) Third Country and International Organizations
Relief Assistance
Thus far, 24 nations other than the United States (and the
list is growing) have contributed to the relief effort.
Contributions are being made in cash, personnel, transport,
food and other commodities. I am attaching hereto a listing
of third-country assistance based on the information currently
available to us (TAB A).
International organizations are also responding to the needs
of the immediate relief phase. Their known contributions,
which already amount to over $3.6 million, are listed in
attachment TAB B.
(b) Voluntary Agencies
Voluntary agencies, such as CARE, Catholic Relief Services
(CRS), Caritas, the Salvation Army, the Red Cross, Seventh
Day Adventists, Partners of the Americas (Alabama), and a
host of others, including from other countries, have provided
and are providing generous and effective support as they put
to quick use long and practical experience in dealing with
disasters. There is no reliable estimate yet available of
the financial value of their assistance. A listing, based
on currently known information, is also attached (TAB C).
B. Post-Immediate Relief Phase
We are now at a time when immediate relief requirements are
moving into manageable proportions. Medical emergency needs
have been largely identified and satisfied, but certainly
not entirely, particularly in the more remote rural areas.
In-country stocks of medicines, bolstered by donations still
arriving, should be adequate to satisfy requirements, although
there may be specialized needs from time to time which
generally can be handled by other donors and private voluntary
organizations. The major hospitals in Guatemala City are
functioning well and are meeting the immediate needs for
medical and surgical care.
No signs of epidemics have appeared. The process of restoring
water services in rural towns, as well as in parts of Guatemala
City, is moving ahead rapidly with provision for proper
treatment of water supplies receiving high priority. Apart
from the need for a relatively minimal quantity of tools and
supplies in addition to the water storage tanks already
supplied by the U.S., completion of temporary repairs to
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water systems in the affected area should be possible without
significant further external relief requirements.
Water supply capacity in the capital is back to about 50
percent of pre-earthquake levels. Shortage of supply is of
lesser concern than is quality. The municipal water plants
are chlorinating the water being distributed, but damage to
the city's parallel water and sewage pipe systems has rendered
supply potentially unsafe. Attention is being given to this
problem by the government with assistance by the U.S. and
others. The monitoring by the health authorities of hospitals
and clinics is continuing in order to detect as quickly as
possible any emerging health problems.
The major continuing problem, for the short and long run, is
the need to provide adequate shelter to the many homeless.
Given the relatively modest aspirations of the rural popula-
tion, provisional needs increasingly are being met by the
government and several donors. However, additional new
inputs for this purpose are being considered by others.
Properly handled, temporary shelter solutions can form the
basis for rapidly resolving permanent housing needs through
self-help programs utilizing simple materials and tools.
Barring further major quakes, a reasonable degree of normal
economic activity and public services should be restored and
in place in all but the remote areas by the end of this
month or early March. An important factor bearing on this
process, however, will be the rapidity with which closed
roads are opened to permit access for the movement of food
and other commodities. While there is no possibility that
the main highway to Puerto Barrios can be opened within this
time frame, temporary bypass construction will be needed.
In-country equipment capacity should be sufficient to handle
general road clearing work, but preliminary surveys by the
U.S. Army Corps of Engineers of Atlantic highway damage
indicate that reopening of the highway will require a major
effort, expecially if the work called for along the fifty
miles primarily affected is to be completed by the advent of
the rainy season in mid-May and which normally continues
until November. Whether this operation, located in rugged,
difficult terrain, is within the country's capability must
await completion of the in-depth damage assessment by the
Corps of Engineers and a review of construction capacity now
being carried out by the Ministry of Public Works. Decisions
are expected shortly. Opening the road is obviously one of
the priority tasks. The government, with its own facilities,
hopes to be able to restore the railroad link before the
rainy season.
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Food stocks, augmented through foreign donations, should be
sufficient for the next few months. There will be continuing
difficulties, however, in ensuring adequate supplies in all
areas because of access problems.
III. Rehabilitation and Reconstruction
Even while the Guatemalans struggle to deal with the emergency
needs facing them, attention must be given, and is being
given, to the next phases, i.e., the shorter-run rehabilita-
tion task and the longer-run reconstruction task. There is
no clear line distinguishing between these phases, and they
are not necessarily successive in time sequence, as some
must proceed in planning and execution simultaneously.
Essentially, what is involved are decisions on policies and
actions for interim and long-term responses to the conse-
quences of the disaster.
After a relatively long period of slow economic growth,
Guatemala, in recent years, has begun to develop a national
network of public services with increased capacity to attend
to the development needs of the large mass of rural and
urban poor. The interruption caused by the earthquake in
this delayed process of spreading the benefits of develop-
ment to perhaps 80 percent of Guatemala's people poses not
only a humanitarian problem but a challenge of fundamental
importance to the future course of that nation. In recog-
nition of this fact, President Laugerud has announced that
it will be the policy of his government to continue overall
development efforts for the entire country, guided by the
1975-79 Development Plan. The necessary rehabilitation and
reconstruction efforts in the earthquake affected areas are
obviously of high priority, but this priority should desir-
ably not deter the government from its development efforts
to improve the quality of life of the poor Guatemalans.
The National Economic Planning Council is about to complete
an initial assessment of damage cost and economic impact
projections which will form the basis for more precise
estimates of external assistance needs and internal self-
help capacity. Major capital inputs will obviously be
required for housing, road repair, public infrastructure
(schools, medical centers and hospitals, water supply
systems, and public buildings), small business rehabili-
tation and communication facilities. Moreover, small farmer
productivity must be assured through effective and timely
provision of normal governmental and cooperative services
(credit, technical assistance, distribution of improved
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institutional infrastructure has been disrupted in the
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affected areas is not yet fully dotermined, but it is impor-
tant that it be in place and functioning within the next 6-8
weeks in anticipation of the May planting season. Obviously,
projections of future food import needs will be influenced
by how well the planting goes in the affected area which,
outside of Guatemala City, is largely populated by small,
subsistence-level farmers.
IV. Resources for Rehabilitation and Reconstruction
A. Guatemalan Self-Help Measures
The administration of President Laugerud has been distin-
guished by its dedication to accelerating programs with
impact in the long-neglected social areas. A competent
managerial team within his cabinet has pushed forward major
development projects, ranging from improved water supply to
greatly increased electric power that had begun, before the
disaster, to move Guatemala into the forefront of the
Central American countries in terms of growth. If, as we
hope, major economic activity quickly will be restored to
the pre-earthquake level and fiscal progress can be main-
tained and intensified to help carry the heavy burdens now
placed upon the population, Guatemala should be in a posi-
tion to help finance a major portion of the programs re-
quired to regain and surpass its pre-earthquake situation.
The Guatemalan authorities stress their recognition that the
foundation of Guatemala's recovery cum development thrust
will rest solidly on its own self-help measures. They
further recognize that external assistance will depend
heavily on demonstration of such self-help. It is too soon
to judge whether it will be possible for the government to
pursue fully recovery and development simultaneously.
Fortunately, as noted, at the time of the disaster, Guatemala
was in a relatively strong financial and economic situation
which can bolster the self-reliance underpinning of their
laudable approach. Some tradeoffs may be necessary, however.
A major question in the post-earthquake period situation is
the administrative and managerial capacity of Guatemalan
institutions to handle the increased burdens of a recon-
struction program. This is understandable because of the
burdens being placed on top of the normal ones already
associated with implementing an active and expanding develop-
ment program. Preliminary consideration is being given to
creating a special reconstruction entity. Such an entity
would have the responsibility and authority to plan and
direct the utilization of all resources destined for recon-
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that the entity would be in a position to hire or have
assigned to it top-notch, qualified personnel, thereby
avoiding the problem of overloading existing ministerial
staffs. Presumably, the new entity would also be granted
emergency powers, enabling it to bypass many of the Guate-
malan Government's present internal administrative proce-
dures, thus speeding up project implementation.
B. External Assistance
1. United States
Apart from immediate assistance provided to meet the initial
emergency and which will be phased down with the decreasing
need for such assistance, the question of further U.S.
assistance can be approached from two levels. The first
essentially involves reviewing existing loan and grant
projects to determine whether restructuring would be feasi-
ble. This examination is underway. Fortuitously, A.I.D.
recently (December 1975) had authorized a $13 million loan
for small farmer development which is directed at the
Highland Indian farmer. The Minister of Finance has indi-
cated that the Guatemalan Government wishes to sign the loan
agreement immediately. Our preliminary assessment is that
essentially no restructuring will be necessary to ensure
concentration of resources where needed. Also, the Govern-
ment of Guatemala and A.I.D. signed in November 1975 a $7
million rural primary education loan which included approx-
imately $4.2 million for up-grading school buildings pri-
marily in the Highland area. Some reorientation of prior-
ities in this program will likely be required in terms of
school site selection, but, essentially, this loan is
available to assist in the rehabilitation and reconstruction
effort. Also, additional U.S. Government support, through
the U.S. International Disaster Assistance Authority, for
the early rehabilitation effort is being considered, pending
further assessment of identified needs. The assessment is
already underway and will require continuing close coor-
dination with the government, other donor nations, and
international organizations. Only until we know more of the
nature and substance of the international and Guatemalan
Government's national response can we establish our own
priorities and clarify possible additional funding require-
ments.
U.S. voluntary agencies possess large capabilities, unique
to each voluntary agency, which can play an important role
in the rehabilitation phase. They are on the ground with
established delivery systems which can meet the needs of
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many disaster victims without further straining government
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capacity. We hope that this capacity will continue to be
utilized in the post-relief phases.
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Over the next months, we anticipate that the Guatemalan
Government's planning process will identify specific, longer-
run needs which could appropriately be met through A.I.D.
development loans and grants and which would clearly be
consistent with congressional mandate criteria for develop-
ment assistance. We should seek to be responsive within the
means that may be made available through the appropriation
process.
2. External Assistance from Other Sources
For the post-emergency relief phase, I believe that the
major burden of external assistance can be carried by the
multilateral agencies, particularly the International Bank
for Reconstruction and Development (IBRD) and the Inter-
American Development Bank (IDB). The major requirements for
shelter and urban reconstruction, generally, as well as more
permanent restoration of infrastructure (roads, bridges,
railroads, and ports), may well find substantial financing
through these multilateral channels to supplement Guatemalan
resources. It is interesting to note that only last month
the Inter-American Development Bank provided $135 million in
loans for Guatemala (more than that country has had in total
during the previous fifteen years of the Bank's existence).
Portions of these may be redirected as a result of the
disaster. Both financial institutions are already planning
their active involvement. An IDB team has already been to
Guatemala and a World Bank team is being dispatched shortly.
3. Coordination
Leadership in the coordination of the rehabilitation and
reconstruction efforts has to come from the Guatemalans.
They know it. With the support of ourselves and the many
others interested in helping Guatemala, they can well perform
the task. We anticipate that a consultative arrangement
among donors and lenders will develop to insure a maximum,
coordinated effort.
V. Contingency Planning for Possible Future Disasters
Even now, the Government of Guatemala must significantly
strengthen its contingency planning for future disasters.
Regrettably, the possibility cannot be ruled out that Guate-
mala, much of which is located along the long east-west
Motaqua Fault, may still face other quakes.
The U.S. Government can provide technical assistance to
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Guatemala lay out the various options it may have for
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responding to any future natural disasters. We feel that
more can be done to help the Guatemalan Government not to be
taken by total surprise in the event of another major disaster.
For example, United States Geologic Survey Geologists are
now monitoring the tensions of the fault line which runs
near Guatemala City. The tension has not yet abated fully
and, with sophisticated monitoring devices, we may be able
to provide the Guatemalan Government with some forewarning
of another major earthquake.
Because the terrain of this country has changed significantly
in some areas, we are alerting the Guatemalan Government to
the concern that flooding of abnormal proportions may occur
this year. Members of the U.S. Army Engineering Survey Team
are making assessments of some possible waterways that may
cause flooding damage to the already-disrupted major highway
to the sea.
Mr. President, the government and the people of Guatemala
have responded well to the aftermath of the disaster.
Certainly, there were and, indeed are, problems of coor-
dination and maximum effective use of domestic and foreign
resources; but the consensus of experienced observers is
that the Guatemalan effort, given the enormity of its tasks,
has responded well. They merit the continuing help from the
United States and others.
President Laugerud asked that I convey to you, on behalf of
himself and his people, the deepest appreciation for your
personal interest and support. He stressed that it was not
only the important technical and material assistance being
provided by the U.S. Government and people but also the
moral encouragement and bolstering derived by his government
and the Guatemalan people from the spirit and timeliness of
that support. He emphasized, too, his recognition that
Guatemala itself must bear the major burden of the present
and continuing costs of the disaster and that the nature and
extent of its self-help measures will help determine the
nature and extent of external support.
I wish also to commend to you all elements of the U.S.
country team. Under the active leadership of Ambassador
Meloy, they continue to devote themselves on a round-the-
clock basis. I believe all the people of the United States
may be proud of the U.S. role in helping the Guatemalan
people in the traumatic aftermath of a major disaster.
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While many other nations and organizations responded quickly
with supplies and personnel, the U.S. response, both public
and private, was critical in averting a serious worsening of
the crisis.
In making the trip to Guatemala, I was joined by two con-
gressional staff members, Ms. Herschelle Challenor of the
House International Relations Subcommittee on International
Resources, Food and Energy, and Mr. Richard McCall legis-
lative assistant to Senator Gale McGee, Chairman, Senate
Foreign Relations Subcommittee on Western Hemisphere Affairs.
I am grateful for their participation. Mr. Herman Kleine,
my Assistant Administrator for Latin America, and Major
Marshall N. Carter, USMC, a White House Fellow serving as my
special assistant, also accompanied me. Their support is
greatly appreciated.
DanilButh
Daniel Parker
Attachments:
A - Third Country Donor Assistance
B - International Organizations Assistance
C - Voluntary Agency Assistance
GERALD ? LIBRARY FORD
is Scowerft
The White House
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ICS IPMBNGZ CSP
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PMS PRESIDENT GERALD FORD, REPORT DELIVERY BY MAILGRAM, DLR
WHITE HOUSE
FEB 25 PM
WASHINGTON DC
MAIL RODI
BSACK TM
DENNIS MORROW AND ASSOCIATES REPRESENT FOUR SEPARATE COMPANIES WHO
SELL EMERGENCY FOOD AND MEDICAL SUPPLIES. AFTER SPENDING
37
CONSIDERABLE TIME EFFORT AND MONEY, WE FEEL YOUR ADMINISTRATION HAS
DISCRIMINATED AGAINST, AND BLOCKED, OUR ATTEMPTS TO ASSIST IN THE
GUATEMALA EMERGENCY. THE GUATEMALA EMERGENCY DESK, STAFFED BY MRS
WORSLEY OF THE STATE DEPARTMENT AND THE DIRECTOR OF ECONOMIC
AFFAIRS, US EMBASSY IN GUATEMALA, MR FULLER, REFUSED TO RECIEVE OUR
PERSONAL REPRESENTATIVE, ATTORNEY DENNIS MORROW, NOW IN GUATEMALA,
IN ORDER THAT HE MAY BE ALLOWED TO SUBMIT OUR FIRMS' PROPOSALS AND
ASSISTANCE ON AN EQUAL BASIS, WITH OTHER AMERICAN AND INTERNATIONAL
COMPANIES. THIS IS NEGLECTING THE GUATEMALA PEOPLE IN THE
OUTREACHING COUNTRYSIDES OF GUATEMALA. WE REALIZE THE CAPITOL CITY
IS WELL ON THE WAY TO RECOVERY. MR FULLER'S ATTITUDE REFLECTS THE US
EMBASSY AND YOUR ADMINISTRATION COULDN'T CARE LESS ON WHAT HAPPENS
TO THE NATIVES OF THE COUNTRYSIDE.
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MR FULLER REFUSED TO GIVE MR MORROW A PROPER AUDIENCE OR TO
INTRODUCE MR MORROW TO THE DECISION MAKING COMMITTEES.
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IT APPEARS THAT MRS WORSLEY AND MR FULLER ARE ONLY DOING BUSINESS
WITH VERY HIGH POLITICAL, INFLUENTIAL AND SPECIAL INTEREST GROUPS.
FORM
AS A LAST RECOURSE, WE REQUEST YOU TO INITIATE AN INVESTIGATION AS
GOVERNMENT FINANCED PROGRAMS, SUCH AS THE GUATEMALA EMERGENCY.
JOHN BIRD
MORROW ASSOCIATES
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