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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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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 LIBRARY 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. GERALD LIBRARY S 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) GERALD LIBRARY S 5 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 ? GERALD Lionahy 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 6 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. GERALD R LIBRARY FORD 2 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. GERALD LIBRARY 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. - 2 - 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 FORD one hospital's response capability within 27 minutes after & the quake. This self-initiated individual type of response quickly GERALD LIBRARY 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. - 3 - 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. FORD & 2. Infrastructure GERALD LIBRARY (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. FORD & B. Economic Impact 1. Balance of Payments Effects GERALD LIBRARY 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. - 5 - 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 FORD & relatively short period. 3. Effect on Prices GERALD LIBRARY 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. - 6 - 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. FORD a GERALD LIBRARY - 7 - 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 FORD & 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 GERALD LIBRARY 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. - 8 - 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 FORD & GERALD LIBRARY - 9 - 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. FORD A. GERALD - 10 - 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 FORD seeds and fertilizers, etc.). The extent to which this & institutional infrastructure has been disrupted in the GERALD LIBRARY - 11 - 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- FORD struction. An important benefit of this approach would be ? GERALD LIBRARY - 12 - 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 FORD many disaster victims without further straining government ? capacity. We hope that this capacity will continue to be utilized in the post-relief phases. GERALD LIBRARY - 13 - 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 FORD & the Guatemalans for contingency planning. We plan to help Guatemala lay out the various options it may have for GERALD LIBRARY - 14 - 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. FORD ? GERALD LIBRARY - 15 - 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 WPD016 552P EST FEB 24 76 WAC365(1746)(2-046773E055)PD 02/24/76 @ ICS IPMBNGZ CSP 1976 FEB 24 PM 5 59 8175891441 TDBN FORT WORTH TX 222 02-24 0546P EST 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. FORD MR FULLER REFUSED TO GIVE MR MORROW A PROPER AUDIENCE OR TO INTRODUCE MR MORROW TO THE DECISION MAKING COMMITTEES. GERALD LIBRARY 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 4028 DALEY SUITE 104 FORT WORTH TEXAS 76118 8175891441 8172684564 NNNN GERALD R LIBRARY FORD

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    "ocrText": "The original documents are located in Box 3, folder \"Guatemala - Earthquake (3)\" of the\nNational Security Adviser. NSC Latin American Affairs Staff: Files for Latin America at\nthe Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\n1151\nLow\nFYI It\nNATIONAL SECURITY COUNCIL\nWASHINGTON, D.C. 20506\nMarch 3, 1976\nF\nMEMORANDUM FOR: Mr. George S. Springsteen\nExecutive Secretary\nDepartment of State\nof but\nSUBJECT:\nS. Res. 390 Concerning Guatemala\nOn February 17, 1976, the Senate adopted S. Res. 390 in support of\nassistance to the people of Guatemala in the aftermath of the recent\nearthquakes. We request that you transmit a copy of this resolution\nto the Government of Guatemala in accordance with Section 3 of the\nResolution.\nMike Hounday\nJeanne W. Davis\nfor\nStaff Secretary\nGERALD ? FORD\nstaff\n4\nMEMORANDUM\nTHE WHITE HOUSE\n1151\nWASHINGTON\nFebruary 23, 1976\nMEMORANDUM FOR:\nBRENT SCOW CROFT\nFROM:\nBOB LINDER Lind\nAttached is a copy of S. Res. 390, transmitted to the President\nby a letter from the Secretary of the Senate. I am forwarding these\nitems to you for appropriate handling in accordance with Section 3\nof the resolution.\nAttachment\nFORD LIBRARY & OERALO\nFRANCIS R. VALEO\nSECRETARY\nUNITED STATES SENATE\nWASHINGTON\nFebruary 19, 1976.\nMind\nl\nThe President,\nThe White House,\nWashington, D. C.\nDear Mr. President:\nI am forwarding herewith,\nfor your interest, a copy of Senate Resolution\n390. adopted by the Senate on February 17, 1976.\nRespectfully yours,\n7- R. Vales\nFrancis R. Valeo,\nSecretary of the Senate.\nEnclosure:\nS. Res. 390.\nGERALD\nBRARY\nS. Res. 390\nIn the Senate of the United States,\nFebruary 17, 1976.\nWhereas the people of our sister Republic, Guatemala, suffered\na devastating blow as the result of the recent earthquakes and\ntremors in February 1976; and\nWhereas these quakes and tremors caused the loss of thousands of\nlives and the destruction or devastation of many towns and\nvillages, rendering homeless many thousands of people; and\nWhereas the people and Government of the United States, in\naccord with the traditions of the United States, are anxious to\nassist the people of Guatemala in their tragic hour of bereave-\nment and suffering; and\nWhereas the task of relief, rehabilitation, and reconstruction\nwhich faces Guatemala is huge, requiring outside support and\nassistance beyond the present emergency requirements:\nNow, therefore, be it\nResolved, That the Senate extend its deepest sympathy to the\nPresident and to the people of Guatemala in this dark hour of\ntheir suffering and distress.\nFORD\nSEC. 2. It is the sense of the Senate that the executive branch\n?\nGERALD\nLIBRARY\nof the United States Government be urged to develop, in coopera-\ntion with other potential donors in and outside of the Western\n2\nHemisphere, both governmental and private, programs to assist\nthe people of Guatemala in their efforts to relieve the suffering\ncaused by the disaster and to rehabilitate their nation from the\ndamage inflicted.\nSEC. 3. Copies of the present resolution shall be distributed\nthrough appropriate channels to the President of Guatemala.\nAttest:\n7 R. Valeo\nSecretary.\nGERALD a FORD LIBRARY\nCalendar No.\nfite carthgorhy Quatim 2\n94TH CONGRESS\nSENATE\nREPORT\n2d Session\nNo. 94-679\nGUATEMALA RELIEF AND REHABILITATION ACT\nOF 1976\nMARCH 3, 1976.-Ordered to be printed\nMr. HUMPHREY, from the Committee on Foreign Relations,\nsubmitted the following\nREPORT\n[To accompany S. 3056]\nThe Committee on Foreign Relations, to which was referred the\nbill (S. 3056) to amend the Foreign Assistance Act of 1961 to provide\nemergency relief, rehabilitation, and humanitarian assistance to the\npeople who have been victimized by the recent earthquakes in Guate-\nmala, having considered the same, reports favorably thereon with an\namendment and recommends that the bill (as amended) do pass.\nPURPOSE OF THE BILL\nThe purpose of the bill is to authorize the appropriation of $25\nmillion to provide relief and rehabilitation assistance to the people\nof Guatemala who were victims of the earthquakes which occurred in\nthat nation in February, 1976.\nSUMMARY OF THE MAJOR PROVISIONS IN S. 3056\n1. Authorization of Appropriations: The bill authorizes appropria-\ntion of $25 million for relief and rehabilitation activities in Guate-\nmala. The appropriations are authorized for the fiscal year 1976 and to\nremain available until expended.\n2. The assistance is to be provided subject to the policy and general\nauthority of section 491 of the Foreign Assistance Act of 1961 as\namended.\n3. Funds authorized by this bill may be used to reimburse appro-\npriation accounts from which initial relief funds were drawn, but may\nnot otherwise be transferred.\nFORD\n?\n57-010\nGERALD\nLIBRARY\n2\n3\n4. The bill directs that to the maximum extent practicable assist-\nance is to be distributed through United States voluntary relief agen-\nby the Subcommittee on Foreign Assistance on February 27 and by\ncies and other international relief and development organizations.\nthe full committee, also by voice vote, on March 2.\n5. The bill requires a quarterly report to Congress on the program-\nCOMMITTEE COMMENTS\nming and obligation of funds provided under its authority.\nThe Committee on Foreign Relations believes it desirable and ap-\nBACKGROUND AND COMMITTEE ACTION\npropriate that the United States provide assistance in the amount\nOn the morning of February 4, 1976, a major earthquake, 7.5 on the\nrequested to help the victims of the Guatemala earthquake. Moreover,\nRichter scale, struck Guatemala leaving more than 22,000 dead, 76,000\nthe committee believes it of great importance that legislative action\ninjured and a million homeless. An estimated 20 percent of the people\non this request be completed at the earliest possible time. Unless the\nof Guatemala were directly affected by the first tremor and its after-\nrehabilitation of homes, community facilities and roads is well under-\nshocks.\nway by the beginning of the rainy season in May, the suffering of the\nThe burden of the disaster fell hardest on the rural and urban poor\npeople of Guatemala will be greatly compounded.\nwhose adobe homes and poorly constructed shanties collapsed, often\nWhile urging the prompt enactment of this legislation the com-\nmittee is nevertheless aware that it has less information than it would\nburying families in their sleep. In addition to the individual human\nlike to have concerning the uses which will be made of the funds to\ntragedies, the earthquake caused severe damage to the main highway\nfrom Guatemala City to Puerto Barrios, a road over which a substan-\nbe authorized in this bill. The President's message requesting funds\ntial portion of the commerce of the nation travels. Water supplies, hos-\nfor relief and rehabilitation in Guatemala provided only a brief out-\npitals, schools and other community facilities were also damaged in\nline of the projected uses of these funds.\nvillages, towns and cities throughout a large area of the country.\nRepeated requests to the Agency for International Development\nhave elicited little additional detail. In all likelihood such information\nThe Government of Guatemala, the U.S. Government, the govern-\nis simply not available at this time and the committee recognizes the\nments of 25 other nations, several international organizations, and nu-\nmerous voluntary agencies responded to the needs of the people of\nproblems involved in formulating definitive plans for relief and re-\nhabilitation efforts in the immediate aftermath of a disaster of this\nGuatemala in the immediate aftermath of the earthquake. The U.S.\nmagnitude.\nGovernment dispatched medical and other specialized personnel, med-\nGiven the importance which the committee attaches to the prompt\nicine, food, temporary shelter, transport vehicles, including helicop-\npursuit of relief and rehabilitation activities in Guatemala it decided\nters, and other supplies needed to assist the injured, identify damage,\nnot to delay this legislation until detailed plans were available for\nand provide the necessities of life to people affected by the earthquake.\nreview. At the same time, however, the committee wishes to express\nThe Agency for International Development reports that approxi-\nits view that the funds authorized should be spent in close conformity\nmately $7.5 million has been obligated or programmed for these ini-\nwith the purposes and intent described in the President's Message and\ntial relief and rehabilitation efforts. Emergency relief operations are\nin the testimony and communications to the committee of Mr. Daniel\nnow beginning to phase down and rehabilitation efforts are expected to\nParker, Administrator of the Agency for International Development.\ncommence as soon as possible.\nIn his testimony before the subcommittee, Mr. Parker stated that\nOn February 19, 1976, the Senate received a message from the Presi-\ndent (Appendix I) requesting $25 million for the relief and rehabilita-\nthe heaviest burden of the disaster fell on the poor, especially the rural\ntion of the victims of the earthquake in Guatemala. A subsequent\npoor. As outlined in the President's message a substantial portion of\nthe assistance provided in this act would be used for direct assistance\nExecutive Branch communication (Appendix II) included an outline\nof the proposed uses for the funds requested. This communication also\nto the rural and urban poor whose homes and community facilities\nnoted that to be effective, additional relief and rehabilitation efforts,\nwere damaged or destroyed. The committee agrees with this intention.\nparticularly housing reconstruction and road repair should be com-\nThe committee emphasizes that it is recommending authority to\nprovide assistance for relief and rehabilitation. These funds are not\npleted before the rainy season begins in May. Earlier, on February 16,\nthe Subcommittee on Western Hemisphere Affairs and the Subcom-\nto be used as a supplement or addition to economic development pro-\ngrams or activities authorized under other sections of the Foreign\nmittee on Foreign Assistance jointly had received testimony on the\nAssistance Act.\nsituation in Guatemala from Daniel Parker, Administrator of the\nThe committee has taken note of reports that, in the past, funds in-\nAgency for International Development.\nThe administration bill was introduced by Senator Sparkman, by\ntended for direct assistance to people affected by disasters have been\nrequest, as S. 3044 on February 25. The following day Senator Hum-\nused to procure and provide to host governments expensive capital\nphrey, for himself and Senator Kennedy introduced S. 3056. The latter\nequipment of questionable value to those who were bearing the greatest\nbill was considered and approved with an amendment by voice vote\nburden of the disaster. Funds authorized to be appropriated under\nthis act must not be used to provide such equipment. The committee\nunderstands that the transfer to the Government of Guatemala of\nS.R. 679\nS.R. 679\n4\n5\nsome equipment used for road construction or medical purposes may\ntherefore, urges the executive branch to give favorable consideration\nbe desirable, but the committee would not expect other transfers, and\nto participation with other nations in meeting the appeal of the\ncertainly not any significant deviation from these understandings,\nUNHCR.\nwithout prior consultation.\nThe committee is also aware of the relief work now being carried out\nThe committee has noted reports of the effective response of U.S.\nin Lebanon by the International Committee of the Red Cross and by\nand other voluntary organizations to the needs of the victims of the\nthe American University of Beirut Hospital. The executive branch\nearthquake in Guatemala. The committee calls attention to its intent\nhas provided support for this work in the past and should continue to\nthat to the maximum extent practicable assistance be distributed\ngive it favorable consideration. Other private and voluntary organiza-\nthrough the United States and inter-American voluntary agencies.\ntions have issued special appeals. The committee hopes that each of\nThe draft bill for Guatemala relief submitted by the executive\nthese will be given separate consideration on its own merits.\nbranch would have created independent statutory authority for these\nThere are a number of sources from which the executive branch can\nactivities. The committee did not agree with this procedure, preferring\nfund assistance for Lebanon without new legislative action. Subsec-\ninstead to place these activities under title I of the Foreign Assistance\ntion 495A(f), which would be added to the Foreign Assistance Act\nAct of 1961, as amended. This new section of the act was created by\nby this bill, gives the executive branch the authority to transfer valid\nthe International Development and Food Assistance Act of 1975\ncharges for Guatemala relief from the general disaster relief account\nspecifically to provide a consolidated coherent body of legislation on\nto the special Guatemala disaster relief account authorized by sub-\ndisaster relief and assistance. At the time that 1975 act was under\nsection 495A (c). Based on existing obligations in the disaster relief\nconsideration, the Administrator of AID himself wrote the committee\naccount, and assuming the account is fully funded for the fiscal year\nexpressing the executive branch view that \"it is preferable to include\n1976, the approval of this authority would make adequate funds avail-\nlegislation on international disaster relief assistance in the basic\nable for disaster relief in Lebanon during the fiscal year 1976. The\nForeign Assistance Act, rather than as a separate law.\" The committee\ncommittee also notes that the legislative history of the contingency\naction is consistent with that view.\nfund, section 451 of the Foreign Assistance Act of 1961, as amended,\nRelief Assistance to Lebanon\nmakes it clear that the contingency fund may be used for famine and\ndisaster assistance such as that needed in Lebanon, as well as other\nThe committee has recently received various proposals to provide\ncontingencies. In the case of both the contingency fund and the regu-\nemergency relief and rehabilitation to the people of Lebanon. An\nlar disaster account, funds provided for the transition quarter could\namendment submitted to the committee by Senator Abourezk proposed\nbe added to fiscal year 1976 funds to meet needs during the current\nsuch assistance to Lebanon as a part of the present Guatemala relief\ncalendar year.\nlegislation.\nThe committee urges the executive branch to consider all of these\nThe need for such assistance is recognized following the civil strife\nsources of possible funding, as well as emergency food supplies avail-\nwhich has devastated Beirut and other cities and villages throughout\nable under Public Law 480, as it evaluates appeals from the UNHCR\nLebanon. This struggle has left thousands wounded, homeless or in\nan other worthy international agencies and private and voluntary or-\nless than adequate shelter. Many more, especially children, are sick and\nganizations. If appropriate, direct appeals from the Government of\nhungry.\nLebanon could be considered, but the committee feels that contribu-\nThe United Nations High Commissioner for Refugees (UNHCR)\ntions and distributions must be made on a non-ideological, non-\nhas recently issued a special appeal for $50 million for emergency\npolitical basis to the people of both religious communities who have\nrelief programs in Lebanon to be administered by the UNHCR and\nsuffered from the war. U.S. assistance must be used only for the\nother UN agencies during calendar year 1976. The committee has been\nadvised that the portion administered by the UNHCR (approximately\nsupport of programs which are administered in such a way that\n$25.5 million) would be used to repair housing and replace minimal\ndistribution is not controlled by or channeled through political fac-\nessential household equipment such as blankets, clothing, and mat-\ntions on outside forces such as the Palestine Liberation Army or other\ntresses, and for medical supplies. Another portion, about $14 million\ngroups under non-Lebanese control. The committee strongly favors\nwould be used by the United Nations Children's Fund (UNICEF)\nthe use of the UNHCR and selected voluntary agencies as the vehicles\nfor maternal and child feeding. Approximately $5 million would be\nfor the distribution of the U.S. relief support.\nfor health services and medical supplies administered by the World\nThe committee expects the executive branch to report to the com-\nHealth Organization, and about $500,000 would be administered\nmittee not later than May 1, 1976, on its action to carry out a program\nthrough UNRWA, with the remaining $5 million to cover administra-\nof assistance to the people of Lebanon, SO that the committee may\ntion costs.\nconsider the progress of such a program and a projection of further\nThe committee notes that the United States has already obligated\nemergency aid before final Senate action on a fiscal year 1977 foreign\n$959,805 from existing disaster relief funds to aid the people affected\nassistance bill.\nby this man-made disaster. But much more is needed. The committee,\nS.R. 679\nS.R. 679\n6\nCOST ESTIMATE\nSection 252 (a) (1) of the Legislative Reorganization Act of 1972\nrequires that committee reports on bills and joint resolutions contain:\n(a) An estimate made by such committee of the costs which would\nbe incurred in carrying out such a bill or joint resolution in the fiscal\nAPPENDIX I-PRESIDENT'S MESSAGE\nyear in which it is reported and in each of the five fiscal years fol-\nlowing such fiscal year.\nTo the Congress of the United States:\nThe committee estimates that the cost of implementing this bill will\nOn February 4th a devastating earthquake struck Guatemala. That\nbe approximately as follows:\nearthquake, together with its aftershocks, has left over 22,000 dead,\nFiscal period:\nOutlays in millions\nmore than 75,000 injured, and one million homeless.\n1976\n$14\nThe United States has a special responsibility to help meet the\nTransition quarter\n5\nurgent needs in Guatemala. Immediate aid has already been extended\n1977\n6\nby U.S. agencies, both public and private, including:\n-Emergency shelters, medical supplies and food provided by the\nAgency for International Development.\n-Transportation and medical facilities provided by the Depart-\nment of Defense.\n-Food distribution, medical services, and other disaster relief ac-\ntivities provided by numerous private voluntary agencies.\nLast week I dispatched my Special Coordinator for International\nDisaster Assistance-AID Administrator Daniel Parker-to Guate-\nmala for a firsthand review of the situation. He has now reported to\nme and to Congressal Committees on the extent of damage and need.\nBoth the Senate and the House of Representatives have passed resolu-\ntions expressing sympathy for the people of Guatemala in their hour\nof distress and urging development of a comprehensive U.S. response.\nThe Secretary of State will visit the Republic of Guatemala on Feb-\nruary 24 to express further our support for the people of Guatemala.\nI am now proposing urgent and specific action to turn these expres-\nsions of sympathy into tangible assistance. The proposed $25 million\n\"Guatemala Disaster Relief Act of 1976\" which I am sending herewith\nrepresents an immediate humanitarian response of the United States\nto the victims of this tragedy who have been injured or have lost their\nrelatives, their homes and possessions, and in many cases their very\nmeans of existence.\nThis legislation, and the ensuing appropriation, will enable us to\nrespond to the human tragedy in Guatemala. Our response will reflect\nAmerica's concern for the people of Guatemala.\nGERALD R. FORD.\nTHE WHITE HOUSE, February 19, 1976.\n(7)\nS.R. 679\nS.R. 679\n9\nof Guatemala was to dispatch a U.S. Military Disaster Assistance\nSurvey Team from Panama and airlift a 100-bed U.S. military field\nhospital, fully staffed and equipped. Eighteen helicopters were de-\nployed; medical supplies, tents, blankets and water equipment from\nU.S. disaster stocks followed. Additional teams of engineers, water\nAPPENDIX II-AID PROPOSALS\nspecialists and medical/communication specialists were also sent to\nGuatemala to assist the Government.\nDEPARTMENT OF STATE,\nThe funds cover the continuing costs of initial emergency relief\nAGENCY FOR INTERNATIONAL DEVELOPMENT,\noperations provided by the Department of Defense, other participat-\nWashington, February 19, 1976.\ning U.S. agencies, procurement of supplies, transportation, grants to\nHon. NELSON ROCKEFELLER,\nU.S. Voluntary Agencies, the OAS, replacement of disaster stocks in\nPresident, U.S. Senate,\nPanama and other support costs. The actual level of expenditure will\nWashington, D.C.\ndepend on the duration of the emergency phase, and particularly on\nDEAR MR. PRESIDENT: It is my honor to forward herewith explana-\nthe timing of withdrawal of the helicopters, and medical support.\ntory material entitled \"Proposed U.S. Relief and Rehabilitation of the\nVictims of the Guatemala Disaster.\" This material has been prepared\n(B) RURAL REHABILITATION ($7.5 MILLION)\nin order to assist the Congress in the consideration of the proposed\nGuatemala Disaster Relief Act of 1976 transmitted by Presidential\n1. Shelter\nmessage on February 19, 1976.\nFunds would be allocated to supply critically needed supplementary\nProposed U.S. assistance would be concentrated on the immediate\nbuilding construction materials and hand tools for up to 100,000 units\nneeds of the poor in Guatemala who have borne the brunt of this\nof rural and small community housing in the devastated Indian high-\nhuman tragedy in terms of death, injury, disease and economic loss.\nlands. The uniqueness of this disaster was its effect on the rural poor\nThe construction of temporary shelter and reopening of key trans-\nwho because of the very nature of construction of their dwellings\nportation arteries are vital first steps. After completing a first hand\nwere singled out as the major victims of the earthquakes. The Gov-\nreview of the situation in the field at the President's request, I can\nernment of Gatemala estimates that more than 150,000 such dwellings\nassure you that that human suffering in Guatemala is serious and\nwere lost in the earthquakes and subsequent tremors, in addition to\ndeserves the urgent consideration of the Congress.\nmore than 100,000 urban dwellings. We expect that roughly 1/3 of the\nSincerely,\nrural needs will be rebuilt through individual and direct GOG and\nDANIEL PARKER.\nother donor assistance. To meet the balance of this requirement, and\nEnclosure.\nin support of self-help efforts, simple materials and tools that can be\npurchased locally or in nearby countries or, as necessary, shipped\nPROPOSED U.S. RELIEF AND REHABILITATION OF THE VICTIMS OF THE\nfrom the United States will be employed. We contemplate as was\nGUATEMALAN DISASTER\ndone in response to Hurricane Fifi in Honduras with considerable\nefficiency and economy, a grant-funded program executed through key\nThe total amount requested will permit AID to continue participa-\nprivate voluntary agencies such as CARE, wherein small farmers and\ntion, in close collaboration with the Government of Guatemala and\nthe rural poor in general will be provided relatively inexpensive roof-\nother donors, to help meet the highest priority immediate relief and\ning materials (e.g., galvanized tin and asbestos composition corrugated\nrehabilitation needs. In addition to the ongoing emergency relief oper-\nsheets), hammers, saws, chisels, nails, reinforcing bars, simple hard-\nations, our proposed input literally is geared to helping Guatemala to\nware, etc., and limited technical help. Involvement of existing co-\nwin a race against the elements-with an eye on the rainy season which\noperative organizations in the Indian highlands also will be stressed.\nnormally begins in approximately 90 days. So as to minimize further\nExperience in similar situatións has shown that the bulk of such re-\nsuffering and additional major economic dislocation, at the request of\nconstruction is carried out by the families involved. In fact, the proc-\nthe Government of Guatemala and based on continuing assessment in\ness of clearing necessary sites and sorting out materials already has\nthe field, we will concentrate assistance over the coming few months\nbegun. Attention to farming and other economic activity typically\nprimarily on helping to insure adequate temporary shelter with sup-\ntakes second place to providing shelter for the surviving family, mak-\nporting community facilities and on reopening critical transportation\ning this activity not only an essential element of social rehabilitation,\nlinks, especially the badly damaged Guatemala City-Caribbean High-\nbut of economic import as well.\nway, the main artery essential to the country's economic viability.\nBenefits of research sponsored by AID since the 1970 earthquake in\nPeru will be applied, to the extent possible, in improving seismic re-\n(B) EMERGENCY RELEF OPERATIONS ($7.5 MILLION)\nsistance of basically adobe construction. With minimal cost increases,\nThe initial response of the U.S. Country Team in Guatemala and\nit is hoped that the affected families, with the direct help of the in-\nAID's Foreign Disaster Relief Center to requests of the Government\nvolved PVO's and cooperatives, will by the onset of the rainy season\n(8)\nS.R. 679\nS.R. 679\n11\n10\n(D) OTHER URGENT ENGINEERING AND CONSTRUCTION REQUIREMENTS\nbe sheltered in conditions that are sufficiently comfortable and secure\n($2.5 MILLION)\nto restore to them at least a semblance of the life-hard as it has al-\nways been-they knew prior to February 4. Roofing materials to be\nBased on the results of high altitude aerial reconnaissance, danger-\nsupplied will be of a kind that will limit the extent of personal injury\nous topographical changes appear to have developed in various parts\nin any future earthquakes (as compared to titles commonly used) and\nof the earthquake-affected area. Possible flooding from the rupture of\nalso will be useable in more permanent construction.\nnaturally-formed dams as water accumulation occurs, particularly\n2. Supporting Community Facilities\nafter the onset of the rainy season, could cause severe additional loss\nTo the extent complementary, relatively simple construction needs\nof life and physical damage if not corrected opportunely. Specialists\ncan be met quickly and economically, assistance also will be extended\nin dealing with the difficult engineering and demolition problems en-\ntailed and other assistance as necessary, beyond that which is avail-\nto restore a minimum of vital community services (small farmer mar-\nkets, schools, slaughtering facilities, health posts, etc.) to permit com-\nable and can be financed in-country, will be provided.\nmunities to continue their traditional role as providers of social stabil-\nSummary\nity and cohesion in the Indian areas. In all cases, such assistance will\nImmediate relief efforts, complemented by the undertakings listed\nbe limited to keeping communities socially and economically viable\nabove, represent a basic, necessary and immediate response to pressing\nuntil broader, more durable, public services can be restored. In this\nhumanitarian and economic needs felt by the Government of Guate-\neffort, close coordination will exist with the GOG's Municipal Devel-\nmala and confirmed by our field assessments. They are essential to re-\nopment Institute (INFOM), with which AID has had a long and\nstoring near-normal life in Guatemala and to recapturing the momen-\nsuccessful relationship in Guatemala.\ntum of development progress which, under the administration of\nAs needed and requested by voluntary agencies with known com-\nPresident Laugerud, had only recently begun to move the large mass\npetence, funds will be made available to support Guatemalan Govern-\nof Guatemala's urban and rural poor closer to enjoying the benefits\nment efforts in relieving the social trauma of victims.\nof growth.\nSome shifts in the application of requested funds may prove neces-\n(C) TRANSPORTATION LINKS, INCLUDING RESTORATION OF THE GUATEMALA\nsary as assessments of needs and costs continue to be refined and as the\nCITY-CARIBBEAN HIGHWAY ($7.5 MILLION)\nfinancial capacity of the Guatemalan Government itself and assistance\nfrom other donors can be better identified.\nBased on a careful survey just completed by an 11-man U.S. Army\nIn this connection, AID will remain alert to ways of applying funds\nCorps of Engineers detachment, it now appears that in a period of 60-\nnot only SO as to meet pressing shelter and vital communications prob-\n75 days (before the rainy season makes such work difficult, if not im-\nlems in the short run, but to facilitating as well, by community and\npossible), the immediate phase of restoring Guatemala's principal ex-\ncooperative action especially suitable in the Indian highlands of Gua-\nport and import link with the rest of the world can be accomplished.\ntemala, broader participation in the very process as well as the bene-\nThe road must be made passable for the thousands of trucks and\nfits of development.\nbuses which normally transit this highway, now interrupted by a\nTime has now become the major opponent in the continued support\nbridges. stretch of approximately 50 miles of severe slides and destroyed\nof our Government and people to Guatemala. If the assistance pro-\nposed herein can be made available immediately, essential work can\nIf this work can be accomplished, as proposed, using the services of\nbe completed before the onset of the rainy season, SO alleviating addi-\nthe U.S. Army Corps of Engineers, or other emergency help that can\ntional anguish for a burdened people.\nbe mobilized immediately, it is expected that the Guatemalan Govern-\nment will be able to provide the maintenance capability to keep the\nroad open during the rainy season. In the meantime, there are indica-\ntions that international financing should be available for the major\njob of permanent reconstruction that cannot begin until later in the\nyear when the detailed engineering and weather conditions would per-\nmit this major operation to get underway.\nAdditionally, destruction of a number of vital farm-to-market roads\nin the Indian highland area has cut off communities from the access\nthey need to maintain some economic touch with 20th century life.\nSpecial priority will be given to opening up these vital lifelines of\ncommunication, necessary to facilitating broader reconstruction efforts\nin the future.\nS.R. 679\nS.R. 679\n~> Low\ns 3\nMEMORANDUM\n1258\nNATIONAL SECURITY COUNCIL\nWASHINGTON, D.C. 20506\n(Correspondence Referral)\nMarch 10, 1976\nTO:\nROLAND ELLIOTT\nFROM:\nJEANNE W. DAVIS not\nREFERENCE:\nEg\nTo: The President Date: February 10, 1976\nFrom: Pedro de Mesones\nSubject: Suggests Visit by Mrs. Ford or Susan Ford\nto Guatemala\nComment:\nA draft reply is attached at Tab A. The incoming letter is\nattached at Tab B.\nAttachments\nGERALD & FUMD LIBRARY\nSUGGESTED REPLY\nDear Mr. Mesones:\nThe President has asked that I reply to your letter of February 10,\nsuggesting a visit by Mrs. Ford or Susan Ford to Guatemala.\nAs you know, the President has been closely following develop-\nments in Guatemala since the tragic earthquake of February 4. Quick\naction was taken by this government to provide emergency assistance.\nThe President sent Daniel Parker, his Special Coordinator for Interna-\ntional Disaster Assistance, to Guatemala on February 12 to make a personal\nassessment of damages done and assistance needed and met with him on\nseveral occasions to discuss the ongoing relief needs. On February 19\nthe President submitted to the Congress a Special Bill for Guatemalan\nRelief and Rehabilitation calling for grant assistance of $25 million.\nSecretary of State Kissinger visited Guatemala on February 24\nto convey personally the condolences of the American Government and\npeople.\nWe appreciate your expression of interest and the benefit, of your\nconstructive idea.\nSincerely,\nMr. Pedro de Mesones\nPedro de Mesones Associates, Inc.\nFORD\n1625 Eye Street, N.W., Suite 903\n?\nWashington, D.C. 20006\nGERALD\nLIBRARY\nTelephones: (202)331-0447.8\nPedro de Mesones & Associates, Inc.\n7603417\n1625 Eye Street, N. W.\nSuite 903\nWashington, D. C. 20006\nFebruary 10, 1976\nThe Honorable Gerald R. Ford\nPresident of the United States\nThe White House\nWashington, D.C. 20500\nDear Mr. President:\nAs a staunch Republican interested in your 1976\nelection, please allow me to suggest a goodwill trip by\nMrs. Ford or your daughter, Susan, to Guatemala to offer\nboth your personal and this country's condolences and\nassistance in their recent tragedy.\nWithout question, this action would be seen by all\nthe Latin American countries as a gesture of friendship\nand would certainly enhance Secretary of State Henry\nKissinger's reception in his upcoming trip to Latin\nAmerica. This also would be a fine beginning in re-\nestablishing your credibility with and obtaining support\nfrom the Hispanic American population in this election\nyear.\nRespectfully,\nde memory\nPedro de Mesones\nPdeM: fe\nCC: The Honorable\nHenry A. Kissinger\nFORD\nR.\nGERALD\nLIBRARY\nS\n4\nMEMORANDUM\n1431\nNATIONAL SECURITY COUNCIL\nWASHINGTON, D.C. 20506\n(Correspondence Referral)\nMarch 11, 1976\nTO:\nJON HOWE\nFROM:\nJEANNE W. DAVIS\nREFERENCE:\nTo: The Vice President Date: February 17, 1976\nFrom: Michael Tolbert\nSubject: Offering services for Guatemala relief effort.\nComment:\nA draft reply is attached at Tab A. The incoming letter is\nattached at Tab B.\nAttachments\nGERALD\nFORD LIBRARY &\nSUGGESTED REPLY\nDear Mr. Tolbert:\nThe Vice President has asked me to reply to your letter of February 17\nin which you express your desire to assist in the emergency relief\nprogram for Guatemala. The devastation and destruction caused by\nthe earthquake of February 4 were indeed terrible blows for the people\nof a neighboring country to suffer. It has been truly gratifying to see\nso many private US citizens offer their services to help with relief efforts.\nThe United States Government has been conducting extensive relief\noperations since the earthquake struck on February 4. As you no doubt\nknow, we have been working through the regular staff of our Agency\nfor International Development (AID) Mission in Guatemala, as well as\nin cooperation with several private voluntary agencies that have active\nprograms in the country. I would therefore suggest that you write directly\nto the voluntary agencies, offering your services. I enclose for your\ninformation a report listing all the private non-profit groups working\nin Guatemala. The report contains a brief description of the type of\nproject in which each group is engaged.\nGERALD ? LIBRARY FORD\n2\nI trust that this information will give you a good starting point in\nidentifying those agencies that could effectively utilize your services.\nThank you again for your interest and concern.\nSincerely,\nEnclosure:\nDevelopment Assistance Programs\nof US Non-Profit Organizations\nin Guatemala\nMr. Michael L. Tolbert\nP.O. Box 5452\nAustin, Texas 78763\nGERALD ? LIBRARY FORD\nCH COUNTRY REPORT\ngivent Paul Boll\nDEVELOPMENT ASSISTANCE PROGRAMS OF U.S.\nNON-PROFIT ORGANIZATIONS IN\nGUATEMALA\nSEPTEMBER 1974\nPUERTO\nBARRIOS\nCOBAN\nUEZALTENANGO\ne\nGUATEMALA\nGERALD ? LIBRARY FORD\nGUATEMALA\nCOLEGIO INTERNACIONAL DE CARACAS\nformerly\nACADEMY LA CASTELLANA (1956-1971) and THE HIGH SCHOOL OF COLEGIO AMERICANO (1947-1971)\noperated by\nAcademy La Castellana, Asociación Civil\n7604328\nGrades K-12 Altos de La Trinidad. Las Minas. Baruta . Telf. 93.07.08. 93.06.08, 93.04.44\nMAILING ADDRESS: Apartado 62170 Caracas, Venezuela\nP.O. Box 5452\nAustin, Texas 78763\nFebruary 17, 1976\nVice-President Nelson Rockefeller\nWashington, D.C.\nDear Vice-President Rockefeller:\nI am sending this very important and urgent request to you as I know you have\nhad an interest in Latin American problems for many years. I want very much to\noffer my time and service to the relief program in Guatemala, but have not\nyot received positive action from the dozens of agencies to whom I have\nwritten. I am in a unique position at present to offer my time, and feel\nthat I could be of service.\nI am a social science teacher, between job assignments, with six months of free\ntime. This rarely occurs in teaching, and since the Nicaraguan earthquake of\n1973 I have wanted to offer assistance in Central America, but was always tied\nto teaching positions which prohibited my leaving.\nI am twenty-six, single, and have studied and lived in Latin America. I\nhold an M.A. in social science education, but would be interested in\nhelping in any possible manner in Guatemala. It would not have to be\nassociated with education. I am interested in work through the auspices of\nthe U.S. Government, international agencies, or private business.\nI would like to ask your assistance in coordinating my inquiry with the heads\nof agencies which you know to be involved in Guatomala. I would even appreciate\nit if you would send a copy of this letter to your brother at Chase Manhattan.\nI know there are many agencies, companies, and programs with which I could\noffer my services, if only I could reach them. Thanks for your help.\nSincerely,\nMichael L. Tolbert\nFORD\n(te1:512-392-6759)\nGERALD\nLIBRARY\nS 5\nMEMORANDUM\n1226\nNATIONAL SECURITY COUNCIL\nWASHINGTON, D.C. 20506\n(Correspondence Referral)\nMarch 12, 1976\nTO:\nVERNON LOEN\nFROM:\nJEANNE W. DAVIS\nREFERENCE:\nTo: The President\nDate: February 25, 1976\nFrom: Don Fuqua (M.C.)\nSubject: Suggests shipping mobile homes to\nGuatemala for the use of the earthquake victims.\nComment: As explained in the draft reply, the State\nDepartment has checked with the Department of Housing\nand Urban Development and has determined that mobile\nunits would be too expensive to purchase and transport\nto Guatemala. AID will be purchasing metal roofing\nsheets as a quicker and more economical way to provide\nshelter.\nYou sent the Congressman an interim reply on\nFebruary 27.\nA draft reply is attached at Tab A. The incoming letter is\nattached at Tab B.\nAttachments\nFORD LIBRARY &\nSUGGESTED REPLY\nDear Mr. Fuqua:\nThe President asked me to reply further to your letter of February 15\nsuggesting the use of mobile homes to provide shelter for the victims of\nthe recent earthquake in Quatemala. We asked the Department of State\nto look into the logistics involved in your interesting idea.\nThe Department of Housing and Urban Development does maintain several\nthousand mobile home units in various locations around the United States\nfor use as temporary shelter for victims of natural disasters. Unfortunately,\nthese units are quite large, about 65 feet long, and cost on the average\naround $5,000 each, not including transportation. Shipping these units\nto Guatemala and then relocating them in the mountainous regions where\nmost of the earthquake victims live would be an additional and quite\nsubstantial expense.\nBecause of the limited availability of funds, and the need to act quickly\nbefore the advent of the rainy season in May, the Agency for International\nDevelopment, which is coordinating US relief efforts, believes that faster,\nmore widespread and more economical relief for the homeless can be\nobtained by concentrating on shelters that can be constructed with\nGERALD ? LIBRARY FORD\n2\nmaterials already available in Guatemala or in neighboring countries,\nor that can be shipped in bulk from the US. Steel or aluminum roofing\nsheets are a case in point. AID is in the process of purchasing a sub-\nstantial number of these sheets for distribution through voluntary agencies\nalready working in Guatemala.\nSince almost all of the victims of the earthquake will be reconstructing\ntheir homes out of adobe, which is their traditional building material,\nAID is also providing assistance to demonstrate some simple techniques\nthat will make the adobe bricks stronger and more stress-resistant.\nStrengthened walls and stronger and lighter metal roofs should provide\nfor a sturdier and more earthquake resistant home that can be erected\nby an individual family.\nWe thank you again for your suggestion and for your interest in this\nmatter.\nSincerely,\nHonorable Don Fuqua\nHouse of Representatives\nWashington, D.C. 20515\nFORD LIBRARY & 03\n1266\n2-26\nDON FUQUA\n2266 RAYBURN HOUSE OFFICE BUILDING\nWASHINGTON, D.C. 20515\n2D DISTRICT\nFLORIDA\naid for\nUNITED\nCONGRESS OF THE UNITED STATES\nHOUSE OF REPRESENTATIVES\nWASHINGTON, D.C. 20515\nFebruary 25, 1976\nMF\nThe President\nThe White House\nWashington, D. C.\nDear Mr. President:\nThis nation and the world are deeply concerned over the plight of the\npeople of Guatemala where tens of thousands have been left destitute and\nwithout adequate food and housing.\nIt has come to my attention that our government owns thousands of mobile\nhomes and this could prove to be a source of immediate housing for many\nof these homeless families if they could be shipped to that unfortunate\nland. It is my suggestion that some thought be given to the use of\nthese mobile homes in this fashion since they are readily available and\nwould help bring this grief stricken land back to its feet.\nAny attention which can be given this request will be deeply appreciated.\nUnique\nDF/Wcb\nGERALD ? LIBRARY FORD\n1226\nLow\nMarch 16, 1976\nof\nDear Mr. Fugus:\nThe President asked se to reply further to your letter\nof February 15 suggesting the use of mobile homes to\nprovide shelter for the victims of the recent earth-\nquake in Customals. We asked the Department of State\nto look into the logistics involved in your interesting\n1dea.\nThe Department of Housing and Urban Development does\nmaintain several thousand mobile home units in various\nlocations around the United States for use as temporary\nshelter for victims of natural disasters. Unfortunately\nthese units are quite large, about 65 feet long. and\ncost on the avarage around $5,000 each, not including\ntransportation. Shipping these units to Guatenala and\nthen relocating them in the countainous regions were\nmost of the earthquake victims live would be an additional\nand quite substantial expense.\nBecause of the limited availability of funds, and the\nneed to act quickly before the advent of the rainy coason\nin May, the Agency for International Development, which\nis coordinating U.S. relief efforts, believes that faster,\nmore widespread and more economical relief for the home-\nless can be obtained by concentrating on shelters that\ncan be constructed with naterials already available in\nGuatemala or in neighboring countries, or that cas be\nshipped in bulk from the U.S. Steel or aluminum roofing\nsheets are a case in point. AID is in the process of\npurchasing a substantial number of these shoots for\ndistribution through voluntary agencies already working\nin Cuatemala.\nSince almost all of the victims of the earthquake will\nbe reconstructing their homes out of adoba, which in their\ntraditional building material, AID is also providing\nassistance to demonstrate some simple techniques that will\nmake the adobe bricks stronger and more stress-rosistent,\nFORD\n?\nGERALD\nLionahy\n2\n-rengthened walls and stronger, lighter metal roofs\nshould provide for a sturdier, more earthquake resistant\nhome that can be erected by an individual family.\nWe thank you again for your suggestion and for your\ninterest in this matter.\nSincerely,\nVernon c. Loan\nDeputy Assistant\nto the President\nThe Honorable Don Fuqua\nHouse of Representatives\nWashington, D.C. 20515\nbcc: NSC (Log #1226) PYI\nVCL:NSC:JEB:mlg\nGERALD\nA FORD LIBHARY\n6\nMEMORANDUM\n1149\nNATIONAL SECURITY COUNCIL\nWASHINGTON, D.C. 20506\n(Correspondence Referral)\nMarch 24, 1976\nTO:\nROLAND ELLIOTT\nFROM:\nJEANNE W. DAVIS\nREFERENCE:\nTo: The President Date: February 24, 1976\nFrom: John Bird\nSubject: Morrow Associates and Emergency Supplies\nfor Guatemala.\nComment: No comment.\nA draft reply is attached at Tab A. The incoming letter is\nattached at Tab B.\nAttachments\nR FORD LIBRARY\nSUGGESTED REPLY\nDear Mr. Bird:\nI am writing in reply to your telegram of February 24 to\nPresident Ford concerning your firm's efforts to sell food and medical\nsupplies after the recent earthquake in Guatemala. I have asked the\nDepartment of State to look into the allegations that your firm was\ndiscriminated against in the purchase of relief supplies.\nThe United States acted very rapidly following the earthquake\nto provide emergency assistance. I enclose for your information a\n\"Report to the President\" that details some of our actions to rush food,\nmedical supplies, and hospital facilities to the victims. At the specific\nrequest of the Government of Guatemala, U.S. Government relief efforts\nwere concentrated almost entirely in the small villages and towns of the\nhardest hit rural areas. A 100-bed U.S. Army field hospital was set up\nin the small town of Chimaltenango and U.S. helicopters and mobile\nmedical teams brought food and medical assistance into the remotest\nareas of the Central Highlands. Almost all of the rehabilitation and\nreconstruction assistance that the U.S. Government plans to provide\nto Guatemala will likewise be concentrated in the rural areas outside\nof the capital city.\nGERALD R LIBRARY FORD\n2\nAs to the purchase of emergency supplies of food and medicine,\nstocks on hand in Guatemala, or donated free of charge by various\ncharitable, civic, and business organizations, and foreign governments,\nincluding the U.S., were sufficient to meet emergency needs. Because\nof the generosity of the various donors, it was not necessary to purchase\nadditional imported supplies.\nI can recognize your disappointment that the firms you represent\nwere not able to market their products in Guatemala immediately after\nthe earthquake. I have been assured, however, that none of the actions\ntaken by representatives of the U.S. Government were intended to block\nthe sales efforts of U.S. firms. Our single objective was, and is, to\nhelp provide emergency assistance to the victims of the earthquake in\nthe quickest, most efficient way.\nSincerely,\nMr. John Bird\nMorrow Associates\n4028 Daley Street, Suite 104\nFort Worth, Texas 76118\nGERALD & LERRARY FORD\nDEPARTMENT OF STATE\nAGENCY FOR INTERNATIONAL DEVELOPMENT\nWASHINGTON\nTHE ADMINISTRATOR\nFebruary 16, 1976\nSPECIAL REPORT TO THE PRESIDENT\nON THE GUATEMALA DISASTER\nIn seismic terms, the Guatemalan earthquakes were \"major\";\nin human terms, this disaster must be ranked as a tragedy of\ngreat and terrible magnitude. Based on my visit to Guatemala\non February 12 and 13, I will attempt first to give you a\nbrief overview of the disaster and its setting.\nGeneral Situation\nThe major shock area is large - about 3,530 square miles, or\nequivalent to the Grand Rapids-Kalamazoo-Battle Creek area\nof Michigan. 1.03 million people populate the area and 80 -\n90 percent are now homeless. In the entire affected area,\n22,360 are dead, 74,000 were injured and over one million\nwere left homeless. (The wife of President Laugerud,\nconcentrating on assistance to children, estimates at least\n5,000 children became orphaned.) Overall, 20 percent of the\ncountry's people are directly affected. I should mention\nthat as harder information comes in, the numbers keep rising.\nIn U.S. terms, comparable figures would mean 2,800,000\nkilled and injured and 38,000,000 homeless.\nThe greatest impact is upon the poor - and it is essentially\na rural disaster. The rural poor cluster their small adobe\nhomes in villages. Adobe brick walls, while they look\nFORD\nsubstantial, are not strong. They collapsed allowing the\n&\nheavy clay tile roofs to fall in on the sleeping victims.\nThe urban poor live in make-shift shacks which simply fell\napart.\nGERALD\nLIBRARY\nIt is relevant to make two interesting side comments to the\nabove. First, the casualty toll was great and the count was\ndifficult to make because so many victims were trapped,\nunable to get outside before their dwelling collapsed during\nthe approximate thirty seconds of the main shock. Second,\nconventionally built homes, especially the newer, though\ndamaged, were not destroyed, thus inflicting fewer and less\nserious casualties.\n- 2 -\nCompounding the dimensions of the disaster was that it took\nplace at 3:02 a.m., the time when the greatest proportion of\nthe population was inside, asleep and not alert to respond\nquickly. And adding at least to the confusion was the\ndarkness. Where electricity existed, it was cut or turned\noff to reduce chances for fire and electrocution from exposed,\nhigh-tension lines.\nOutside Guatemala City, the terrain, rugged, mountainous,\nprobably of volcanic formation, makes communications of any\nkind (roads, phones, even radio) difficult even in normal\ncircumstances. Thus, in the vast hard-hit rural area virtu-\nally all immediate relief assistance was limited to that\navailable locally. The sudden, gigantic and urgent needs\nfor emergency help, tools, medicines were largely unmet\nduring the crucial early hours and first days until rescuers\ncould make their way in by some means.\nBefore turning to the response stage, I would like to mention\nanother facet, parenthetically. Your description to me of\nthe unusual nature of an earthquake you had seen some years\nago in Yugoslavia was confirmed. It is awesome. It is\nalmost eerie. Unlike other types of disasters, there is no\nclear-cut point marking the end of exposure to further risk.\nMore than 600 tremors have been felt since the first quake.\nThey are still happening. Several of the many I felt were\nsevere enough shocks to do additional damage and to be\nvisible in the sense of seeing the movements of the building\nI was in.\nThis has resulted in a widely felt sense of insecurity. A\nview of Guatemala City from a helicopter reveals tents in\ngardens, parks and on the sidewalk or street in front of\nhomes seemingly and reportedly not seriously damaged. Also,\nmany people sleep in their cars, if they don't have tents or\nother shelter from the very cool nights.\nMy impression is that, in immediate response to the disaster,\nvirtually everyone who wasn't a victim turned, unhesitatingly,\nto aid others. President Laugerud, for example, took direct\npersonal command immediately and was even able to check on\nFORD\none hospital's response capability within 27 minutes after\n&\nthe quake.\nThis self-initiated individual type of response quickly\nGERALD\nLIBRARY\nbecame organized by entity, e.g., government ministry,\nchurch or civic group, and voluntary agency. Then with the\nformation of the National Emergency Committee by the Presi-\ndent there came the means of beginning to coordinate activ-\nities for a national response, including the allocation of\nassistance resources to areas of priority need.\n- 3 -\nI. Assessment of Damage\nA. Physical Damage\nDamage is concentrated in the densely populated Indian-\ninhabited Eastern Highlands, portions of the capital city\nand wide areas to the west, roughly 20 percent of the area\nof the country. A number of important rural population\ncenters in the affected area were nearly totally destroyed,\nincluding Mixco (population 10,900), San Pedro (4,800),\nPatzicia (7,100), Patzun (8,300), Joyabaj (2,400), Tecpan\n(5,900), San Juan Sacatepequez (6,700), and E1 Progreso\n(4,000).\n1. Housing and Other Building Damage\nBy far the most devastating impact of the earthquake was on\nthe housing of the poor. The great majority of Guatemala's\npopulation resides in small towns and rural areas in adobe\nhouses. Over 150,000 of these are estimated by the Govern-\nment of Guatemala to have collapsed. In Guatemala City,\nsome 100,000 dwellings of the urban poor were destroyed.\nThe value of these urban and rural dwellings has not been\ndetermined. In most cases, they were built by the families\nwho occupied them. It is probable that they will be rebuilt\nin the same fashion. A rough estimate of the financial\ncosts of replacement might range from $150-$250 million,\ndepending on whether new construction will adopt earthquake\nresistant design improvements.\nThere was, of course, loss to commercial, church, and public\nbuildings, essentially in the small rural towns. No estimates\nare available, as yet, on these losses.\nSeveral major hopsitals in the capital were damaged by the\nquake and their staffs have been operating in other available\nbuildings on a make-shift basis, pending assessment, repair,\nor replacement of damaged hospitals. Hospitals in several\nother communities were also severely damaged, as were many\nhealth centers and health posts.\nFORD\n&\n2. Infrastructure\nGERALD\nLIBRARY\n(a) Transport and Communications\nThe Guatemala City-Puerto Barrios highway and railroad, the\nprimary transportation links from the capital to the Caribbean\ncoast, have been cut because of a three-span fallen bridge\nand numerous landslides. A U.S. military engineer survey\nteam is now in the field assessing the extent of damage.\n- 4 -\nA much more circuitous road from the coast to the capital is\nstill open, but cannot handle the entire heavy traffic load\nthat normally passes between the capital and the coast.\nPreliminary estimates of the cost of restoration of the road\nfrom Guatemala to the Caribbean approach $25 million. In\nmany areas of the highlands, roads also have been blocked by\nnumerous slides. An estimate of cost of restoring major and\nsecondary roads throughout the damaged area is $35 million,\nof which the major cost will probably be for the main highway\nartery to Puerto Barrios. The cost to repair the railroad\nis not yet known.\nTelephone communications, never particularly good, have been\nseverely damaged by the quake. Phone lines are down through-\nout the affected area. Restoration is under way. However,\nit will be some weeks before all major phone lines are\nrepaired.\n(b) Water and Electricity\nThe first earthquake left approximately 40 percent of the\nresidents of the capital without water supplies, and the\nwater supplied to other sections of the city was unprotected\nby chlorination. This situation has improved marginally\nsince then, due to emergency repairs and to increased chlorin-\nation. In many smaller cities, the water supply and distri-\nbution systems were partially destroyed, although the main\nwater sources and storage systems remain relatively intact.\nRestoration and improvement of all of these systems will\nrequire major effort.\nElectricity in Guatemala City is back on. However, regional\ntransmission as well as local distribution of power service\nto many localities in the interior has been and still is\ndisrupted.\nFORD\n&\nB. Economic Impact\n1. Balance of Payments Effects\nGERALD\nLIBRARY\nFortunately, Guatemala enjoyed a relatively strong balance\nof payments position in 1975. Its net foreign exchange\nreserves increased from the end of 1973 to the end of 1975\nfrom $201 million to $280 million, a level equal to approxi-\nmately four months of imports. Still too early to project\nthe effects of the earthquake on Guatemala's foreign exchange\nposition, it is clear the tourism income, which reached $70\nmillion in foreign exchange earnings in 1975, will decline\nand probably sharply. While, in the overall, hotels are\nonly slightly damaged, some suffered heavy damage. It will\nbe some time before prospective visitors regain confidence\nand resume their travels to Guatemala.\n- 5 -\nMore importantly, the earthquake is expected to cause a\nsignificant upsurge in imports, particularly of glass,\nconstruction materials, and equipment. Some stocks of\nmanufactured goods will also have to be replaced. Guate-\nmala's main foreign exchange earners other than tourism,\ni.e., coffee, sugar, cotton, bananas and meat, have not been\naffected, and almost all of its industrial production capac-\nity remains intact.\nAs its foreign debt service burden has been below 5 percent,\nGuatemala therefore has the capacity to borrow substantially\nto help finance its reconstruction and investment programs.\nHeavy reliance on large commerical borrowings, however,\nwould increase debt servicing costs rapidly.\n2. Budgetary Effects\nThe government's budgetary position, traditionally strong,\nwill certainly be adversely affected. Some reductions may\nbe expected in corporate and personal income tax collections\nas affected businesses write off their losses. Most signif-\nicant will be the effect of increased government expenditures\nfor relief, rehabilitation and reconstruction. The govern-\nment will be called upon to assist the rural and normally\npoor municipalities in restoring the water supply and other\nessential services and provide emergency assistance to the\nhomeless and medical assistance to the injured. Moreover,\ncredit for housing reconstruction will be needed for many of\nthe homeless. Unfortunately, these expenditures, either for\ntemporary or more permanent shelter, cannot be spread over a\nnumber of years but will have to be concentrated within a\nFORD\n&\nrelatively short period.\n3. Effect on Prices\nGERALD\nLIBRARY\nPrice stability has long been a characteristic of the Guate-\nmalan economy, but that changed in 1973 and 1974 when, as\ndid many countries, Guatemala, largely from external causes,\nexperienced serious effects from inflation. However, by the\nend of 1975, price stability had significantly improved.\nStrong inflationary pressures are expected, as an aftermath\nof the disaster, in the area of construction and construction\nmaterials. Demand is expected to exceed substantially\navailable productive capacity. Wages in the construction\nindustry are expected to rise sharply. As an offset, the\njust completed harvests of corn, beans, and wheat were\nrelatively bountiful and can be expected to hold down price\nincreases in basic foodstuffs. However, large quantities of\ngrains were stored in and around homes and were partially\nlost. This may cause some increases in food prices.\n- 6 -\n4. Employment Effects\nA number of businesses, closed temporarily until power was\nrestored and repairs were made, are now reopening. However,\nmany neighborhood shops and small businesses have been\ncompletely destroyed. Tourism and arts and crafts, normally\nan important source of employment, may be depressed for at\nleast some months. Moreover, with SO many homes destroyed\nand material possessions lost, the arts and crafts industry,\nlargely a home industry, may suffer dislocation.\nThese adverse employment effects are expected to be of a\nshort-term nature. The intensive reconstruction effort will\nprovide additional jobs in the construction and construction\nmaterials industries. The manufacturing industry, which\naccounts for roughly 6 percent of the GNP, has not been\nseriously affected, and most major commerical establishments\neither have resumed, or soon will resume, operations.\nIn sum, the impact of the disaster on the balance of payments\nbudget, production, and employment is not expected to be\nunmanageable. In human terms, however, the disaster is\ntruly a disaster. Hardest hit were the poor, those who can\nleast afford to lose their employment, homes, and possessions.\nII. Disaster Relief\nA. Immediate Response\n1. Government of Guatemala\nA national emergency was declared immediately after the\nfirst earthquake. The military received and has exercised\nextraordinary powers to deal with the immediate relief\nproblems. The government has invested, and is investing,\nmassive effort in clearing roads of landslide debris,\ncompleting initial damage assessments and distributing\ngovernment food stocks. Price controls are being enforced\nto prevent the exploitation of temporary shortages. Citizens\ngenerally are contributing time and financing to help to\nsave lives and feed the most affected. Private sector\nresources, whether channeled through the Guatemalan Red\nCross or other organizations or provided on an individual\nbasis, have played a significant role in speeding relief to\nthose affected by the earthquake. The mass of the popula-\ntion is \"cooperating\" by its patience, and an almost stoical\ncapacity for suffering.\nFORD\na\nGERALD\nLIBRARY\n- 7 -\nThe Guatemalan Government has formed a National Emergency\nCommittee to coordinate the government relief efforts and\nthe generous assistance being provided by the U.S. and other\ndonors. The coordination task is large, complex and contin-\nuing. The improving communications system and the growing\nexperience of the government point toward the easing of the\ncoordination problem.\nThere have been but few reports of looting, with the govern-\nment moving quickly to deal with any reported problem.\nDuring our visit we heard no complaints about diversion of\nrelief supplies.\n2. United States Government\nWithin hours after the first quake, the U.S. country team in\nGuatemala and A.I.D.'s Foreign Disaster Relief Center were\nin operation on a 24-hour basis. Quickly, we began to move\nin supplies, equipment, and personnel. Among the first\narrivals was a U.S. military Disaster Assistance Survey Team\n(DAST) from Panama. This was followed quickly by a fully-\nequipped and staffed 100-bed U.S. military field hospital\nthat is in operation in the center of the hardest-hit area -\nChimaltenango.\nSubsequently, we provided a U.S. Engineering Survey Team to\nassess damage to roads, bridges, and railroads; 18 large\nhelicopters; 8 two-man medical/communications teams to\nassess needs and provide medical assistance in isolated\nareas; and a considerable amount of tents, medical supplies,\nfield kitchens, generators, etc., from A.I.D.'s disaster\nrelief stockpile in Panama. Two medical officers from the\nCommunicable Disease Center in Atlanta and two U.S. Public\nHealth Service pharmacists are assisting the Guatemalans in\nestablishing systems to survey disease outbreaks and in\norganizing the receipt, storage, and use of the large\nquantities of donated medical supplies. We are also funding\nthe transportation costs for certain high-priority relief\nshipments by voluntary agencies. Most of our efforts are\nconcentrated in the hardest-hit areas of the highlands\naround Chimaltenango, for the Guatemalan Government has\nFORD\n&\nasked us to concentrate our resources on this area, which\nwas almost totally devastated.\nAs of February 14, we have allocated $3.6 million to this\nGERALD\nLIBRARY\neffort. The cost of relief over a 30 to 60-day period may\nrequire up to $20 million, depending on the timing for the\nphasing down of helicopter and field hospital use.\n- 8 -\n3. Other Donors\n(a) Third Country and International Organizations\nRelief Assistance\nThus far, 24 nations other than the United States (and the\nlist is growing) have contributed to the relief effort.\nContributions are being made in cash, personnel, transport,\nfood and other commodities. I am attaching hereto a listing\nof third-country assistance based on the information currently\navailable to us (TAB A).\nInternational organizations are also responding to the needs\nof the immediate relief phase. Their known contributions,\nwhich already amount to over $3.6 million, are listed in\nattachment TAB B.\n(b) Voluntary Agencies\nVoluntary agencies, such as CARE, Catholic Relief Services\n(CRS), Caritas, the Salvation Army, the Red Cross, Seventh\nDay Adventists, Partners of the Americas (Alabama), and a\nhost of others, including from other countries, have provided\nand are providing generous and effective support as they put\nto quick use long and practical experience in dealing with\ndisasters. There is no reliable estimate yet available of\nthe financial value of their assistance. A listing, based\non currently known information, is also attached (TAB C).\nB. Post-Immediate Relief Phase\nWe are now at a time when immediate relief requirements are\nmoving into manageable proportions. Medical emergency needs\nhave been largely identified and satisfied, but certainly\nnot entirely, particularly in the more remote rural areas.\nIn-country stocks of medicines, bolstered by donations still\narriving, should be adequate to satisfy requirements, although\nthere may be specialized needs from time to time which\ngenerally can be handled by other donors and private voluntary\norganizations. The major hospitals in Guatemala City are\nfunctioning well and are meeting the immediate needs for\nmedical and surgical care.\nNo signs of epidemics have appeared. The process of restoring\nwater services in rural towns, as well as in parts of Guatemala\nCity, is moving ahead rapidly with provision for proper\ntreatment of water supplies receiving high priority. Apart\nfrom the need for a relatively minimal quantity of tools and\nsupplies in addition to the water storage tanks already\nsupplied by the U.S., completion of temporary repairs to\nFORD\n&\nGERALD\nLIBRARY\n- 9 -\nwater systems in the affected area should be possible without\nsignificant further external relief requirements.\nWater supply capacity in the capital is back to about 50\npercent of pre-earthquake levels. Shortage of supply is of\nlesser concern than is quality. The municipal water plants\nare chlorinating the water being distributed, but damage to\nthe city's parallel water and sewage pipe systems has rendered\nsupply potentially unsafe. Attention is being given to this\nproblem by the government with assistance by the U.S. and\nothers. The monitoring by the health authorities of hospitals\nand clinics is continuing in order to detect as quickly as\npossible any emerging health problems.\nThe major continuing problem, for the short and long run, is\nthe need to provide adequate shelter to the many homeless.\nGiven the relatively modest aspirations of the rural popula-\ntion, provisional needs increasingly are being met by the\ngovernment and several donors. However, additional new\ninputs for this purpose are being considered by others.\nProperly handled, temporary shelter solutions can form the\nbasis for rapidly resolving permanent housing needs through\nself-help programs utilizing simple materials and tools.\nBarring further major quakes, a reasonable degree of normal\neconomic activity and public services should be restored and\nin place in all but the remote areas by the end of this\nmonth or early March. An important factor bearing on this\nprocess, however, will be the rapidity with which closed\nroads are opened to permit access for the movement of food\nand other commodities. While there is no possibility that\nthe main highway to Puerto Barrios can be opened within this\ntime frame, temporary bypass construction will be needed.\nIn-country equipment capacity should be sufficient to handle\ngeneral road clearing work, but preliminary surveys by the\nU.S. Army Corps of Engineers of Atlantic highway damage\nindicate that reopening of the highway will require a major\neffort, expecially if the work called for along the fifty\nmiles primarily affected is to be completed by the advent of\nthe rainy season in mid-May and which normally continues\nuntil November. Whether this operation, located in rugged,\ndifficult terrain, is within the country's capability must\nawait completion of the in-depth damage assessment by the\nCorps of Engineers and a review of construction capacity now\nbeing carried out by the Ministry of Public Works. Decisions\nare expected shortly. Opening the road is obviously one of\nthe priority tasks. The government, with its own facilities,\nhopes to be able to restore the railroad link before the\nrainy season.\nFORD\nA.\nGERALD\n- 10 -\nFood stocks, augmented through foreign donations, should be\nsufficient for the next few months. There will be continuing\ndifficulties, however, in ensuring adequate supplies in all\nareas because of access problems.\nIII. Rehabilitation and Reconstruction\nEven while the Guatemalans struggle to deal with the emergency\nneeds facing them, attention must be given, and is being\ngiven, to the next phases, i.e., the shorter-run rehabilita-\ntion task and the longer-run reconstruction task. There is\nno clear line distinguishing between these phases, and they\nare not necessarily successive in time sequence, as some\nmust proceed in planning and execution simultaneously.\nEssentially, what is involved are decisions on policies and\nactions for interim and long-term responses to the conse-\nquences of the disaster.\nAfter a relatively long period of slow economic growth,\nGuatemala, in recent years, has begun to develop a national\nnetwork of public services with increased capacity to attend\nto the development needs of the large mass of rural and\nurban poor. The interruption caused by the earthquake in\nthis delayed process of spreading the benefits of develop-\nment to perhaps 80 percent of Guatemala's people poses not\nonly a humanitarian problem but a challenge of fundamental\nimportance to the future course of that nation. In recog-\nnition of this fact, President Laugerud has announced that\nit will be the policy of his government to continue overall\ndevelopment efforts for the entire country, guided by the\n1975-79 Development Plan. The necessary rehabilitation and\nreconstruction efforts in the earthquake affected areas are\nobviously of high priority, but this priority should desir-\nably not deter the government from its development efforts\nto improve the quality of life of the poor Guatemalans.\nThe National Economic Planning Council is about to complete\nan initial assessment of damage cost and economic impact\nprojections which will form the basis for more precise\nestimates of external assistance needs and internal self-\nhelp capacity. Major capital inputs will obviously be\nrequired for housing, road repair, public infrastructure\n(schools, medical centers and hospitals, water supply\nsystems, and public buildings), small business rehabili-\ntation and communication facilities. Moreover, small farmer\nproductivity must be assured through effective and timely\nprovision of normal governmental and cooperative services\n(credit, technical assistance, distribution of improved\nFORD\nseeds and fertilizers, etc.). The extent to which this\n&\ninstitutional infrastructure has been disrupted in the\nGERALD\nLIBRARY\n- 11 -\naffected areas is not yet fully dotermined, but it is impor-\ntant that it be in place and functioning within the next 6-8\nweeks in anticipation of the May planting season. Obviously,\nprojections of future food import needs will be influenced\nby how well the planting goes in the affected area which,\noutside of Guatemala City, is largely populated by small,\nsubsistence-level farmers.\nIV. Resources for Rehabilitation and Reconstruction\nA. Guatemalan Self-Help Measures\nThe administration of President Laugerud has been distin-\nguished by its dedication to accelerating programs with\nimpact in the long-neglected social areas. A competent\nmanagerial team within his cabinet has pushed forward major\ndevelopment projects, ranging from improved water supply to\ngreatly increased electric power that had begun, before the\ndisaster, to move Guatemala into the forefront of the\nCentral American countries in terms of growth. If, as we\nhope, major economic activity quickly will be restored to\nthe pre-earthquake level and fiscal progress can be main-\ntained and intensified to help carry the heavy burdens now\nplaced upon the population, Guatemala should be in a posi-\ntion to help finance a major portion of the programs re-\nquired to regain and surpass its pre-earthquake situation.\nThe Guatemalan authorities stress their recognition that the\nfoundation of Guatemala's recovery cum development thrust\nwill rest solidly on its own self-help measures. They\nfurther recognize that external assistance will depend\nheavily on demonstration of such self-help. It is too soon\nto judge whether it will be possible for the government to\npursue fully recovery and development simultaneously.\nFortunately, as noted, at the time of the disaster, Guatemala\nwas in a relatively strong financial and economic situation\nwhich can bolster the self-reliance underpinning of their\nlaudable approach. Some tradeoffs may be necessary, however.\nA major question in the post-earthquake period situation is\nthe administrative and managerial capacity of Guatemalan\ninstitutions to handle the increased burdens of a recon-\nstruction program. This is understandable because of the\nburdens being placed on top of the normal ones already\nassociated with implementing an active and expanding develop-\nment program. Preliminary consideration is being given to\ncreating a special reconstruction entity. Such an entity\nwould have the responsibility and authority to plan and\ndirect the utilization of all resources destined for recon-\nFORD\nstruction. An important benefit of this approach would be\n?\nGERALD\nLIBRARY\n- 12 -\nthat the entity would be in a position to hire or have\nassigned to it top-notch, qualified personnel, thereby\navoiding the problem of overloading existing ministerial\nstaffs. Presumably, the new entity would also be granted\nemergency powers, enabling it to bypass many of the Guate-\nmalan Government's present internal administrative proce-\ndures, thus speeding up project implementation.\nB. External Assistance\n1. United States\nApart from immediate assistance provided to meet the initial\nemergency and which will be phased down with the decreasing\nneed for such assistance, the question of further U.S.\nassistance can be approached from two levels. The first\nessentially involves reviewing existing loan and grant\nprojects to determine whether restructuring would be feasi-\nble. This examination is underway. Fortuitously, A.I.D.\nrecently (December 1975) had authorized a $13 million loan\nfor small farmer development which is directed at the\nHighland Indian farmer. The Minister of Finance has indi-\ncated that the Guatemalan Government wishes to sign the loan\nagreement immediately. Our preliminary assessment is that\nessentially no restructuring will be necessary to ensure\nconcentration of resources where needed. Also, the Govern-\nment of Guatemala and A.I.D. signed in November 1975 a $7\nmillion rural primary education loan which included approx-\nimately $4.2 million for up-grading school buildings pri-\nmarily in the Highland area. Some reorientation of prior-\nities in this program will likely be required in terms of\nschool site selection, but, essentially, this loan is\navailable to assist in the rehabilitation and reconstruction\neffort. Also, additional U.S. Government support, through\nthe U.S. International Disaster Assistance Authority, for\nthe early rehabilitation effort is being considered, pending\nfurther assessment of identified needs. The assessment is\nalready underway and will require continuing close coor-\ndination with the government, other donor nations, and\ninternational organizations. Only until we know more of the\nnature and substance of the international and Guatemalan\nGovernment's national response can we establish our own\npriorities and clarify possible additional funding require-\nments.\nU.S. voluntary agencies possess large capabilities, unique\nto each voluntary agency, which can play an important role\nin the rehabilitation phase. They are on the ground with\nestablished delivery systems which can meet the needs of\nFORD\nmany disaster victims without further straining government\n?\ncapacity. We hope that this capacity will continue to be\nutilized in the post-relief phases.\nGERALD\nLIBRARY\n- 13 -\nOver the next months, we anticipate that the Guatemalan\nGovernment's planning process will identify specific, longer-\nrun needs which could appropriately be met through A.I.D.\ndevelopment loans and grants and which would clearly be\nconsistent with congressional mandate criteria for develop-\nment assistance. We should seek to be responsive within the\nmeans that may be made available through the appropriation\nprocess.\n2. External Assistance from Other Sources\nFor the post-emergency relief phase, I believe that the\nmajor burden of external assistance can be carried by the\nmultilateral agencies, particularly the International Bank\nfor Reconstruction and Development (IBRD) and the Inter-\nAmerican Development Bank (IDB). The major requirements for\nshelter and urban reconstruction, generally, as well as more\npermanent restoration of infrastructure (roads, bridges,\nrailroads, and ports), may well find substantial financing\nthrough these multilateral channels to supplement Guatemalan\nresources. It is interesting to note that only last month\nthe Inter-American Development Bank provided $135 million in\nloans for Guatemala (more than that country has had in total\nduring the previous fifteen years of the Bank's existence).\nPortions of these may be redirected as a result of the\ndisaster. Both financial institutions are already planning\ntheir active involvement. An IDB team has already been to\nGuatemala and a World Bank team is being dispatched shortly.\n3. Coordination\nLeadership in the coordination of the rehabilitation and\nreconstruction efforts has to come from the Guatemalans.\nThey know it. With the support of ourselves and the many\nothers interested in helping Guatemala, they can well perform\nthe task. We anticipate that a consultative arrangement\namong donors and lenders will develop to insure a maximum,\ncoordinated effort.\nV. Contingency Planning for Possible Future Disasters\nEven now, the Government of Guatemala must significantly\nstrengthen its contingency planning for future disasters.\nRegrettably, the possibility cannot be ruled out that Guate-\nmala, much of which is located along the long east-west\nMotaqua Fault, may still face other quakes.\nThe U.S. Government can provide technical assistance to\nFORD\n&\nthe Guatemalans for contingency planning. We plan to help\nGuatemala lay out the various options it may have for\nGERALD\nLIBRARY\n- 14 -\nresponding to any future natural disasters. We feel that\nmore can be done to help the Guatemalan Government not to be\ntaken by total surprise in the event of another major disaster.\nFor example, United States Geologic Survey Geologists are\nnow monitoring the tensions of the fault line which runs\nnear Guatemala City. The tension has not yet abated fully\nand, with sophisticated monitoring devices, we may be able\nto provide the Guatemalan Government with some forewarning\nof another major earthquake.\nBecause the terrain of this country has changed significantly\nin some areas, we are alerting the Guatemalan Government to\nthe concern that flooding of abnormal proportions may occur\nthis year. Members of the U.S. Army Engineering Survey Team\nare making assessments of some possible waterways that may\ncause flooding damage to the already-disrupted major highway\nto the sea.\nMr. President, the government and the people of Guatemala\nhave responded well to the aftermath of the disaster.\nCertainly, there were and, indeed are, problems of coor-\ndination and maximum effective use of domestic and foreign\nresources; but the consensus of experienced observers is\nthat the Guatemalan effort, given the enormity of its tasks,\nhas responded well. They merit the continuing help from the\nUnited States and others.\nPresident Laugerud asked that I convey to you, on behalf of\nhimself and his people, the deepest appreciation for your\npersonal interest and support. He stressed that it was not\nonly the important technical and material assistance being\nprovided by the U.S. Government and people but also the\nmoral encouragement and bolstering derived by his government\nand the Guatemalan people from the spirit and timeliness of\nthat support. He emphasized, too, his recognition that\nGuatemala itself must bear the major burden of the present\nand continuing costs of the disaster and that the nature and\nextent of its self-help measures will help determine the\nnature and extent of external support.\nI wish also to commend to you all elements of the U.S.\ncountry team. Under the active leadership of Ambassador\nMeloy, they continue to devote themselves on a round-the-\nclock basis. I believe all the people of the United States\nmay be proud of the U.S. role in helping the Guatemalan\npeople in the traumatic aftermath of a major disaster.\nFORD\n?\nGERALD\nLIBRARY\n- 15 -\nWhile many other nations and organizations responded quickly\nwith supplies and personnel, the U.S. response, both public\nand private, was critical in averting a serious worsening of\nthe crisis.\nIn making the trip to Guatemala, I was joined by two con-\ngressional staff members, Ms. Herschelle Challenor of the\nHouse International Relations Subcommittee on International\nResources, Food and Energy, and Mr. Richard McCall legis-\nlative assistant to Senator Gale McGee, Chairman, Senate\nForeign Relations Subcommittee on Western Hemisphere Affairs.\nI am grateful for their participation. Mr. Herman Kleine,\nmy Assistant Administrator for Latin America, and Major\nMarshall N. Carter, USMC, a White House Fellow serving as my\nspecial assistant, also accompanied me. Their support is\ngreatly appreciated.\nDanilButh\nDaniel Parker\nAttachments:\nA - Third Country Donor Assistance\nB - International Organizations Assistance\nC - Voluntary Agency Assistance\nGERALD ? LIBRARY FORD\nis Scowerft\nThe White House\nWPD016\n552P EST FEB 24 76\nWAC365(1746)(2-046773E055)PD 02/24/76 @\nICS IPMBNGZ CSP\n1976 FEB 24 PM 5 59\n8175891441 TDBN FORT WORTH TX 222 02-24 0546P EST\nPMS PRESIDENT GERALD FORD, REPORT DELIVERY BY MAILGRAM, DLR\nWHITE HOUSE\nFEB 25 PM\nWASHINGTON DC\nMAIL RODI\nBSACK TM\nDENNIS MORROW AND ASSOCIATES REPRESENT FOUR SEPARATE COMPANIES WHO\nSELL EMERGENCY FOOD AND MEDICAL SUPPLIES. AFTER SPENDING\n37\nCONSIDERABLE TIME EFFORT AND MONEY, WE FEEL YOUR ADMINISTRATION HAS\nDISCRIMINATED AGAINST, AND BLOCKED, OUR ATTEMPTS TO ASSIST IN THE\nGUATEMALA EMERGENCY. THE GUATEMALA EMERGENCY DESK, STAFFED BY MRS\nWORSLEY OF THE STATE DEPARTMENT AND THE DIRECTOR OF ECONOMIC\nAFFAIRS, US EMBASSY IN GUATEMALA, MR FULLER, REFUSED TO RECIEVE OUR\nPERSONAL REPRESENTATIVE, ATTORNEY DENNIS MORROW, NOW IN GUATEMALA,\nIN ORDER THAT HE MAY BE ALLOWED TO SUBMIT OUR FIRMS' PROPOSALS AND\nASSISTANCE ON AN EQUAL BASIS, WITH OTHER AMERICAN AND INTERNATIONAL\nCOMPANIES. THIS IS NEGLECTING THE GUATEMALA PEOPLE IN THE\nOUTREACHING COUNTRYSIDES OF GUATEMALA. WE REALIZE THE CAPITOL CITY\nIS WELL ON THE WAY TO RECOVERY. MR FULLER'S ATTITUDE REFLECTS THE US\nEMBASSY AND YOUR ADMINISTRATION COULDN'T CARE LESS ON WHAT HAPPENS\nTO THE NATIVES OF THE COUNTRYSIDE.\nFORD\nMR FULLER REFUSED TO GIVE MR MORROW A PROPER AUDIENCE OR TO\nINTRODUCE MR MORROW TO THE DECISION MAKING COMMITTEES.\nGERALD\nLIBRARY\nIT APPEARS THAT MRS WORSLEY AND MR FULLER ARE ONLY DOING BUSINESS\nWITH VERY HIGH POLITICAL, INFLUENTIAL AND SPECIAL INTEREST GROUPS.\nFORM\nAS A LAST RECOURSE, WE REQUEST YOU TO INITIATE AN INVESTIGATION AS\nGOVERNMENT FINANCED PROGRAMS, SUCH AS THE GUATEMALA EMERGENCY.\nJOHN BIRD\nMORROW ASSOCIATES\n4028 DALEY\nSUITE 104\nFORT WORTH TEXAS 76118\n8175891441\n8172684564\nNNNN\nGERALD R LIBRARY FORD"
}