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STORET STOURITI LIVE ON -30- for an expansion of their programs. Assuming a continuing ability of the Latin American states to repay, we should seek an acceleration of these programs. One possibility for a nore positive approach to development through loans is the joint conmission technique recently devised for Brazil; Latin American countries often lack the ability to plan and present to banks econonically sound loan projects. 37. Ve should continue our grant assistance in the con- struction of the inter-Anerican hightay which, when conpleted, will provide an overland route to the Panama Canal and stimulate the economic development of the 5 Central American republics and Panama. 26/ We should also honor our commitment to assist Nicaragua in building the partially conpleted Rama Road which will provide the only Central American overland route from the Pacific to the Atlantic north of Panama and contribute to the development of that country. And eventually it will be necessary to honor 26 This assistance is extended, except in Guatenala, under agreements which grant certain concessions to us in respect of the use of the highways and is usually natched with funds from the local government. The three gaps renaining are in northern Guatenala, northern Costa Rica and nor thern Panama-southern Costa Rica. The latter represents by far the most formidable undertaking and may require us to contribute unmatched funds to both Costa Rica and Panama against certain concessions which we should obtain from then. DECLASSIFIED SECRET - SECURITY INFORLIATION E. O. 11652, Sec. 3(E) and 5(D) 5377 Dept. of State letter, By NLT- NC MARS Date 5-27-77 )

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    "ocrText": "STORET\nSTOURITI LIVE ON\n-30-\nfor an expansion of their programs. Assuming a continuing\nability of the Latin American states to repay, we should seek\nan acceleration of these programs. One possibility for a nore\npositive approach to development through loans is the joint\nconmission technique recently devised for Brazil; Latin American\ncountries often lack the ability to plan and present to banks\necononically sound loan projects.\n37. Ve should continue our grant assistance in the con-\nstruction of the inter-Anerican hightay which, when conpleted,\nwill provide an overland route to the Panama Canal and stimulate\nthe economic development of the 5 Central American republics and\nPanama.\n26/\nWe should also honor our commitment to assist\nNicaragua in building the partially conpleted Rama Road which\nwill provide the only Central American overland route from the\nPacific to the Atlantic north of Panama and contribute to the\ndevelopment of that country. And eventually it will be necessary\nto honor\n26 This assistance is extended, except in Guatenala, under\nagreements which grant certain concessions to us in respect of\nthe use of the highways and is usually natched with funds from\nthe local government. The three gaps renaining are in northern\nGuatenala, northern Costa Rica and nor thern Panama-southern\nCosta Rica. The latter represents by far the most formidable\nundertaking and may require us to contribute unmatched funds to\nboth Costa Rica and Panama against certain concessions which\nwe should obtain from then.\nDECLASSIFIED\nSECRET - SECURITY INFORLIATION\nE. O. 11652, Sec. 3(E) and 5(D)\n5377\nDept. of State letter,\nBy NLT- NC MARS Date 5-27-77\n)"
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