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...first anniversary of the Alliance for Progress last year, Coordinator Teodoro Moscoso fired off a blunt message to his staff. There was, he said, "nothing to celebrate." Last month, when it came time for a second anniversary, Puerto Rico's Moscoso found signs of progress in the ten-year program for social reform and economic development in Latin America. As "brick and mortar" evidence, he noted that U.S. Alliance funds, amounting to $1.5 billion in the past two years, have helped build 140,000 homes, 8,000 classrooms, 1,500 water systems and 900 hospitals and clinics; eleven nations...

Author: /time Magazine | Title: The Alianza: Cut When It Hurts | 9/20/1963 | See Source »

...recently chopped nearly $1 billion from President Kennedy's original $4.5 billion request for fiscal 1964. Despite earlier congressional authorization of $600 million a year over a four-year period, the House was now willing to allow only $450 million for the Alliance. If the cut stands, says Moscoso, the U.S. Government investment in all of Latin America next year will amount to little more than what Russia is pumping into Communist Cuba alone...

Author: /time Magazine | Title: The Alianza: Cut When It Hurts | 9/20/1963 | See Source »

...vote of no confidence in the Alliance. Staunch supporters of the program felt abandoned, complained that the U.S. had not kept its word. Predictably, Fidel Castro's Havana radio gloated over the "doomed" Alliance. To make matters a little worse, the aid cut came just when, according to Moscoso, the "objectives and principles of the Alliance are beginning to make an impact on the thinking of Latin Americans." Says Moscoso: "I've tried to explain it to them, but I'm afraid that disenchantment with the Alliance has already set in. We've made commitments...

Author: /time Magazine | Title: The Alianza: Cut When It Hurts | 9/20/1963 | See Source »

Houses & Medicine. By scraping up money from such sources as the Export-Import Bank and the Peace Corps, Moscoso hopes to stretch out his budget for a while. But Alliance economists are busy figuring out scaled-down programs, even though there is a possibility that the Senate might reverse the House action. A $150 million cutback could mean abandoning plans next year to build 10,000 classrooms and low-cost housing for some 175,000 people; it would cancel low-interest loans to 10,000 farmers for plows, seed and fertilizer to escape subsistence-level farming, wipe out a plan...

Author: /time Magazine | Title: The Alianza: Cut When It Hurts | 9/20/1963 | See Source »

...light of the Alliance's slow start and the widespread criticism of it, congressional impatience is understandable. But the danger is that a sharp cut in the aid funds might well, as Moscoso warns, cause the U.S. to "lose the tenuous but specific initiative we have gained in Latin America during the last two years...

Author: /time Magazine | Title: The Alianza: Cut When It Hurts | 9/20/1963 | See Source »

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