Joint Statement Following Discussions With the President of El Salvador.

PRESIDENT Jose Maria Lemus, of the Republic of El Salvador, today concluded a three-day State Visit to Washington, departing for New York at 9:15 a.m.

During the course of the State Visit President Lemus and the President of the United States held useful discussions on matters of interest to both countries. These talks dealt primarily with United States-El Salvador relations but also included an exchange of views on significant developments in inter-American affairs.

While in Washington President Lemus addressed a Joint Meeting of both houses of Congress, and he and members of his Party conferred with the Acting Secretary of State and other United States Government officials. Alter leaving Washington President Lemus will visit New York, Springfield, Illinois, Houston, Texas, and New Orleans and will meet governmental, cultural, and business leaders.

I.

The two Presidents reaffirmed the traditional close ties of friendship and cooperation between their countries and are confident that the people of El Salvador and the United States will continue to enjoy the benefits of this close association in the future. The Chief Executives of the two countries recognized that these relationships are based upon mutual respect and upon loyalty to the same principles of democracy and individual rights. The two Presidents noted the fact that the United States and El Salvador continue to stand shoulder to shoulder with those nations of the world acting in defense of these worthy objectives and would continue to strive for peace and justice.

II.

The two Heads of State discussed the problems created for the coffee-producing nations, including the Republic of El Salvador, by the decline of coffee prices in the world market. It was recognized that the health of the economy of El Salvador is heavily dependent upon export earnings for this commodity and that the United States is deeply interested in the situation of the coffee-producing countries. It was agreed that the two countries would continue to work through the Coffee Study Group to seek, in cooperation with principal coffee-producing and consuming nations, reasonable ways of ameliorating the general situation in the world coffee trade.

III.

The President of El Salvador and the President of the United States discussed recent developments in the field of the economic integration of Central America and creation of a common market in that area. It was agreed that the establishment of an economically sound system for the integration of the economies of the Central American Republics and for a common market comprising those nations would be beneficial and would receive the support of the Governments of El Salvador and the United States. The two Presidents agreed that these steps could make a significant contribution to the industrial development of Central America, to the stimulation of capital investment in those nations, and to the steady improvement of the welfare of the people. This subject will receive continued study by the two Governments with a view to taking appropriate action to carry on those sound plans already contemplated.

IV.

The two Presidents discussed the proposals to establish an Inter-American Development Banking Institution and agreed upon the need to act in support of sound plans to establish such an institution. They recognized the need for stimulation of Latin American economic development through increased availability of capital from both public and private sources on a sound basis. It was agreed that such an inter-American institution, when properly established, would be a valuable supplementary source of capital for the nations of Latin America. In accordance with this position the United States would also continue its present loan programs in Latin America.

V.

President Lemus and President Eisenhower were deeply aware of the need for the greatest possible mutual understanding among the American Republics and believe that the understandings reached and the personal relationships developed will contribute to the steady strengthening of the traditionally close inter-American ties.

JOSE MARIA LEMUS

DWIGHT D. EISENHOWER