831.24/81

Memorandum by Mr. Livingston Satterthwaite of the Division of the American Republics to Mr. Emilio G. Collado, Special Assistant to the Under Secretary of State ( Welles )

Mr. Collado: Some time ago Mr. Berle asked me to explore the possibility of acceding to Ambassador Escalante’s request that the Lend-Lease arrangement with Venezuela be confined to the canalization of the Orinoco, building of strategic roads and airports, and so forth, rather than military equipment which Venezuela did not need or want, especially as it considers that its defense will be amply taken care of by the ring of bases in the Caribbean.

I understand that for legal and other considerations Lend-Lease funds cannot be used in the manner suggested by the Venezuelan Government. Mr. Berle will, I believe, wish to explain to Ambassador Escalante why the suggestion of the Venezuelan Government cannot be entertained. Can you (Mr. Collado) explain this to Mr. Berle in order that he may pass it on to Dr. Escalante.