The Secretary of State to the Acting Secretary of State
[Received 7 a.m.]
Victory30–150. Filed 210711Z. For Rockefeller and Fetter31 from Clayton and Collado.32 We have considered ARA memo of July 1033 and Dept’s tel No. 49 regarding the effect on Latin American programs of the President’s Lend-Lease directive of July 5. It is our view that the directive is entirely consistent with the policy statement recently approved by the staff committee that Lend-Lease shall be used only with a military certification of its essentiality in the prosecution of the war against Japan.
With respect to the specific cases raised there is of course no question regarding the eligibility of items necessary to equip such Mexican and Brazilian forces as participate directly in the Pacific Theater. Moreover, Lend-Lease may properly [be] used as a means of returning home the Brazilian Expeditionary Force from Italy as well as other military personnel in training in the U.S.
We had already agreed with FEA that the present addition to the original airplane engine factory should be paid for in cash by Brazil. If any small finishing touches are needed to complete the original project, they may properly go forward under the Lend-Lease agreement, as may also the completion of the ammunition plant in Mexico. We understand that there are virtually no other items pending under the old FEA program and the Department some time ago instructed FEA not to undertake new Lend-Lease programs nor to request a 1946 budgetary appropriation for Latin America.
These are our personal views. It will not be possible to take these matters up with the President during this conference. We have not [Page 247] discussed these particular points with the Secretary, but we believe they are in general agreement with his understanding of the July 5 directive. [Clayton and Collado.]