Office of the Historian

810.20 Defense/3–1247

Memorandum by the Chief of the Division of Special Inter-American Affairs (Dreier) to the Assistant Secretary of State for American Republic Affairs (Braden)

confidential
Washington, March 12, 1947.

Mr. Gange10 informs me that the Inter-American Military Cooperation Bill was again discussed by the Secretaries of State, War, and Navy this morning.

The initiative was taken by Secretary Forrestal who reported that the President, while in Mexico,11 had been asked by the Mexicans when the United States would make available some cruisers and destroyers. The President is reported to have replied that we would be very glad to do this and, when tipped off by an aide that there was no legislation authorizing such transfers, said that if legislation was needed, it would be sought.

Mr. Acheson12 said that the economic study being made of the program revealed that very few countries could afford to take on a program such as the War and Navy Departments have in mind. He said he [Page 105] would see that copies of this report13 were made available to the Secretaries of War and Navy for their study.

The economic report referred to was shown to me in draft form this morning. It concludes that only Cuba, Dominican Republic, El Salvador, Panama and Venezuela could afford the program without serious difficulties. A second group of countries which includes Brazil, Colombia and Mexico could afford it only with difficulty, and for a third group of countries including Chile, Ecuador, Peru and Bolivia, the program was economically out of the question. This report is being given to Mr. Acheson tomorrow via Mr. Thorp. Mr. Gerald Smith14 and I recommended a few changes to point up the undesirable economic consequences on the other countries.

John C. Dreier
  1. John F. Gange, Acting Executive Secretary, Central Secretariat.↩
  2. For an address by President Truman, delivered in Mexico March 3, 1947, see Department of State Bulletin, March 16, 1947, p. 498.↩
  3. Dean Acheson, Under Secretary of State.↩
  4. Not printed.↩
  5. H. Gerald Smith, Special Assistant to Assistant Secretary of State Braden.↩