718.5/12–2051

Memorandum of Conversation, by Mr. Fred G. Heins of the Office of Middle American Affairs

secret

Subject: Arms and Ammunition

Participants: Ambassador Oreamuno, Embassy of San Jose.
MID—Mr. Fred G. Heins

In connection with Ambassador Oreamuno’s call at the Department on another matter, I told him we had ascertained as a result of his inquiry of Mr. Mann1 on December 14, that someone would soon be in touch with him, probably early in January, to work out the details for disposing of Costa Rica’s old arms and equipment. I told him it was presently contemplated that an advance payment of $50,000 could probably be made to Costa Rica shortly after January 1st, against title to all of the arms and ammunition now in the hands of the Costa Rican Government.

The Ambassador was pleased with this proposed arrangement and said it would enable Costa Rica to purchase a considerable portion of the new equipment required, because he understands there is already available from other sources, in Costa Rica a total of approximately $110,000 in cash to be used for this purpose. I told him we had been informed by the Army that during the past two months certain of the new equipment for Costa Rica was being received at warehouses, and that the Army was anxious to make deliveries whenever Costa Rica was ready to pay for them.

I told the Ambassador that this whole matter was being handled on a very confidential basis and I understood it was presently hoped, that after all of the old Costa Rican material is received in the U.S. and sold, the total net amount to be paid to Costa Rica from the sale of these materials would be nearly $100,000. The Ambassador said this was in line with previous estimates.

F [red] G. H[eins]
  1. Thomas C. Mann, Deputy Assistant Secretary of State for Inter-American Affairs.