32. Memorandum From the Assistant Secretary of State for Inter-American Affairs (Holland) to the Deputy Assistant Secretary of State for Inter-American Affairs (Lyon)1

SUBJECT

  • Military Programs in Latin America

I have read and returned to you your memorandum of April 11 on our military programs in Latin America.2 Attached also is the draft of letter from Murphy to Gray.3

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I do not have the feeling after reading these papers that we ourselves have a view as to the outer limits of the problem. Perhaps I am wrong but I have the feeling that we are going directly to components of the larger problem, and without defining their relationship to each other.

I had hoped that this larger problem could be defined in conferences with Defense. Apparently that is not possible. Perhaps the best substitute is to submit to Defense our ideas as to the broad definition of the problem. That might lead them to agree or disagree with our views, thus eventually leading us to an accord.

The statement I have in mind could be worded somewhat as follows:

General Objectives of Military Programs in Latin America

1.
Hemispheric defense
2.
Internal security
3.
To orient military leaders in Latin American governments toward the United States (dubious)
4.
Standardization of Latin American military equipment (dubious)

If the foregoing are in fact the objectives of our military programs, then we should define the hemisphere defense units that we actually want from the Latin American countries and we should define the nature of the units required for internal security. It would also be necessary to reach a decision once and for all on how much military aid we are going to put out for political purposes, and how far we are willing to go to try to outbid other suppliers in order to achieve standardization of arms.

Programs to Achieve Objectives of Military Aid

1.
Grant military assistance
2.
Sales of military equipment for credit
3.
Sales of military equipment for cash
4.
U. S. military missions in Latin America
5.
Training of Latin American officers in the United States

Under each of these programs, and any others that I have overlooked, we should analyze just what contribution it is expected [Page 246] to make toward the achievement of the basic objectives, we should also analyze just what can be done under each program. In other words, what credit terms will be offered; what prices on cash sales; what delivery dates; what types of equipment will be made available; whether ships are to be lent, and all the other things that we have been bickering about for the past two years.

Some such presentation as that outlined very roughly above would enable us to consider each of the different things that we have had under discussion, but to do it with some idea of the relationship of that problem to all of the other problems that we have under discussion, and an idea of its relationship to the basic objectives that we are trying to achieve.

  1. Source: Department of State, Central Files, 720.5/4–1156. Secret.
  2. This memorandum concerned the status of efforts by the Bureau of Inter-American Affairs to obtain from the Department of Defense a clear definition of U.S. military objectives in Latin America. In the memorandum, Lyon informed Holland that the Navy had completed a draft comprehensive naval program for Latin America and was prepared to refer it to the Joint Chiefs of Staff for approval, but that the Army and Air Force were still working on a review of their respective programs. He also stated the following: “We are still endeavoring to obtain agreement on criteria and procedures, and to find a source of funds for credit sales of military equipment. E has few objections to our proposals on how a credit program should be operated if we are to have a credit program. E is opposed to the established policy calling for credit and is therefore unwilling to agree to proposals designed to obtain an assured source of funds as Mr. Hoover requested in May 1955.” (Ibid.)
  3. Not found with the source text, but see Document 35.