Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

422. Memorandum of a Conversation, Department of State, Washington, March 18, 1955¹

Washington, March 18, 1955

SUBJECT

• Military Aid for Colombia; Eximbank mission to study Paz de Rio

PARTICIPANTS

• Ambassador Eduardo Zuleta Angel
• Assistant Secretary Holland
• Mr. Gerberich—OSA

The Ambassador came in at Mr. Holland’s request. Mr. Holland informed him that he had done his best to help him in obtaining additional grant military assistance, but has run up against a stone wall. He said he was informed at the Pentagon that the Colombian request (aside from the meteorological station and air bases) totals about $150 million, more than the total amount allocated for the entire Latin American area. If everything the Colombians wanted was figured in, the total would run higher than our entire worldwide military assistance program for fiscal year 1955.

The Ambassador said he was not aware of all this, and asked if Mr. Holland could tell him just how much the Pentagon is willing to give the Colombians. He outlined what they have already been given under the MDA program, which he hinted was a very modest contribution. Mr. Holland said that the Pentagon did not promise to give favorable consideration to any additional grant military assistance; it pointed out that it recently approved the retention by the Korean Battalion of all the equipment furnished to it by the United States, which resulted in a sizable increase in the MDA program for the Colombian Army. He said the Pentagon at the same time said that it would be happy to assist the Colombians as far as possible in obtaining additional military equipment from commercial sources in the United States. The Ambassador asked if it would not be possible to inquire once more at the Pentagon whether it is inclined to give consideration to a certain amount of grant aid in addition. Mr. Holland said he would willingly take up the subject again, but he could not guarantee any satisfactory results.²

Mr. Holland said he had better news for the Ambassador on the Paz de Rio steel plant.³ The Eximbank has decided to send a mission to Colombia on March 26th to make a study, and it would be well to make sure that the best informed persons on industrial, commercial and financial matters meet with its members. He also observed that the Ambassador is planning to be in Bogota at the same time, and he could doubtless be of considerable personal assistance. The Ambassador said he would certainly do all in his power to facilitate the mission’s labor. He is having lunch tomorrow with Mr. Brand,⁴ who is heading the mission.

1. Source: Department of State, Central Files, 721.5–MSP/3–1855. Confidential. Drafted by Albert H. Gerberich. Initialed by Holland.
2. In a meeting with Holland on March 23, Zuleta presented a modified military aid request. The Ambassador stated that Colombia wanted two destroyers and equipment for one marine and two infantry battalions. Holland said he would convey these requests to the Department of Defense. (Memorandum of conversation by Gerberich; ibid., 721.5–MSP/3–2355)
3. In a conversation on March 11 with Holland, the Ambassador expressed his displeasure over delays by the Export-Import Bank in processing Colombia’s steel plant loan application. Holland promised to discuss the subject with Bank officers. (Memorandum of conversation by Gerberich; ibid., Holland Files: Lot 57 D 295, Colombia)
4. Vance Brand, a Director of the Export-Import Bank.