469. Memorandum From the Special Assistant to the Secretary of State for Mutual Security Affairs (Nolting) to the Director of the Office of Military Assistance, International Security Affairs, Department of Defense (Wilson)2

SUBJECT

  • Request Involving Purchase of Military Equipment under the Mutual Security Act of 19543

Enclosed is a copy of a communication dated April 1, 1955,4 from the Chief of MAAG,5 in Ecuador, which indicates that the Ecuadoran Minister of Defense6 desires to purchase thirty-two aircraft, of various types, provided that the equipment can be purchased on credit.7 This information confirms recent reports submitted by our Ambassador in Quito8 that Ecuador desires to buy aircraft on credit terms.

The Department of State approves, from an economic and political’ viewpoint, the sale of this equipment, for cash, under the legislative authority of Section 106 of the Mutual Security Act of 1954. This approval is subject to any patent or proprietary rights and security considerations that apply to the specified material or services, [Page 953] as may be subsequently determined by the Department of Defense.

As soon as the Department of Defense determines the total price of the equipment requested, the Department of State will indicate its views with regard to the desirability of selling the equipment to Ecuador for credit.

Frederick E. Nolting, Jr.9
  1. Source: Department of State, Central Files, 722.5–MSP/5–255. Secret. Drafted by George O. Spencer.
  2. For text of P.L. 665, see 68 Stat. 832.
  3. Not printed.
  4. Col. Daniel A. Ranney, USA, Chief of MAAG in Ecuador.
  5. Pedro Menendez Gilbert.
  6. In telegram 140 to Quito, March 29, 1955, the Department of State requested that the Embassy “advise Ecuador submit list specific items desired so Defense may ascertain total price and determine whether credit can be financed.” The telegram further stated: “Since decision depends ability resolve financing and other problems Ecuadorans should be given understand U.S. willingness receive list for consideration by no means constitutes U.S. approval.” (Department of State, Central Files, 722.5–MSP/3–2255)
  7. Sheldon T. Mills.
  8. Printed from a copy which bears this typed signature.