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

96. Telegram From the Acting Secretary of State to the Embassy in Nicaragua¹

Washington, May 4, 1956—6 p.m.

214. Urtel 247.² Although type of action requested not entirely clear following is Dept’s feeling with regard purchase arms by Nicaragua.

US has no objection delivery small number tanks Nicaragua and has authorized purchase in US four tanks which have already have been contracted for by GoN.

Dept sees no need for Nicaragua or any other Central American country to obtain more than approximately this number since more are not required for legitimate defense purposes. Delivery sixty tanks or any other proportionately large number to Nicaragua would undoubtedly cause alarm in neighboring republics and work against peaceful settlement regional issues still outstanding.

Dept cannot understand necessity for Nicaragua act as agent for third parties, if this implied, since there are established channels for all legitimate arms purchases. Canadians will be informed along these lines.

If this not case, Dept finds difficult understand how economy of Nicaragua can stand purchase quantity tanks at same time Nicaragua urgently requesting Public Law 480 sales by US in view anticipated dollar shortages this year. This request now being reconsidered because of emphasis on need by Nicaraguan Embassy here.

You may at your discretion inform Somoza that US would view with concern arrival sixty tanks Central America, that Dept does not understand need for Nicaragua to act for third parties and that this could cause unfavorable international comment. You may also say that large expenditures arms this time may jeopardize chances PL 480 sales to Nicaragua. Regarding possible cancellation order four tanks Army would deduct from refund any expenses it has already incurred.³

Hoover

1. Source: Department of State, Central Files, 717.561/5–256. Confidential; Priority.
2. In telegram 247 from Managua, May 2, the Embassy transmitted a statement by President Somoza which reads in part: “Sometime ago our Washington embassy tried to purchase 60 Sherman Grizzly tanks from Canada.” According to the telegram, Somoza stated further that Nicaragua now wished to cancel an order to buy $88,000 worth of tanks from the United States and wanted to purchase tanks from Canada instead. (Ibid.)
3. In a letter to Ambassador Whelan, May 7, Park F. Wollam reiterated the points made in this telegram. The letter reads in part: “If Nicaragua were to spend a large sum of money for tanks, which we feel are not needed for legitimate defense purposes, this would undoubtedly be taken as an indication that Nicaragua has little need for P.L. 480 sales. There is no assurance that a P.L. 480 program can be worked out anyway, but its chances would probably be negligible if Somoza buys tanks in the quantities described.” (Ibid., 717.561/5–756)