Office of the Historian

172. Telegram From the Department of State to the Embassy in Argentina1

Washington, March 13, 1959—6:08 p.m.

1077. 1. Following discussion in principle to accede to Argentine request for extension of credit for purchases of military equipment, Department has requested preparation by Defense of military assistance program which meets, inter alia, following criteria:

a.
entire program on credit basis;
b.
total program not to exceed $10 million and to extend over period FY 59 and FY 60.

2. FYI. This limited program being formulated with clear understanding that over-all objectives of U.S. in Argentina, particularly in economic sphere where U.S. already contributing large resources, coupled with U.S. aid stringencies, will require that every effort be made by all U.S. representatives to discourage any additional program or more ambitious military planning beyond that implicit in U.S. credit program, which is premised primarily on meeting political and economic objectives rather than being based on meeting recognized military requirements. End FYI.

3. Washington interagency agreement of details of U.S. offer now in process of being coordinated with NAC, Defense, etc. While Department orally informed Barros Hurtado that it prepared to accede to Argentine request, until specific instructions are forwarded confirming full interagency coordination and details are provided covering timing and conditions of repayment schedule, you should restrict your discussions to basic points noted in paragraph 1 above. At your discretion you may also suggest to Foreign Ministry that Argentina should review their requirements for Army, Navy and Air Force equipment in anticipation of subsequent discussions and specifically with view to tailoring programs either previously requested or discussed with U.S. officials to $10 million availability.2

Herter
  1. Source: Department of State, Central Files, 735.5–MSP/3–1359. Secret; Limited Distribution. Drafted by Burns and initialed by Bernbaum.↩
  2. On April 2, Beaulac informed the Department that he had spoken with the Argentine Foreign Minister about the $10 million program. According to Beaulac, the Foreign Minister indicated that he had received similar information from the Argentine Ambassador in Washington. (Telegram 1404 from Buenos Aires, April 2; ibid., 735.5–MSP/4–259)↩