176. Letter From the Deputy Assistant Secretary of Defense’s Special Assistant (Leffingwell) to the Under Secretary of State for Economic Affairs (Dillon)1
Dear Mr. Dillon: In reply to your letter of March 6th2 concerning military assistance to Argentina on a credit sales basis, the Department of Defense would not object to a program of the nature and scope proposed, provided some means is found for its financing other than by deferral of programs now planned to meet priority military requirements. As you know, no provision has been made for this program in either the FY 1959 or FY 1960 Military Assistance Program, and it appears necessary that funds be obtained either by transfer from the President’s Contingency fund, or by deferral of other programs which have been planned primarily to fulfill political objectives.
The preparation of a specific military assistance program to meet the objectives stated in your letter requires that full consideration be given to the desires of the Argentine Government. As you are aware the Government of Argentina has submitted requests in excess of $10 million for F86 aircraft, army equipment, and the ships included in the shiploan program. Therefore, the preparation of a military assistance program to meet the stated objectives will require the resubmission by the Government of Argentina of requests tailored to fit within the amount or credit which the United States proposes to provide. It is recommended that the Argentine Government be advised that the United States is considering a limited credit program and request that they submit a list of requirements to meet their most critical needs in consideration of outstanding requests already submitted.
Sincerely yours,
- Source: Department of State, ARA/EST Files: Lot 61 D 386, Sale of Arms & Munitions January–June 1959. Secret. No drafting information appears on the source text.↩
- Document 171.↩
- Printed from a copy that bears this stamped signature.↩