818.014C/108

Memorandum of Conversation, by the Chief of the Division of the American Republics (Duggan)

The Costa Rican Minister,2 after a rather lengthy introduction, finally got around to reference to the bill introduced by Congressman Izac authorizing the President to purchase the Cocos Islands. After some sparring around, during which I stated that I was sure the Costa Rican Government understood that the bill was not an administration measure, the Minister launched into a discourse about the change in world conditions. He made particular reference to the aggressive designs of Germany, Italy and Japan and to the good neighbor policy of the United States which had, he thought, eliminated from every thinking person in the other American republics, the belief that the United States any longer entertains imperialistic designs against the other American republics. The Minister thought that changed times required a reappraisal of former policies and attitudes. He ventured the question whether the status of the Cocos Islands, which certainly today have a new strategic importance because of aviation, should not be reviewed.

Without indicating any interest, I asked the Minister what he had in mind.

The Minister replied that sentiment in Costa Rica with regard to the Islands undoubtedly had undergone a very considerable change. At present the Government maintained no jurisdiction of any kind over the Islands and the public long ago had come to the realization that the Islands had little value because of their economic resources; while he was not sure, he thought that the Costa Rican people today would approve of the disposal of the Islands to the United States. He intimated that he had discussed this possibility with the President upon his last visit to Costa Rica and that the President had not discouraged this thought. In later conversation the Minister threw out the idea that possibly for the sale or long-term lease of the Islands the proceeds might be dedicated to the construction of the Inter-American [Page 521] Highway.3 At the conclusion of the conversation, the Minister stated that he had recently written to the President sending him a copy of the bill. He indicated that he expected a reply from the President. I said that if there was anything of mutual interest in the reply, I would be very glad to hear from the Minister.

During the course of the conversation in which the Minister did practically all of the talking, I took occasion to state that the traditional policy of this Government had been that it was not interested in acquiring the Islands but that it did feel constrained to interest itself should the possibility ever arise of the Islands passing to a third country. The Minister maintained stoutly that Costa Rica never would alienate the Islands to any country except the United States.

  1. Ricardo Castro Beeche.
  2. See Foreign Relations, 1937, vol. v, pp. 175 ff.