810.20 Defense/1375

Memorandum by the Adviser on Political Relations (Duggan) to the Under Secretary of State (Welles)21

Mr. Welles: I think that our policy with regard to the acquisition of arms in the United States by Peru and Ecuador under the provisions of the Lend-Lease Act should be as follows:

The initiation of discussions where they have not been begun, as in the case of Ecuador, and the continuance of discussions where they have been started, as in the case of Peru, with the proper authorities for the purpose of agreeing upon the lists of matériel desired by both countries.
Delay in initiating discussions with both countries with regard to the basic lend-lease agreement. This is a little embarrassing, since both countries are aware of the fact that the sample agreement has been given to most other countries. It is not believed that this Government would wish to sign the basic agreement with either country until some arrangement has been entered into which will make improbable the recurrence of hostilities.22

Laurence Duggan
  1. Notation on original: “I agree—SW”.
  2. For correspondence regarding the boundary dispute between Ecuador and Peru, see pp. 212 ff.