816.24/99
The Acting Chief of the Division of the American Republics (Bonsal) to Mr. Emilio G. Collado, Special Assistant to the Under Secretary of State (Welles)
Mr. Collado: The Minister of El Salvador2 spoke to me on July 11 regarding El Salvador’s attitude toward the recent Lease Lend proposal for furnishing arms and munitions. I outlined to the Minister to the best of my ability the general conditions involved. He stated that it has always been the policy of the President of El Salvador3 to avoid assuming any foreign indebtedness. He said that in the matter of arms and munitions El Salvador had always bought her requirements for hard cash but that under present conditions very little was being obtained in this manner.
The Minister understands that a quota of $1,500,000 has been allocated to El Salvador under our Lease Lend arrangement. He would like to have the details of the contract, et cetera. Will you please do the necessary.