831.24/53a: Telegram

The Acting Secretary of State to the Ambassador in Venezuela (Corrigan)

136. The Department on July 18 handed to the Venezuelan Chargé d’Affaires8 a draft of basic agreement for the lend-lease program of transferring military matériel to Venezuela. The principal financial provisions are as follows: Venezuela is to receive a total of $20,000,000 of war and navy matériel of which it is expected $5,000,000 of army matériel and $1,000,000 of navy matériel will be transferred during the fiscal year ending June 30, 1942. This delivery date is subject to change if broad defense considerations so require.

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With respect to repayment Venezuela is expected to pay $1,500,000 in each fiscal year until 1947, making a total of $9,000,000 to be repaid prior to June 30, 1947. In consideration of the broad objectives of the program and of certain very general economic concepts, the entire obligation of Venezuela to the United States would be considered discharged by such payments.

  1. Arturo Lares.