839.113/12–1447: Telegram

The Ambassador in Venezuela (Donnelly) to the Secretary of State

secret

504. I am disappointed developments reported Rio’s telegram 1707, December 13, 11 a.m. to Dept. repeated Caracas.

In spite allegations Brazilian arms destined exclusively defense Dominican Republic, I am convinced Venezuelan Govt genuinely fears at least part of arms will find their way into hands Venezuelan exiles thus increasing danger another attempted coup in cooperation dissident groups here. Venezuelans will probably regard sale as Brazilian favoritism toward Trujillo.

As I have reported, if Morales’ mission fails, there is strong possibility anti-Brazilian press campaign and labor demonstrations here as well as legal and informal embargo on shipments Venezuelan oil to Brazil. If these or similar reprisals should be adopted by Venezuela impossible anticipate all consequences. For example, American and British oil companies would be in difficult position if they were informally requested stop direct and indirect shipments to Brazil Venezuelan crude refined Aruba and Curaçao since they need Govt good will in important forthcoming negotiations for new labor contract and wish to get off on right foot with new Govt.

Venezuelan President and Foreign Minister have stated on two occasions that if US Govt would indicate its desire that Brazilians stop ship such action would be effective. I hope Dept will see way clear immediately inform Brazilian Govt unwisdom shipping arms Dominicans at this time.

Sent Dept 504, repeated Rio.

Donnelly