822.248/2–1347

The Chief of the Division of Special Inter-American Affairs (Dreier) to the Ambassador in Ecuador (Scotten)

confidential

Dear Mr. Ambassador: I believe a personal letter may be the best way of giving you some background on the rather confused situation, repercussions of which, in Ecuador, were discussed in the Embassy’s despatch No. 4962, February 13. This despatch reported the resentment of officers of the Ecuadoran airforce over the failure to acquire aircraft promised them by the United States in the so-called interim program.

The aircraft in the interim program for Ecuador totaled 22 planes [Page 679] as outlined in the Department’s telegram No. 90 of March 12, 1946.28 Their availability was first mentioned to the Ecuadorans by the Department in March, 1946. Due to protracted delays in connection with the administration of the program under the Surplus Property Act,29 involving determinations of availability, establishment of prices, etc. a formal offer of these aircraft to Ecuador at a specified price was not made until August 27, 1946. Two days later a representative of the Ecuadoran Government sent to the Foreign Liquidation Commission a check for $131,500 to cover the cost of ten of these aircraft, namely, 1 C–47, 3 C–45’s, 6 P–47’s. Deposit of this check was not called for since no contract had been signed but it was indicated by the Ecuadoran representative that he wished to deposit the money any way to insure against its being diverted to other purposes.

At that time, it was not clear at all how long it would take the War Department to put these aircraft in operable condition since they were sealed up, stripped of some equipment, etc. However, it is quite probable that the persons in the Foreign Liquidation Commission who discussed the matter with the Ecuadorans expressed the hope that these ten aircraft would be ready in 60 days, namely, early in November. I am quite confident, however, that no promise or formal statement of availability was ever made to the Ecuadorans since the War Department itself did not know at that time when the aircraft could be delivered.

In fact the War Department has, insofar as I have been able to find out, not yet been able to start work on these aircraft paid for by Ecuador, let alone do anything about the other 12 aircraft in the interim program for which the Ecuadorans recently placed a firm order. It is the practice of the FLC on this interim program not to sign a contract with the purchasing country until they know when the material will be available. So far no contract has been signed by the FLC, I am told, covering the interim aircraft because of uncertainty as to their readiness.

The principal reason for the delay of the War Department in getting around to the Ecuadoran aircraft is that the Ecuadoran Government did not wish to have the aircraft ferried to Ecuador by United States Army personnel as did most of the countries to which such an offer was made. The War Department, anxious to complete the ferrying project, naturally reconditioned first the planes which they had agreed to fly to the purchasing country. Planes ordered by Ecuador, Brazil and Uruguay (the three countries which wanted to fly their planes south with their own pilots) were left at the end of the list and are only now being worked on.

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I have several times talked with the War Department and pointed out the good will which they were losing by failing to make good on delivery of at least some of the aircraft for which Ecuador has already paid. In my last conversation I referred to the report of the Military Attaché30 attached to your despatch under reference, which the War Department had not seen. I am hopeful that when they see it they will make some energetic move to get at least a few of the Ecuadoran planes into flying condition within the next few weeks. However, we have not yet obtained any firm date from them. I do know, moreover, that the Ecuadoran Military Attaché31 has himself been going after the War Department on the matter.

The foregoing will not be of much help to you but will at least give you an indication why all this delay is taking place. We shall, of course, let you know as soon as we hear anything definite from the War Department on the delivery of any of the aircraft which Ecuador is purchasing.

With best regards,

Sincerely yours,

John C. Dreier

P.S. Since writing the above, the Army has informed me that they are putting the Ecuadoran aircraft at the top of the list of those to be reconditioned from now on. They are not, however, able to give a definite date of delivery as yet.

  1. Not printed.
  2. Of October 8, 1944; 58 Stat. 765.
  3. Not printed.
  4. Gen. Luis Larrea-Alba