822.24/12–247

Memorandum by Mr. George H. Owen of the Division of North and West Coast Affairs 42

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While General Larrea Alba was Ecuadoran Military Attaché in Washington he bought $571,000 worth of maintenance parts under so-called “post V–J lend lease” contracts, payable in full and in cash. We were informed by the Chief of the U.S. Military Mission in Ecuador43 that, in doing this, Larrea exceeded instructions from his government not to spend more than $150,000.

All the matériel involved has been delivered to Ecuador. The Treasury has sent bills for the total amount to the Ecuadoran Military Attaché. No reimbursement has been made and no word received concerning this matter from the Ecuadoran Government. Our last instructions to Embassy Quito were that we will not give consideration to reduction of the bill until Ecuador makes a formal request in this regard. (Department’s instruction no. 1958, August 19, 1947).44

Mr. Kempter of Lend-Lease has now suggested that, since FBO state they can use $500,000 in sucres (in addition to $500,000 OFLC surplus property credit extended to Ecuador reimbursable in sucres and available to FBO) for the Embassy building program in Ecuador, we direct the attention of the Ecuadoran Embassy in Washington to the existence of this account and mention the possibility of our accepting payment in sucres. No commitment would be made, but we would give the Embassy opportunity to request instructions.

General Larrea is no longer Military Attaché and is now Chief of Staff of the Ecuadoran Army.

I agreed with Mr. Kempter that the next time I see Señor Arosemena, Ecuadoran Chargé d’Affaires in Washington, I would mention the matter in accordance with the foregoing.

Please indicate approval.

  1. Addressed to Sheldon T. Mills of the Division of North and West Coast Affairs, Messrs. George O. Spencer and John C. Dreier of the Division of Special Inter-American Affairs, and Robert F. Woodward of the Office of American Republic Affairs.
  2. Col. John F. Stodter.
  3. Not printed.