Memorandum of Conversation, by Mr. Robert E. Wilson of the Division of Central America and Panama Affairs

Participants: Sr. Don Francisco Linares Aranda, Guatemalan Embassy12
Lt. Col. Offer13
Col. Oscar Morales López
Mr. Charles Kempter
Mr. George Spencer, IA14
Mr. Robert Newbegin, CPA
Mr. Robert E. Wilson, CPA

The meeting was called by Mr. Newbegin, who opened it with the statement that he hoped that at long last it would be possible to make final arrangements on the question of the Guatemalan lend-lease settlement program which had been pending for so many months. Mr. Newbegin said he understood the agreement had finally been reached as to what equipment Guatemala wants under the interim program but that unfortunately, because of the unavoidable delays, some items not desired had already been shipped to Alabama and it is now too late to eliminate them. It will still be possible, however, to eliminate the items not ordered from what remained to be shipped. He said that he understood that the amount of the accessorial charges which Guatemala would now be obliged to pay, taking into consideration the elimination of items not desired, had been reduced to $35,000 and that he hoped that Guatemala would be able to pay this sum promptly so that the whole matter could be brought to an early conclusion.

Turning to Señor Linares, he asked whether he anticipated any difficulty in making a prompt settlement of $35,000. Señor Linares said he could not say, but would consult his Government and hoped to be able to reply at an early date.

Colonel Morales López then asked if this $35,000 was in addition [Page 705] to what had already been paid. Colonel Offer said that it was in lieu of the $110,000 which were to have been the accessorial charges before the undesired items were deleted, and that it brought the total accessorial charges to only $100,000 instead of $175,000 ($65,000 have already been paid). Colonel Morales López then said “O.K., I will pay you tomorrow.”15

Mr. Newbegin said, “Then we all agree that that closes the deal?” All present agreed that it did. Colonel Offer said that of course it might take some time to get the equipment together. Colonel Morales López said they were badly in need of certain of the instruments, parts, tires, etc. and that arrangements would probably be made to have part of the order flown from Mobile to Guatemala City.

The meeting broke up with all participants in good spirits and there was a general feeling of satisfaction that final agreement has been made.

  1. First Secretary of the Embassy.
  2. Lieutenant Colonel Offer of the War Department.
  3. George O. Spencer of the Division of Special Inter-American Affairs.
  4. Col. Morales López enclosed a draft for $35,000 in his letter of December 30, 1947 (not printed), to the Acting Chief, Division of Lend-Lease and Surplus War Property (Shenefield) (814.24/12–3047).