818.24/6–948
Memorandum of Conversation, by the Chief of the Division of Central America and Panama Affairs (Newbegin)
Ambassador Esquivel1 informed me this morning … he felt that lend-lease had not been a good thing for certain of the other Latin American countries, and that they had obtained arms and ammunition which they did not really need. He felt that this was particularly true in the case of Costa Rica. In this connection, he said that the new Costa Rican Government had discovered that the arms used against it in its recent successful revolution had been in part of lend-lease origin. Immediately upon coming into office the new Government was faced with a debt for lend-lease material which hardly seemed fair. In reply I told the Ambassador that I was not sufficiently familiar with the situation at the time to be able to judge the lend-lease act, but it was my opinion that the arms supplied to various Latin American countries had been supplied at the request of their governments and on the basis of what those governments considered necessary for their defense. I pointed out further that the arms had been furnished on most advantageous terms, and that, furthermore, although the money involved was important in the case of Costa Rica, it was nevertheless a very small amount.
[Page 529]The Ambassador was informed further that this matter had been discussed with Ambassador Gutiérrez shortly before the outbreak of hostilities in Costa Rica. It had been suggested, at that time, that possibly this Government could consider payment of the lend-lease debt in colones rather than in dollars if the Costa Rican Government felt that such an arrangement would facilitate payment. In any case, the Department would be glad to give sympathetic consideration were a request of this nature made. For his background information, the Ambassador was told that the colones could be used locally in connection with the FBO program. The Ambassador countered with a suggestion that maybe Costa Rica could supply wood and other building materials rather than make payment in colones. I told him that I did not believe this would be a practical arrangement, or that it could be given serious consideration by the Department. He then asked whether payment of the outstanding debt could be made in installments. On this, I told him that I was unable to give him definite information, but I thought it might be possible, and that the Department would be glad to take under advisement any suggestions which Costa Rica might care to make.
I believe that although the lend-lease debt is not viewed with much sympathy by the present Costa Rican Government the Ambassador did recognize it as a legitimate obligation which would have to be met, and that we may expect further suggestions from him in the not too distant future.
- Mario A. Esquivel, Costa Rican Ambassador in the United States.↩