Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

718.56/8–2652

Memorandum by John L. Ohmans of the Office of Middle American Affairs to the Officer in Charge of Central America and Panama Affairs (Siracusa)¹

secret

[Washington,] August 26, 1952.

Subject:

• Costa Rican Arms Exchange

Costa Rica finally has taken some definite action in the prolonged arms transaction. Legislative approval was obtained to sell arms up to the value of $100,000 to the Western Arms Corporation. At the moment, however, nothing more than the first shipment of $11,000 worth of antique and obsolescent arms can be shipped until suitable replacement material is received.

The matter has been pending since early in 1951 when Costa Rica desired assistance in obtaining arms from the United States. They did not have funds to purchase them, however. We offered our cooperation and even agreed to grant them a more than favorable price for their obsolescent arms to aid in the purchase. There has been a long delay on the part of Costa Rica in the sale of the old arms, and money originally budgeted for the purchase of arms in the United States was later taken from the budget to be used on public works projects.

In April of this year we asked the Embassy four questions and a short time ago received these answers:

a. Ques. Does Costa Rica wish to purchase all or any part of the arms which the Army offered in accordance with its letter offer of August 30, 1951,² to Ambassador Oreamuno?

Ans. Yes. According to Oreamuno, Costa Rica is interested in purchasing the entire lot of arms listed on the enclosed³ photostatic inventory which are valued at $224,579.50. However, in view of the fact no funds are available this fiscal year, the purchase cannot take place until some time after January 1, 1953. Ulate told Oreamuno he would ask Congress to appropriate the necessary funds at the start of the next fiscal year in January; however Ulate stipulated that he reserved the right to decide when he would place the order spending these funds. Oreamuno added that Congress would probably put a time limit of November 8, 1953 (Inauguration Day) on the spending of this special appropriation.

I advised Oreamuno that it is doubtful whether the Department of the Army will be able to continue to hold available that equipment which has been set aside for delivery to Costa Rica.

b. Ques. If Costa Rica does wish to purchase any or all of the arms, when can its letter of acceptance and payment be expected?

Ans. Not until sometime after January 1, 1953. Although Oreamuno feels that no difficulties or delays will be encountered when Ulate asks Congress for funds for new arms, past experience suggests that a month or more may be required to obtain Congressional approval. On this basis, funds conceivably would not be available until February or March, 1953.

c. Ques. If the arms are purchased, does Costa Rica wish to negotiate with the Western Arms Company for the purchase of the ammunition?

Ans. No. Despite the possibility of lower prices, both Ulate and Oreamuno feel that any purchase of new arms or ammunition should be made from the U.S. Government. Apparently, Ulate is fearful of adverse criticism resulting from any negotiations with a private firm for purchase of munitions, it being noted that previous Administrations have been heavily censored for alleged “dubious” transactions.

d. Ques. Does Costa Rica intend to sell all or any part of its old arms which were tentatively purchased by the representative of the Western Arms Company; if so, when and under what conditions will Costa Rica ship the $11,000 worth of antique rifles?

Ans. Yes. Present plans contemplate sale of all current arms to the Western Arms Corporation as authorized by the contract which was approved by Congress on July 28, 1952. This contract will expire on September 10, 1953. However, nothing more than the first shipment of $11,000 worth of antique arms can be sold until suitable replacement material is received.

The $11,000 worth of antique rifles will be shipped during the last week of August, 1952 according to Colonel Ventura.

Proposed Course of action—We should tell the Army the next time it inquires as to the disposal of the arms set aside for Costa Rica that the possible purchase of arms by Costa Rica is somewhat indefinite and the arms should be released. Costa Rica may seek some additional funds after January 1953 and may attempt to order arms later that Spring. Yet it seems reasonable to assume that the small amount of arms which Costa Rica desires to obtain can be obtained easily from stocks on hand and prepared for fairly prompt delivery.⁴

We may now with confidence sit back and wait further Costa Rican action. The record will show that we have endeavored to facilitate shipment of new arms to Costa Rica in every way that we can.

We can expect possible Costa Rican action early in 1953. At that late date I predict its officials will ask for arms on a rush basis to help assure order during the bitter campaign and vote election. It is also quite likely that there will be a continued effort on the part of Costa Rica to obtain free grant aid as part of the Military Aid Program.

1. Addressed also to George O. Spencer of the Office of Regional American Affairs.
2. Not printed.
3. No enclosure was found attached to the source text.
4. At this point the source text bears the following handwritten marginal notations, initialed by Mr. Jamison: “Can we be sure of this? If we take this action we should so notify the Costa Ricans?”