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

414.608/5–2154

Memorandum by the Assistant Secretary of State for Inter-American Affairs (Holland) to the Secretary of State

secret

[Washington,] May 21, 1954.

Subject:

• Detention of Foreign Flagships Transporting Arms to Guatemala.

Discussion:

The Second Mate of the Alfhem, Swedish ship now discharging arms in Puerto Barrios, stated to the U.S. Naval Attaché that two Finnish ships had loaded arms at Stettin for Guatemala at about the same time that the Alfhem was loaded. He stated that one of these ships left Stettin three weeks before the Alfhem and that he saw it off Puerto Barrios on the night of May 14. Our Naval Attaché conjectures that it may be waiting until the Alfhem is unloaded before coming into port itself.

We are advised that the Navy is now carrying out an aerial reconnaissance of the sealanes leading to Puerto Barrios and that it will report any vessels which might be suspected of carrying further arms. The policy which this Government will pursue in the event that such vessels are sighted should be determined now.

We feel that the following steps should be taken in the order stated with respect to any suspicious vessel on the high seas¹ sighted by the Navy:

1. If time permits we should attempt without detaining the ship to persuade its Flag state to order it to divert to Panama for inspection.

2. If time does not permit the preceding step our naval vessels should detain the ship, using force as a last resort, while we attempt to persuade its Flag state to divert it to Panama for inspection.

3. If neither of the two preceding steps is successful then our Navy should, using force as a last resort, escort the vessel to Panama for inspection.

Our action² should be based upon Article III of the Rio Treaty which preserves the inherent right of individual self-defense in case of an armed attack and Article LI of the Charter of the United Nations which provides that nothing therein “shall impair the inherent right of individual … self-defense …”.³

This legal justification rests upon the conclusion that repeated and clandestine shipments of arms from Iron Curtain origin to a destination in this hemisphere amounts to armed aggression at least against the state of destination if not against every American state including ourselves.

While the steps outlined above should suffice to prevent the arrival of another arms-laden ship in Puerto Barrios, we should resolve that additional steps will be taken, if essential, to prevent such an occurrence.

Recommendation:

If you approve the foregoing suggested policy it is recommended that you discuss it with the President and representatives of the Department of Defense in your conference on Saturday, May 22.⁴

If this recommendation is there accepted, we shall undertake to furnish all necessary information to the proper naval authorities so that the operation may be put into effect at once.

1. The handwritten words “on the high seas” were inserted in the source text, apparently by Mr. Holland.
2. Assistant Secretary Holland had outlined the policy recommended in this memorandum at the Secretary of State’s staff meeting held at the Department of State at 9:15 a.m. on the previous morning. The notes of the meeting, dated May 20 and designated SM N–230, read in part as follows: “Mr. MacArthur asked whether it would be feasible to secure the action of some other western hemisphere government in making the moves against the shipment of arms. Mr. Holland said that his inclination was to assert the responsibility of the accepted position the US holds in this hemisphere. Any other procedure he felt would fool no one and cause the US to look weak and ridiculous. He agreed that his feelings in the matter would not preclude the possibility of joint action.” (Secretary’s Staff Meetings, lot 63 D 75)
3. Ellipses in the quotation appear in the source text of the memorandum.
4. The source text bears the initials of Secretary Dulles, indicating his approval of the policy recommended by Assistant Secretary Holland, and also the following handwritten notation by the Secretary: “Cleared with President May 22, 1954, at conference with Secy. Anderson[,] Admir Radford[,] Allen Dulles[,] and Bobby Cutler.” See infra.