22. Memorandum on Substance of Discussions of Department of State–Joint Chiefs of Staff Meeting, the Pentagon, Washington, April 15, 1955, 11:30 a.m.1
[Here follows a list of those present (26) at the meeting. The Department of Defense was represented by 17 officers, the Department of State by 8, and the Central Intelligence Agency by 1. The ranking members of the Defense delegation were Admirals Radford and Carney and Generals Ridgway, Shepherd, and White. Murphy and MacArthur headed the State delegation.]
1. Military Aid Program in Latin America
Mr. Murphy inquired about the status of the reply to the Secretary of State’s letter to the Secretary of Defense dated November 15 which raised various questions about the U.S. military aid program to Latin American countries.
Admiral Davis stated he understood this issue rested between Mr. Holland and Mr. Hensel who were in sharp disagreement on the subject. Mr. Holland believes we should not give weapons to the Latin American countries because they will fight each other. Mr. Hensel, on the other hand, feels the program should go forward in support of the relevant NSC decision. When Mr. Hensel raised this point, Mr. Holland, according to Admiral Davis, said in that case we would have to get the NSC decision changed.
Mr. Bowie stated that while he was not familiar with the details of this disagreement, he understood Mr. Holland did not object to the provision of military equipment but was concerned about the financial arrangements and feared that if the Latin American countries obtain the arms through long term credits these would prove too much of a burden for their economies. Admiral Radford interjected that the provision of credits seemed necessary since the equipment could not be supplied free out of military aid appropriations. Mr. Hensel has written to the Export-Import Bank asking if the Bank would extend credits for this purpose.
Mr. Bowie reiterated his opinion that Mr. Holland’s concern was with the financial arrangements and that he preferred a three-year credit to a seven-year credit which apparently has been proposed.
Admiral Radford concluded this discussion by stating that the Joint Chiefs were not concerned with the financial aspect of the matter, that the issue rested with Hensel and Holland, and that the next move was up to Mr. Holland.
[Page 221][Here follows discussion of agenda items 2–4: “Military Cooperation between Yugoslavia and the Free World—Interim Report”, “Middle East Defense”, and “Financial Support, FEC”.]
- Source: Department of State, State–JCS Meetings: Lot 61 D 147. Top Secret. The source text bears the following notation: “State Draft. Not cleared with any of the participants.”↩