Foreign Relations of the United States, 1955–1957, American Republics: Multilateral; Mexico; Caribbean, Volume VI

243. Memorandum From the Acting Assistant Secretary of State for Inter-American Affairs (Rubottom) to the Acting Secretary of State¹

Washington, May 3, 1957.

SUBJECT

• Mexico’s Desire to Purchase Military Equipment under the Reimbursable Aid Program

As you requested, developments in this matter are summarized below:

January 30, 1957: Mexican Minister Sanchez Gavito and Military Attaché Guzman Cardenas called on me to state that Mexico was interested in obtaining an unspecified quantity of military equipment but considered the normal three year credit facilities offered as inadequate. At their request, I promised that the Department would see if any way could be found to provide more favorable credit facilities, pointing out that our policy in this respect was to limit credit to three years.

March 19, 1957: Ambassador Tello called to inform me Mexico had decided that a three year credit would be adequate. The Ambassador offered to furnish a list of Mexico’s requirements in order that necessary authorization could be sought.

March 26, 1957: The list promised by Ambassador Tello was received and found to be identical with one that had been priced at Mexico’s request in 1955. Value of equipment desired was $10.5 million at that time.

April 2, 1957: The Department notified Assistant Secretary Sprague by letter over Mr. Barnes’ signature that it would be in the best interests of the United States to make the equipment available and requested Defense concurrence in recommending the transaction to ICA.

May 1, 1957: Oral notification was received that Defense had concurred in the project and recommended financing of the transaction by MDAP funds to ICA. ICA was contacted and stated that the project was to be submitted to the NAC for consideration before Mr. Hollister would make a final decision.

In view of our long-term objective of getting Mexico to take a more responsible attitude towards defense arrangements with the United States and to participate more fully in the defense of the Hemisphere, I am confident the NAC will report favorably on the project once it has been submitted for consideration.²

1. Source: Department of State, Central Files, 712.5–MSP/5–357. Secret. Drafted by Crockett.
2. According to a memorandum from Crockett to Rubottom dated June 11, a $10 million credit was established for purchase of military equipment by Mexico. The memorandum indicated further that the Mexican Government had notified the Department of State that it planned to use $6 million of the credit. (Ibid., 712.56/6–1157)