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

37. Letter From the Assistant Secretary of Defense for International Security Affairs (Gray) to the Deputy Under Secretary of State (Murphy)¹

Washington, 11 May 1956.

Dear Mr. Murphy: I refer to your letter of 7 October 1955² in which you requested that the Department of Defense give consideration to the loan of naval vessels to certain Latin American countries.

The Joint Chiefs of Staff, after taking into consideration the political, military, and economic conditions of each country, have concluded that the loan of U.S. naval vessels to certain Latin American countries would make an important contribution to hemispheric defense. Accordingly, the Joint Chiefs of Staff have recommended the approval of a comprehensive program of ship loans to certain Latin American countries. I approve the program submitted as Inclosure 1.³

You will note that the cost of the ship transfers for the countries involved is $24,920,000. The Joint Chiefs of Staff favor that the recipient countries bear this cost under the reimbursable assistance program. However, your attention is invited to the fact that all the recipient countries have signed bilateral military assistance agreements with the United States and in cases where the recipient country is unable to defray the necessary expenses of ship reactivation and transfer it is planned to utilize grant aid funds commencing with the FY 1958 MDA program.

Although the program for the loan of naval vessels does not take into consideration requests from Venezuela and Argentina, it is the Department’s intention to consider future requests from these two countries on a case-by-case basis.

Prior to requesting Congressional approval, it is requested that the Department of State determine the views of the proposed recipient countries. It is suggested that this be ascertained by coordinated action between the U.S. Ambassador and the Chief, MAAG, of the specified country. In the case of Brazil, it is further suggested that the proposed loan of two destroyers and minesweeper instead of an aircraft carrier requested by the Brazilians be used in negotiating with the Brazilians for additional base facilities desired by the U.S., if in your opinion, this is deemed appropriate.

Sincerely yours,

Gordon Gray

1. Source: Department of State, Central Files, 720.5621/5–1156. Secret.
2. Document 27. In an interim reply to Murphy’s letter dated April 16, Gray wrote that the Joint Chiefs of Staff and members of his office had under serious consideration the question of loaning naval craft to certain Latin American countries. He further stated that “the President’s signature on 4 April to a bill authorizing the loan of the two submarines you mentioned to Brazil is an indication of a step in the direction you are advocating.” (Department of State, Central Files, 720.5–MSP/4–1656)
3. Not printed.