38. Circular Telegram From the Secretary of State to Certain Diplomatic Missions in the American Republics 1

808. Response repeated requests Latin American Governments naval vessels Defense has developed program loan ships MDAP countries purpose increasing anti-submarine warfare capability. Where feasible desire reactivation cost be paid by recipient country. Reactivation cost destroyer $1.8 million each; submarine $1.3 million; destroyer escort $1.6 million; patrol craft $500,000.

Proposed loan Brazil two destroyers, two submarines, one mine sweeper; Chile two destroyers, two submarines; Colombia two destroyers; Cuba one destroyer escort, one survey ship; Ecuador one patrol craft; Peru two destroyers; Uruguay one destroyer escort.

Desire you together with MAAG Chief determine soonest government interest participation this program and whether government willing pay activation costs. Each government would be required conclude loan agreement and amend secret MDAP plan include ships force basis. You may disclose loan is part overall program but not vessels that countries other than that to which you are accredited would receive.

FYI Consideration will be given activating vessels with MDAP funds but you should avoid leaving any impression this is possibility.

Dulles
  1. Source: Department of State, Central Files, 720.5–MSP/5–2256. Secret. Drafted by Sayre and initialed for the Secretary by Rubottom. Sent to Habana, Lima, Montevideo, Quito, and Santiago; pouched for information only to Bogota and Rio de Janeiro.