45. Letter From the Assistant Secretary of Defense for International Security Affairs (Sprague) to the Under Secretary of State (Herter)1
Dear Governor Herter : On January 10, the Department of Defense submitted to the Bureau of the Budget a legislative proposal to authorize the transfer of certain naval vessels to foreign countries. The wording of the legislation is general and provides in essence authority to sell four ships and lend forty-five others through either grant or reimbursable military aid.
While the legislation is general, the proposed actual allocation of ships is specific, and is provided in back-up material planned for use during the presentation to the Committees on Armed Services. Attached is a list2 of the proposed distribution of ships as approved by the Joint Chiefs of Staff and as agreed to by the Departments of State and Defense and the International Cooperation Administration.
On March 21, the Bureau of the Budget returned the legislation with the statement that it would be acceptable provided that the seventeen ships for Latin America, the four destroyers for Spain, and the destroyer escort for Thailand were eliminated. In support of this position, the Bureau of the Budget asserted that: (a) The loans to Latin America were not in consonance with the latest NSC policy on Latin America because the ships were not essential to the military mission of those countries as defined in this policy and would require a sizeable expansion of naval assistance both in terms of initial outlay and subsequent support; (b) pending the outcome of the current review of U.S. policy toward Spain, no authorization for additional aid should be sought; (c) the destroyer escort for Thailand is not essential to the Thai naval mission of internal security.
The Department of Defense takes exception to the interpretation of U.S. policy expressed by the Bureau of the Budget and requests that the Operations Coordinating Board review the proposed ship loan bill and determine whether or not it is within NSC policy.
In support of Defense’s position, the following points are outlined:
(a) As to Latin America, paragraph 32a of NSC 5613/1 sets forth the concept that “…3 each of the Latin American States is [Page 279] responsible for its own internal security and for providing … a contribution to the defense of the hemisphere by the defense of its coastal waters, ports … and routes of communications …”
Paragraph 33 states that the U.S. should “Make available to Latin American states, on a grant basis if necessary, the minimum military equipment necessary to assist them to carry out the limited missions in the foregoing paragraph.”
The Operations Coordinating Board, on March 20, 1957, in concurring in an Outline Plan of Operations for Latin America,4 agreed to “make available to Latin American nations the minimum military equipment necessary to assist them to carry out the limited missions in NSC Paragraph 32 … Be prepared to utilize approximately $40 million of FY 1957 MAP funds to permit such equipment to be made available on a grant basis or on a credit basis in those instances where procurement under the reimbursable provisions (Section 106) of the Mutual Security Act is not feasible.”
Also, on March 20, 1957, the Joint Chiefs of Staff, in a proposed U.S. Military Guidance for Latin America, stated, in part, “… The type of naval forces which will provide the greatest assistance, both in the protection of the country concerned and of the hemisphere in general, are those which possess ASW and anti-mine warfare capabilities.” The ships proposed for loan to Latin America are, without exception, of those types. Concerning the costs involved, although the proposed legislation allows either grant or reimbursable aid, practically all of the loans are proposed as reimbursable aid. In most cases, each of the recipients has agreed to pay the costs of reactivation.
[Here follows a section dealing with Spain and Thailand.]
In view of the importance of this legislation and the urgency of an early submission to the Congress, it is requested that the matter be considered at the next meeting of the Operations Coordinating Board.
Sincerely yours,
- Source: Department of State, OCB Files: Lot 62 D 430, Latin America, January–May 1957. Secret.↩
- Not printed.↩
- These and following ellipses are in the source text.↩
- See Document 17.↩