Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

228. Memorandum of a Conversation, Department of State, Washington, October 23, 1956, 4 p.m.¹

Washington, October 23, 1956, 4 p.m.

SUBJECT

• Military Equipment for Argentina

PARTICIPANTS

• Argentine Ambassador, Dr. Adolfo A. Vicchi
• ARA—Mr. Rubottom
• OSA—Mr. Bernbaum
• OSA—Mr. Vaky

Mr. Rubottom referred to the request for military equipment which had been received from the Argentine Government. Mentioning past indications that Argentina was desirous of receiving grant military aid, he said that it was not possible under present US policy to extend such aid in the absence of a bilateral military pact. He observed that the US fully recognized the factors which for the time being prohibited Argentina from concluding such an agreement and stated that for that reason we had carefully studied other possibilities for making military equipment available to Argentina. He then handed the Ambassador a memorandum outlining pricing and availability estimates on the ground and air equipment which the Argentines requested in their memorandum of May 24.² He indicated that these were approximate estimates; that the prices might be reduced if non-essential items were not purchased or if less expensive items were substituted. He also observed that the more flexible pricing formula contained in recent amendments to the Mutual Security Act³ had not yet been implemented. Once this was done, there might be a possibility of further price reductions. He suggested that the Ambassador might wish to have his Service Attachés discuss with Defense officials the technical details of equipment available; how they might meet their needs; and study details of pricing and availability.

With respect to naval vessels Mr. Rubottom said that State wished to study further with Defense possibilities in this regard, particularly that of loaning the vessels. The matter was still under study and hence he could not give any estimate of what might possibly be done in this regard.

Mr. Rubottom said that he also wished to make clear that even if a bilateral military pact were concluded with Argentina, the amount of military grant aid which could be extended thereunder would necessarily be limited since it would have to fit into the overall hemisphere program. He thought that the Argentine armed services should be fully aware of this. He also indicated that matters such as the Air Mission Agreement or a South Atlantic Regional Pact⁴ would not be a substitute for a MDA agreement insofar as grant aid was concerned.

Mr. Rubottom also handed the Ambassador a summary of the requests that had been made by the Provisional Government and the action taken on each.⁵ He said that it might be useful to consider the record in this case in view of indications that some of the Argentine military leaders are a little restive concerning US response. Ambassador Vicchi said that Argentina did not desire to become a powerful military power nor have the most modem armed forces in Latin America. The Argentine military, however, felt very deeply that it needed new equipment because despite large amounts of money spent on the military by Perón, very little of this had gone into equipment. Consequently, arms were antiquated and in bad shape. The military felt that it must have reasonably good equipment primarily to insure internal order and stability and support for the present government. He said, moreover, that it must be remembered that the present government is essentially a military government and hence the desires of the military for equipment must be considered in that light.

Vicchi said that the Army and the Air Force could buy excess equipment or used equipment, but that in any case Argentina did need ships. Consequently, Argentina was very interested in the possibilities of obtaining vessels on a loan basis. He felt sure that Argentina would agree to specific commitments for the use of these vessels in hemispheric defense missions if such commitments did not have the connotations of a military pact. A bilateral pact, he observed, would be considered by many Argentines as a military alliance and arouse strong domestic opposition.

Ambassador Vicchi said that he would like to bring his three Service Attachés for a discussion with Department officials concerning the general question of equipment acquisition and what the Attachés could or could not do in their discussions with Defense. He said this would have two advantages. It would make the Service Attachés feel that we are all working on the problem and, secondly, that it would serve to clarify the procedures and possibilities and eliminate confusion or mistaken ideas. It was agreed that such a meeting would be held. (This meeting is tentatively scheduled for October 30.) The Ambassador said that if it would be possible to obtain even a small amount of equipment immediately on favorable pricing terms this could tranquilize the anxieties of the Argentine military.

Before leaving the Ambassador pleaded for flexibility in considering these requests. He said that the US tended to be somewhat inflexible at times and referred to what he termed the missing of an opportunity for a great psychological victory in the matter of the Eximbank loan, remarking that inevitably the $100 million credit is compared unfavorably with Italy’s offer of almost unlimited loans. It was difficult, he said, to explain to the man in the street how a $100 million out of a total amount of $1,800,000,000 loaned to Latin America by the Eximbank could be construed as very favorable consideration of Argentina by the US. If Poland asks for aid he is sure that the US will go all out to detach Poland from the Soviet orbit. Similar thinking, he said, should be applied to Argentina where there is a strong focus of sentiment for close understanding and friendship with the US. The US must help strengthen that focus for, if it is weakened, Argentina will return to its previous nationalistic, isolationist viewpoint. He, therefore, asked that we consider these factors in making decisions on requests for military equipment.

1. Source: Department of State, Central Files, 735.56/10–2356. Confidential. Drafted by Vaky.

   In a memorandum to Rubottom, October 16, Bernbaum discussed Argentina’s pending request for military equipment. He recommended that the United States loan naval vessels to Argentina, “since the latter has limited funds to spend on equipment and since grant aid is not feasible. A loan of two submarines and two destroyers is justifiable both militarily and in terms of what we are loaning other Latin American countries.” In the meantime, he suggested, Department officials should meet with Vicchi to explain to him the U.S. position on military aid. (Ibid., 735.56/10–1656)

2. This pricing and availability study was enclosed in a letter from William M. Leffingwell, Special Assistant to the Deputy Assistant Secretary of Defense (ISA) for Military Assistance Programs, to Barnes, dated September 5. (Ibid.)
3. Reference is to the Mutual Security Act of 1954 (P.L. 665); for text, see 68 Stat. 832.
4. On July 31, the Argentine Foreign Office announced publicly that it had extended invitations to Brazil and Uruguay to attend a meeting in Buenos Aires to consider organization for the defense of the South Atlantic.
5. Not found in Department of State files.