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

443. Letter From the Secretary of Defense (Wilson) to the Secretary of State¹

Washington, November 23, 1955

Dear Mr. Secretary: In my two letters of January 28, 1955² to you regarding the financial responsibility for logistic support provided by the Navy to Colombia and Thailand naval vessels in connection with their participation in the United Nations action in Korea, it was pointed out that no reimbursements have been received from either country for support provided and that continuing support was being provided at a cost to the Navy of about $20,000 per month for each country. It was requested that the Department of State look into the matter of the ability of the recipient countries to pay, and it was suggested that an effective date be established after which the Colombian Government would commence paying currently for support requested.

Deputy Under Secretary of State Murphy’s reply of February 14, 1955³ states that, in view of some questions as to the authority of the President, it is impracticable to initiate negotiations in such cases as Colombia and Thailand where it is known from their economic situation or previous discussions with the governments that the prospects of full payment are poor.

Some of the countries have currently been paying amounts owed without need for action by the Department of State, and in some other cases action has been taken by the Department of State. However, because delay in seeking proper reimbursement from nations who were provided logistic support by the United States in connection with the United Nations action in Korea diminishes the likelihood of securing repayment, and because of the important precedent being created in connection with this aspect of United Nations police actions, additional action appears desirable.

The policy under which the support was provided was that the recipient country would recognize an obligation for payment to be settled preferably by prompt payment in dollars or if that was not practicable the manner and time of settlement would become the subject of later negotiation between official governmental representatives. It is understood that the only exception approved by the President to this policy was the case of India.

It would seem that regardless of the question of the clarity of the authority of the President, it would be both proper and business-like to proceed with analysis of the ability of the various countries to pay on immediate or deferred terms the amounts they owe. Additionally, it would appear that discussions could properly be undertaken with all countries with potential ability to pay in order to determine the manner in which they are willing to discharge their obligation. There would not seem to be a need for the United States initially to make any commitments in such discussions to accept less than full payment under deferred terms even though it might be felt in some cases that some scale-down in amount was justifiable. Such discussions could be on a basis that any arrangements other than payment of the full amount due, either in a lump sum or over a reasonable period of years, would have to be reported to the President for consideration and decision—which would be made later in the light of the conclusions in process as to what authority exists or will be sought by legislative action.

It seems apparent that some of the countries listed in the attached summary⁴ of the value of logistic support furnished could afford to settle their obligations without undue financial disturbance. My thought, therefore, is that action should be initiated to develop appropriate financial information, and to open discussions at least with the countries who can obviously afford to make payment, and ultimately with all in order to avoid the undesirable further lapse of time.

The Department of Defense stands ready to provide assistance in achieving these objectives.⁵

Sincerely,

C.E. Wilson

1. Source: Department of State, Central Files, 721.5621/11–2355. Confidential. Copies of this letter were sent to the Secretary of the Treasury and to the Director of the Bureau of the Budget.
2. See footnote 2, Document 421.
3. Document 421.
4. Not printed.
5. In a letter dated December 22, Deputy Under Secretary Robert Murphy, writing for the Secretary of State, responded to this letter from Secretary Wilson. With respect to Colombia, Murphy wrote: “It has been made clear by representatives of the Colombian Government that it does not consider that it has a firm obligation to the United States, that it will regard a demand for full payment as an unfriendly act on our part, and that it does not consider itself able to pay the amount claimed.”

   Murphy concluded that, without appropriate congressional legislation, “we can actively seek settlements only in cases where, considering all the pertinent factors, the United States is prepared to press for and can reasonably expect to obtain agreement on full payment.” (Department of State, Central Files, 721.5621/11–2355)