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

576. Memorandum From the Assistant Secretary of State for Inter-American Affairs (Holland) to the Under Secretary of State (Hoover)¹

Washington, September 10, 1956.

SUBJECT

• Pending Problems with Venezuela

In view of the current interest in the Suez situation, its possible implications for the free world’s supply of petroleum, and Venezuela’s position as a leading supplier, this paper provides information on pending problems that might affect adversely our good relations with Venezuela.

Activities of Venezuelan Exile Against Venezuelan Officials

President Pérez Jiménez and other officials have expressed extreme displeasure over the activities of Mariano Arcaya, a Venezuelan exile residing in New York City. Arcaya instituted separate actions in the U.S. courts against Venezuelan Consul General Páez in New York and Venezuela’s Director of National Security, Pedro Estrada. Arcaya also allegedly has written to senior Venezuelan military officials, urging their action against the government. Regarding the two libel suits, we have cooperated with the Venezuelan Government in informing the court of the Consul General’s diplomatic status; we are examining a copy of the complaint filed against Estrada, to determine whether we might seek to have the action stopped. We have examined a signed original letter allegedly written by Arcaya to Venezuelan military officials but found no violation of U.S. laws. (See Tab A.)²

Residence in Puerto Rico of Rómulo Betancourt; His Alleged Complicity in Plot

The President and other officials have renewed their objections to the residence in Puerto Rico of ex-President Rómulo Betancourt, head of the outlawed opposition party Acción Democrática. An official statement released on August 9 claimed Betancourt directed a recently discovered plot to assassinate President Pérez Jiménez. Our Embassy expressed surprise that the allegation that the plot was directed from Puerto Rico was made public without prior consultation with us, and invited the submission of evidence of Betancourt’s complicity. (See Tab B.)³

Venezuela’s Request for Military Equipment

During the Military Staff Talks concluded in March, Venezuela requested a substantial quantity of U.S. equipment over a period of ten years, with repayments from 7–½ to 10 years. Venezuela believes we have made a commitment to supply the equipment, and her ratification of the Results of the Talks is contingent upon substantial compliance. Venezuela’s request is under consideration with Defense. (See Tab C.)⁴

Conclusion

The military equipment problem poses the greatest strain on our relations with the Venezuelans, who view our action in this matter as an indication of whether we really want good relations.

1. Source: Department of State, Central Files, 731.00/9–1056. Secret. Drafted by Carl E. Bartch of the Office of South American Affairs.
2. Not printed. Additional documentation on the Arcaya case is ibid., 711.31.
3. Not printed. Additional documentation on the Betancourt case is ibid., ARA Files: Lot 56 D 685, Betancourt, Romulo.
4. Not printed. The concluding paragraph of Tab C reads: “At the Staff Talks, the U.S. Military representatives told the Venezuelans that the U.S. is prepared to sell military equipment for cash or on credit terms of up to 3 years and to consider on a case by case basis Venezuelan requests for credit terms of more than 3 years. The Venezuelan Government considers that the U.S. military representatives made a commitment to sell equipment on credit.” Additional documentation is ibid., Central File 731.56.