Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

EC–1. Letter from the Assistant Secretary of State for Inter-American Affairs (Rubottom) to the Ambassador in Ecuador (Ravndal)¹

Washington, February 7, 1958

Dear Chris:

I refer to your letters of December 16, 1957 and January 17, 1958² regarding Ecuador’s application to purchase from the United States on a credit basis four T–34 training aircraft and runway lighting equipment for the Taura Air Base. You enclosed correspondence from Colonel James O. Robinson, Jr., Chief of the United States Air Force Mission to Ecuador, requesting the Department’s support of the Ecuadoran application.³ Colonel Robinson stated that the above equipment was critically needed in Ecuador as no night jet training could be accomplished at Taura until lights should be installed, and the Ecuadoran Air Force could not start its own flight training program until a suitable transition trainer such as the T–34 should be available.

We have been working hard on this matter ever since the Ecuadoran application for the equipment was received by the Department on September 27, 1957. My reply to your letters on the subject has been delayed until the actual status of the application could be clarified. Here, in brief, is what has happened and how the matter stands at present.

When we forwarded the Ecuadoran application to the Defense Department we recalled that Defense had previously informed us that it did not consider the provision of T–34 aircraft on a grant basis to be consonant with existing military assistance program objectives, but that it would give favorable consideration to a request to purchase primary trainer aircraft of a type which would be suitable and available. We noted that in her present difficult fiscal situation Ecuador might be better advised to devote her limited resources for military expenditures to support of T-33 aircraft which she already had and F-80 aircraft which we were committed to supply her in the near future. We also noted that Ecuador had been unable to liquidate outstanding accounts for the transportation of personnel of the United States Army and Air Force Missions, which exceeded $300,000. We stated that in view of Ecuador’s fiscal situation we would be reluctant to approve the request for T–34’s even on a cash basis. We understood that four T–34’s and spare parts for one year would cost as much as $250,000. However, we requested that the Defense Department, if it considered that Ecuador had a military requirement for primary trainer aircraft, suggest a type which would be suitable and would be available at a lower cost to Ecuador.

With regard to the lighting equipment, we understood that it was to be used in connection with activities of the International Geophysical Year in which the United States would participate. We noted that if our understanding was correct it would be in the interest of the United States for Ecuador to obtain the equipment. Therefore, we started, if the Defense Department considered that credit should be extended to cover this purchase, we would concur in a recommendation to the International Cooperation Administration that an appropriate credit be established.

It was not until shortly before the receipt of your letter of January 17 that we received a reply from Defense on the above matters.⁴ Defense indicated that the T–34 would be suitable for the intended use by Ecuador and that no other suitable trainer would be available. Furthermore, four T–34’s would cost about $178,000 and would be economical to operate. Defense approved sale of the four T–34 aircraft and the lighting equipment to Ecuador on appropriate credit turns under Section 106(b) of the Mutual Security Act of 1954, as amended.⁵

The various areas of the Department which have an interest in this request have concurred in principle to the sale of this equipment on appropriate credit terms and steps are being taken now to work out details for approval by Mr. Dillon⁶ prior to obtaining the concurrence of the NAC. Although we have no reason to believe that the credit will not be approved without undue delay, no assurance of such approval should be given the Ecuadorans at this time. The terms will probably be for a three-year credit repayable in regular installments, with an appropriate down payment and interest charged on unpaid balance.

With best wishes always,

Sincerely,

R. R. Rubottom, Jr.

1. Source: Department of State, Central Files, 722.5622/1–1758. Confidential. Drafted by John M. Perry of the Office of South American Affairs on February 5. The source text is an unsigned carbon copy.
2. Copies of the referenced letters are in Department of State files 722.5622/12–1657 and 722.5622/1–1758, respectively.
3. Reference is to a memorandum from Colonel Robinson to Perry H. Culley, Counselor of the Embassy in Ecuador, December 13, 1957, and a message from Colonel Robinson to Ambassador Ravndal, January 14, 1958. This correspondence is filed with Ambassador Ravndal’s letters cited above.
4. Reference is to a letter from John L. Holcombe, Director, Office of Programming and Control, Office of the Assistant Secretary of Defense for International Security Affairs, to Robert G. Barnes, Special Assistant for Mutual Security Affairs, Department of State, January 8, 1958. (ARA/WST Files, Lot 62 D 75, “Ecuador: Sale of Arms, Munitions, and Equipment”)
5. For text of the Act, Public Law 665, approved August 26, 1954, see 68 Statue 832.
6. C. Douglas Dillon, Deputy Under Secretary of State for Economic Affairs. No record of his action on this request was found in Department of State files.