PM–15. Memorandum from John O. Bell to the Assistant Secretary of Defense for International Security Affairs (Irwin)1
SUBJECT
- Determination of Eligibility for 120-day Credit Terms under Section 106(b) of the Mutual Security Act of 1954, as amended2 Panama.
Reference is made to the recent request of the Government of Panama to purchase certain military materiel under Section 106 of the Mutual Security Act in connection with its efforts to buttress its defensive capabilities in the light of the present unstable situation in the Caribbean area. The United States has indicated its readiness to meet this request. The Panamanian Government has requested credit assistance in making such purchases, which have been valued at approximately $100,000.
Accordingly, pursuant to the authority delegated to me and under the legislative provisions of Section 106(b) of the Mutual Security Act of 1954, as amended, I hereby determine the Government of Panama eligible to pay for purchases of military equipment from stock up to 120 days after delivery. This determination is limited in application to the purchases described in the paragraph above.
- Source: Department of State, Central Files, 719.56/5–1359. Confidential. Bell was the Special Assistant for Mutual Security Coordination to the Under Secretary of State for Economic Affairs. Drafted by Robert L. Burns of Bell’s staff on May11. The Source text is an unsigned carbon copy.↩
- Section 106(b) of the Mutual Security Act of 1954 authorized the President to sell military equipment and materials at fair value to any nation or international organization provided that he deemed such a sale in the best interests of the United States. The Mutual Security Act of 1954 was amended by the Mutual Security Act of 1958 (Public Law 85.853), enacted on August 28, 1958; for text, Rec 68 Stat.832.↩