434. Circular Airgram CA–2258 to Certain Diplomatic Missions, August 261
SUBJECT
- Military Sales Policy
Joint State/AID/Defense message. According to the wishes of the President, addressee posts are advised of the importance of prosecuting a program of selling U.S. military equipment to allies as an essential element of tying military aid to foreign policy and of decreasing the net outflow of gold from this country.
Posts should remain alert to opportunities for military sales and, in advising Washington as to these possibilities, making recommendations thereon, and prosecuting such sales, posts should be aware that, in keeping with the President’s expressed desire, military sales programs are to be supported which are consistent with other foreign policy considerations. Questions such as the degree to which military sales could divert resources from higher priority economic development objectives, particularly where we are extending economic aid, should be brought to bear. The degree to which the arms which a country proposes to purchase are compatible with the objective of focusing military resources on internal defense as opposed to “arming against neighbors” is also a factor for careful analysis. All sales, whether government-to-government under the Foreign Assistance Act or direct commercial, are to be encouraged within the context of overall foreign policy considerations and should [Facsimile Page 2] be fully coordinated within the Country Team. In Washington, the concerned Departments will take account of potential competition between military sales and grant military assistance for funds to finance either the sales or the grant assistance.
- “Military Sales Policy.” Confidential. 2 pp. Department of State, Central Files, DEF 12–5 US.↩