5. Memorandum From the Administrator of the Agency for International Development (Bell) to President Johnson 1

SUBJECT

  • Determination under sections 505(a) and 511(b) of the Foreign Assistance Act of 1961, as amended, permitting the furnishing of defense articles on a grant basis to certain Latin American countries

The purpose of this memorandum is to recommend that you determine (1) pursuant to section 505(a) of the Foreign Assistance Act of 1961,2 [Page 9] as amended, that the furnishing of defense articles on a grant basis under the Act to Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru and Uruguay is necessary to safeguard the security of the United States, or the security of such countries which are associated with the United States in the Alliance for Progress, against overthrow of duly constituted governments, or both; and (2) pursuant to section 511(b) of the Act, that internal security requirements may be the basis for furnishing defense articles on a grant basis to Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Nicaragua, Panama, Peru and Uruguay.

The total programmed for countries listed in (1) above in FY 1964 for defense articles in general is $54,374,775. The portion of that amount which is related to internal security for countries listed in (2) above is $32,662,464. The amounts for each country are shown in Attachment #1 hereto.

In sum, my recommendation for the required determinations, supported by data in Attachment #1, is based upon the facts that:

(1)
all countries are associated with the United States in the Alliance for Progress,
(2)
they have requested our help to meet the pressures of the Castro-Communist threat which is now a reality, and with which they cannot cope without our assistance, to defend their coastal waters, to engage in civic action, and to participate in collective defense missions; and
(3)
maintaining the internal security of these countries and the freedom of the Hemisphere from aggression is necessary to achieve our objectives in the Alliance for Progress.

It is, accordingly, recommended that you sign the attached memorandum which embodies the determinations required by sections 505(a) and 511(b) of the Act and thereby authorize the furnishing of defense articles on a grant basis for the purposes described.3 The Department of Defense concurs in this recommendation.

David E. Bell

Attachment #14

1. Statutory Requirements

A.
Defense Articles in General are limited by section 505(a) of the Act in pertinent part, as follows:

… except (1) to the extent necessary to fulfill prior commitments or (2) to the extent that the President finds, with respect to any Latin American [Page 10] country, that the furnishing of military assistance under this Act is necessary to safeguard the security of the United States or to safeguard the security of a country associated with the United States in the Alliance for Progress against overthrow of a duly constituted government, and so informs the Congress, no further military assistance under any provision of this Act shall be furnished to any Latin American country.

B.
Defense Articles for Internal Security Purposes are further limited by section 511(b) of the Act as follows:

Internal security requirements shall not, unless the President determines otherwise and promptly reports such determination to the Senate Committee on Foreign Relations and to the Speaker of the House of Representatives, be the basis for military assistance programs for American Republics.

2. Funds for Defense Articles in FY 1964 Program

The funds programmed per country are set forth below. The total funds programmed for defense articles for any one country may be varied by up to 15% of the amounts specified below to take account of changing circumstances and requirements, subject, however, to the requirement that the total amount programmed for all countries shall not exceed the ceiling of $55 million established for grants of defense articles by section 511(a) of the Act.

Column A—Total country grants for defense articles (including costs of packing, crating, handling, and transportation) for FY 1964 which, pursuant to section 505(a), are necessary to safeguard the security of the United States or to safeguard the security of these countries against the overthrow of duly constituted governments.

Column B—Portions of total defense articles in column A programmed to meet internal security requirements pursuant to section 511(b). These are defense articles necessary to safeguard the security of these countries against the overthrow of duly constituted governments and are considered to be primarily for internal security.

[Page 11]
Country (Column A) Total Funds for Defense Articles (Column B) Internal Security Portion of Funds for Defense Articles (not additive)
Argentina* *$7,545,464 *$6,252,584
Bolivia 1,472,129 998,538
Brazil 10,422,686 4,823,369
Chile 7,467,191 2,570,929
Colombia 9,251,021 6,487,355
Costa Rica 398,813 110,939
Dominican Republic 126,695 0
Ecuador 3,178,984 2,729,838
El Salvador 975,954 769,048
Guatemala 1,382,100 746,016
Honduras 51,151 0
Nicaragua 443,903 411,503
Panama 143,958 133,958
Paraguay 909,149 0
Peru 8,189,750 5,762,567
Uruguay 2,415,827 865,820
Total $54,374,775 $32,662,464

All of these countries are associated with the United States in the Alliance for Progress.

Since all the materiel to be provided under this program is of United States origin, there will be no adverse effect on the balance of payments.

3. Basic Justification for Findings and Determinations

This recommendation for the necessary findings and determinations by the President permitting the furnishing of Defense Articles in General and for Internal Security is based on the following considerations:

Latin America has long been considered a target for Castro-communist subversion. Because of the unstable political institutions, enormous social differences, and retarded economic growth in these countries, many groups in their societies feel isolated from the main currents of national development, and are easy prey to Castro-communist propaganda and organizers.

The Castro regime has announced its intention to promote the overthrow of Latin American governments and replace them with totalitarian regimes patterned on the Castro model. In furtherance of this intention, subversion and guerrilla warfare are being used either unilaterally or in conjunction with local communists, exiles, or dissident opposition groups.

The insidious character of this threat has created critical new requirements for military training and equipment in the Latin American armed forces. Forces responsible for maintaining law and order have neither the equipment nor the trained personnel to counter well-conceived and well-executed plans to subvert the State, either by mob action, guerrilla warfare, terrorism and sabotage, or by armed invasion. They are turning to us for help in developing the special capabilities to seek out, destroy, or take into custody both arms and bands of armed men which move across their land, sea, and air borders for subversive purposes; to deal effectively with disorders in the cities; and to prevent or control guerrilla outbreaks in rural areas. Unless these countries develop the will and capability, individually and jointly, to deal effectively [Page 12] with this new threat, they stand to lose the opportunity for orderly economic and social growth within the framework of free institutions.

The prevention of any further expansion of communist influence and power within the Western Hemisphere is a major requirement of United States security. Any such expansion would not only greatly undermine the physical security of the United States, but would place the United States position in all other areas of Latin America in jeopardy and would adversely affect our power and influence in other areas of the world which are vital to U.S. security.

This assistance is also designed to increase the capabilities of recipient countries to provide for defense of their coastal waters, participate in civic action projects which serve to ameliorate socio-economic conditions and discontent upon which communism feeds, and to participate in collective defense missions. In general, the capabilities now being developed by military assistance in Latin America of light, mobile forces constitute an important collective defense asset.

Accordingly, the furnishing of defense articles for the purposes described above is necessary to safeguard the security of the United States or to safeguard the security of these recipient countries against the overthrow of duly constituted governments.5

  1. Source: Johnson Library, National Security File, National Security Action Memoranda, NSAM 297, Latin American Military Aid, Box 4. Secret.
  2. The Foreign Assistance Act of 1961, P.L. 87–195 (75 Stat. 436) was approved on September 4, 1961.
  3. This memorandum was not found. For the final version, see Document 7.
  4. Secret.
  5. Implementation will be withheld pending conclusion of a normal military assistance agreement now being negotiated with Argentina.
  6. Implementation will be withheld pending conclusion of a normal military assistance agreement now being negotiated with Argentina.
  7. Implementation will be withheld pending conclusion of a normal military assistance agreement now being negotiated with Argentina.
  8. An undated attachment entitled “FY 1964 Military Assistance Programs in Latin American Countries” is not printed.