Foreign Relations of the United States, 1969–1976, Volume E–11, Part 1, Documents on Mexico; Central America; and the Caribbean, 1973–1976

110. Telegram 1248 From the Embassy in Costa Rica to the Department of State¹

San José, April 10, 1973, 1700Z.

1248. Subj: Vesco Case: Transmittal of SEC Reply to President Figueres’s Offer Mediate. Ref: San Jose 983.

1. I called on President Figueres April 9 and gave him copy of SEC letter of April 2 replying to President’s letter suggesting mediation in return for immunity for Vesco from criminal prosecution (reftel). In presenting the letter, I stressed two points: a) the SEC’s refusal to promise immunity and to have the funds’ money be in effect hostage to be ransomed, and b) the description of how the SEC viewed the issues in this case. I pointed out that I thought it was particularly important for the President to understand this latter point, because the motives and views of the issues which the SEC sincerely holds are quite different from what Vesco claims they are. Thus at least this letter will establish the parameters of the issue. I read him the last paragraph which speaks to this point.

2. I also took occasion to describe the reports regarding possible bank deposits in Panama (State 58280). The President listened intently to this, but made no comment. I do not know if he was aware of the information I gave him, but he gave no indication that he already knew about it. The President in return repeated his promise to give me a letter explaining in precise detail the money that was deposited to his account in New York (San Jose 984).

3. The President listened soberly and for the most part quietly to all my exposition. He said only that he wanted to study the letter. I said if he had any further questions I would be happy to try to get him answers.

Vaky

1. Summary: Ambassador Vaky informed President Figueres of the SEC’s rejection of his offer to help mediate a settlement between the Commission and Robert Vesco.

   Source: National Archives, Nixon Presidential Materials, NSC Files, Country Files, Box 779, Latin America, Costa Rica. Confidential; Nodis. The April 2 letter from the Securities and Exchange Commission to Figueres referred to in this telegram has not been found. In telegram 984 from San José, March 22, Vaky reported on a conversation with Figueres, observing that the President seemed to feel the SEC’s primary concern was keeping investment capital within the United States. Vaky countered that the Commission was seeking to ensure the “honest and proper management of funds.” (Ibid.) In telegram 58280 to Panama City, April 10, Rogers described Vesco’s possible bank deposits. (Ibid., RG 59, Central Foreign Policy File, [no film number]) Telegram 983 from San José was not found.