158. Telegram 54268 From the Department of State to the Embassy in Honduras1
54268. Subject: Aerotrade and Transfer of F–86 Aircraft. Ref: State 50918.
1. Aerotrade officials met February 19 with George Vest, Director, PM, and David Lazar of CEN to inquire regarding status of their licensing application for transfer of F–86s to Honduras. DeptOffs stated that Department did not feel application could be approved at the present time, given continued lack of tangible progress on peace talks between Honduras and El Salvador, but that we were hopeful of developments within reasonably near future which would permit Dept. to approve application. Aerotrade reps. agreed to be patient a while longer but promised to call and check status again in two weeks.
2. DeptOffs did not, of course, refer to incentive aspects of our dealings with GOH on this matter but referred only to feared destabilizing effect on any settlement negotiations or continuing GOH–GOES contacts that might result from F–86 purchase at this time.
3. Following are major elements of present situation as we see it from here.
(A) There is increasing pressure on USG from Aerotrade to make a final decision on their license application. Aerotrade officials have agreed to wait a while longer on the basis of our statement that a final decision now would necessarily be negative. However, given the length of time they already have waited for USG decision, we anticipate growing impatience on their part.
(B) The continuing absence of a positive decision on our part will tend to shape events and reactions in the same way as would a negative decision. The anxiety of the Yugoslavs, relayed to Dept. through DOD/ISA, to dispose of the aircraft makes it almost certain that further delay in approval of the transfer to Honduras will lead them to attempt to [Page 453] find other buyers. At the same time, Lopez can probably be expected to intensify his reported efforts to locate non-U.S. origin aircraft of same generation as F–86s. In either case, the possibility is that HAF will end up with non-U.S. origin aircraft. The consequence of this would be some weakening in our relationship with Lopez himself and some erosion of our military advisory relationship with the HAF.
(C) Post-Jalapa developments suggest that there is no point at this time in making another effort to use Lopez’s desires for F–86 aircraft to move him towards settlement with El Salvador. Thus, if we were to approve F–86 transfer now, it would be in the absence of even a modicum of progress. We recognize that to proceed on the F–86s could weaken our credibility with Lopez.
4. After due consideration of pluses and minuses outlined above, we are inclined to approve Aerotrade license application upon receipt of official request by Government of Yugoslavia for USG concurrence in transfer of F–86s to Honduras through Aerotrade. This, of course, assumes satisfactory resolution of question raised in reftel. Our reasoning is that (a) there are no real military balance considerations involved; (b) continued deferral of decision will not lead Lopez towards settlement with El Salvador; (c) maintenance of political and military relationship which should flow from approval of application, outweighs in importance related minor damage to our credibility; and (d) to refuse license application or to continue deferral of decision without serious substantive reason would be a disservice to legitimate commercial interests of Aerotrade.
5. Assuming you concur with decision to approve aircraft transfer, we invite also your thoughts and recommendations as to notification of sale to GOES. Obvious disadvantage attaching to unilateral notification by either USG or GOH leads us to conclude that we should attempt to arrange simultaneous notification of GOES by both GOH and USG. Comments Embassy San Salvador also invited.
-
Summary: The Department reported it was inclined to approve the transfer of combat aircraft to Honduras, noting that withholding a license for the transaction had not helped to bring about a settlement of the dispute between Honduras and El Salvador.
Source: National Archives, RG 59, Central Foreign Policy File, D750085–0400. Confidential; Priority; Exdis. Drafted by Lazar, cleared by Vest and Ellsworth, and approved by Bowdler. Repeated to San Salvador. In telegram 954 from Tegucigalpa, March 12, the Embassy concurred in the approval of the transfer and suggested the U.S. Government inform the Salvadoran Government of the decision in a low-key manner. (Ibid., D750086–0880) In a March 21 memorandum, Low informed Scowcroft that the Department of State had approved the transaction. (Ford Library, National Security Adviser, NSC Latin American Affairs Staff Files, 1974–1977, Box 4, Honduras—Political, Military)
↩