WESTERN HEMISPHERE DEFENSE'.


657


  Finally it is essential to our relations with Latin America that
public opinion in that area be taken'into consideration in connection
with the announcement of any new major developments in the conduct
of our foreign relations throughout the world including the announce-
ment of proposed new aid programs. At the same time consideration
should be given to giving a new and more positive aspect to any pro-
gram of cooperation with Latin America as discussed in this memoran-
dum. A convenient method of doing that, and at the same time giving
more life to our regional system would be to convene early in 1951 a
consultative meeting of Foreign Ministers of the American Republics
to discuss economic and military cooperation in this hemisphere in the
light of the present situation and of the instruments at hand for carry-
ing out such cooperation. A prerequisite to such a conference is the
clear determination in Washington of the basic principles of our
participation in such a cooperative effort.

II. Recommendations for Modiflcations in NSC 68/1 and Annexes
   1. The military programs-the position of Latin America in the
military assistance program (Annex No. 1).5
   In view of the fact that the staff work of the Inter-American De-
fense Board has been projected on the assumption of effective coopera-
tion among military elements of all American republics in the defense
of the western hemisphere, the military assistance program should
be re-assessed in the light of these defense requirements, with par-
ticular reference to the question of whether modification of the reim-
bursable principle is not a requirement to an effective defense program.
The experience of the past war indicated that in order to secure ship-
ping lanes, provide the necessary communications, the necessary trans-
portation of strategic materials to the United States and the protection
of air and naval bases it was necessary for the United States to station
in the Caribbean and South Atlantic 300,000 military personnel. In
the event of a new outbreak of war such a drain on the military per-
sonnel resources of the United States would be a severe one. The
possibility of shifting a large portion of this responsibility to the
Latin American military establishments is a real one, but such a shift
requires effective assistance in equipment and materiel. In view of
the limited financial resources of the Latin American countries, it is
most unlikely that their military establishments can or will be ade-
quately strengthened in the absence of at least a modest program of
MDAP assistance on a nonreimbursable basis.
   The broader question regarding Latin American military participa-
 tion is whether steps should be taken at this time or in the near future

 No provision had been made in this Annex for grant military aid to the other
 Americaa republics. (S/S-NSC Files: Lot 63D351" NSC 68 Series)