FOREIGN RELATIONS, 1950, VOLUME I


Mr. Satterthwaite2 of BNA it was decided that no objections to these
sales should be voiced to the British.
  After reviewing the facts of the present case, it would appear that
both the slowness of the U.S. to respond to Venezuela's interest in
procuring ships and the probability that the British offer was more
attractive than any that this country might be expected to make,
goes far to explain why the British were successful in making this
sale. Lacking any evidence of unfair business practices on the part of
the British and in the absence of any understanding or agreement
with the British not to sell military items to Venezuela, there does
not seem to be any grounds for a complaint by the U.S. in this matter.
   BNA has taken the position that there should be no approach to
the British regarding such sales until a definite agreement is reached
between the Department and the Defense Establishment regarding
the amount and types of military supplies which should be furnished
to Latin American countries in the light of individual and hemi-
sphere-security requirements. Once such an agreement is reached it
would be advisable to consult with the British in order to obtain their
cooperation in carrying out any balanced military program for that
area.

   2Livingston Lord Satterthwaite, Deputy Director of the Office of British
Com-
 monwealth and Northern European Affairs.

 796B.00/8-850
 Draft Paper' for the National Security CouncilZ2 by the Director of the
            Office of Regional American Affairs (Dreier)

 SECRET                               [WASHiNGTON,] August 3, 1950.
 Subject: Military Assistance for Korea from Latin America.
 Problem:
   To determine the policy of the United States Government with
 respect to the extension by the Latin American countries of military
 assistance to the UN forces in Korea.3

   L Several memoranda which accompany the source text of this paper (in
file
 796B.00 for August 1950) indicate together that it was not revised before
its
 submission to the Defense Department as an enclosure to the letter from
Mr.
 Matthews to Maj. Gen. James H. Burns, August 9, 1950, p. 648. In a memorandum
 of August 7 to Aaron S. Brown, Special Assistant to the Deputy Under Secretary
 of State, Livingston T. Merchant, Deputy Assistant Secretary of State for
Far
 Eastern Affairs, said in part that the paper had its origin in discussions
between
 himself, Mr. Miller, and Mr. Dreier. (796B.00/8-850)
   2In a memorandum of August 7 to Mr. Matthews, Mr. Miller said in part
that
   the Bureau of United Nations Affairs had suggested -the best way to have
the
   memorandum considered would be to have Mr. Matthews send it to General
Burns
   rather than submit it to the NSC. (796B.00/8-850)
   'For the overall policy of the U.S. Government regarding contributions
to the
   UN Command in Korea by other UN members, see volume vii.


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