664


FOREIGN RELATIONSY 1950, VOLUME I


advocates the financing of wartime strategic materials programs
through the use of funds available under the Defense Production
Act -5 Although the financial program outlined above takes account
of the basic development requirements in the field of transportation,
power and food production essential to an expansion of the produc-
tion of strategic materials in Latin America, it has been assumed that
the expansion of the productive facilities themselves will be financed
under the Defense Production Act or other special defense funds.


  ARA has no suggestions as to other sections of the report.

  15 Approved September 8, 1950. For text, see 64 Stat. 798.

795B.5/9-1250
  The Secretary of State to the Secretary of Defense (Marshall)

SECRET                            WASHINGTON, September 27, 1950.
  MY DEAR MR. SECRETARY: I refer to the letter of September 12,
1950, of the Secretary of Defense to Secretary Acheson which sets
forth the views of the Joint Chiefs of Staff regarding Latin American
military participation in the Korean operation, as this matter is
dealt with in certain proposals by the Department of State which
were transmitted with my letter of 'August 9, 1950 to Major General
James H. Burns.
   It is gratifying to learn that the Joint Chiefs of Staff are in general
 agreement with the Department of State upon the desirability that
 .Latin American forces join the United Nations forces in Korea and
 that they concur in the view that.positive assistance from this Govern-
 ment is essential to any effective Latin American military contribu-
 tions to the action in Korea.
   Of most immediate concern in this connection, I believe, is the
 recommendation of the Joint Chiefs of Staff that the Department of
 State-take prompt action to obtain offers, from Latin American. gov-
 ernments of completely organized and, in so far as possible, fully
 equipped and self-sustaining army, navy or air force units for utiliza-
 tion in one or another aspect of the Korean operation.-Since. it is our
 view that a precise understanding of the conditions of reimbursement
 for equipment, supplies and services furnished by this.Government for
 organized units which may be offered is required for further con-
 sultations which we may have-with Latin American governments, I
 shall appreciate your informing me as to whether thel-Department of
 Defense is in agreement that; based upon Secretary Johnson-sJetter