WESTERN HEMISPHERE DEFENSE


641


  NSC 56/2. The document has been distributed to representatives of
  all American republics, with a view to its approval following careful
  study and discussion.
    The Department of State has just received a copy of this plan and
 it is now under joint study by the Departments of State and Defense.3

                                            H. FREEMAN MAATTHEWS
    Documentation on discussion within the Department of the preliminary
draft
  (Document T-03) of the hemisphere defense scheme is in file 371.5 for 1950.

  731.5621/7-2050
  Memorandum by Mr. John W. Black of the Office of British, Con?,-
  monwealth and Northern European Affairs to the Officer in Charge,
  United Kingdom and Ireland Affairs (Jackson)

  CONFIDENTIAL                         [WASHINGTON,] July 20, 1950.
  Subject: Sale of British Destroyers to Venezuela.
  In a note dated October 6, 1949 1 Venezuela made inquiries regard-
  ing the possible purchase of U.S. destroyers for their Navy. In reply
  we stated that the matter would be given consideration but appar-
  ently no immediate action was taken. In December word was received
  from Caracas that the British were negotiating with the Venezuelans
  for the sale of three destroyers and that these negotiations were well
  advanced. Both the Embassy and our military people in Caracas
  expressed concern over this development but suggested that the deal
  might be blocked if the U.S. acted quickly by making one destroyer
  available immediately on a cash or loan basis and by beginning nego-
tiations for the-construction of three more. We replied by saying that
there was no objection to constructing three destroyers and subse-
quently announced our willingness to send a special commission to
Caracas to discuss the matter. No action was taken with regard to
the immediate transfer of one destroyer. Although it appeared for
a time that these moves might be enough to stall the British negotia-
tions, such was not the case. 'The proposed commission was never
invited by Venezuela and during the latter part of June a contract
for the purchase of two destroyers from British Vickers was signed.
  The problem of sales of military equipment to Latin America by
European countries has been of continuing concern to the Department
of Defense. In March of this year Defense officials expressed to the
Department their irritation regarding the sale of British jet planes to
Venezuela. At a meeting attended by interested officers in ARA and

  'Not printed.