616


FOREIGN RELATIONS, 1950, VOLUME I


groups who may use them to oppose the peaceful and democratic prin-
ciples to which the United States and other American nations have so
often subscribed.
  In entering into agreements with other American states for the
provision of training and equipment as authorized by the bill, the
purposes of this program will be made clear to each of the other
governments."
  The proposed legislation provided in section 5 that the terms and
conditions upon which the cooperation authorized under section 3 is
extended to any country shall be such as the President deems satis-
factory and the benefit to the United States may be payment or repay-
ment in kind or property, or any other direct or indirect benefit which
the President deems satisfactory. So far as the State Department
knows, there never has been a complete and accurate estimate of what
it would cost the United States to carry out an arms program in Latin
America based on the complete adoption of U.S. military methods and
principles and U.S. standards of military equipment.
  It is stated in SANACC 360/11 that the supply and demand rela-
tionship with respect to military assistance necessitates careful con-
sideration of the priority in which military assistance should be fur-
nished to applicant nations. Four areas of priority are listed. The
Western Hemisphere is in the third category as concerns long-term
military considerations, in the second category as concerns long-term
political considerations, and in the third category as concerns the
combined considerations. Countries are grouped into seven categories.
The only two Latin American nations listed are Brazil and Mexico,
which were placed in category 6 for a limited degree of assistance.
The SANACC paper recognizes the necessity under an arms stand-
ardization program of continuing procurement by the other American
countries of U.S.-type material. It is stated:
  "The priority position of countries outside the Western Hemisphere
should not exclude relatively small transfers of U.S. arms and equip-
ment from commercial sources or from available government surplus
to the other American countries."
  SANACC 360/12 contains the views of the Joint Chiefs of Staff and
the Secretary of Defense on SANACC 360/11. The Joint Chiefs were
of the opinion that the report is generally sound and will form a basis
for decision and action with respect to military aid priorities in peace-
time. The Joint Chiefs of Staff viewed with concern the fact that so
many countries are listed. They recognized that "substantial" military
aid is listed only for the Benelux countries, Canada, France, and the
United Kingdom and "limited" and "token" aid naturally
would not
in practice be given to all of the other countries listed. The Joint Chiefs
pointed out, however, that "even consideration of substantial military