FOREIGN RELATIONS) 195 0, VOLUME I


Force is now compounded by a report from a Lockheed representa-
tive in Latin America that, as an aftermath of the Venezuelan pur-
chase, Colombia, Brazil and possibly Mexico are interested in
acquiring de Haviland jet aircraft which can be purchased, with
armament included, at a cost estimated to be 50% less than the Lock-
heed F-80's, and under conditions of sale which are far less restrictive.
  Peru to date is the only Latin American country ,which has mani-
fested a concrete interest in U.S. jets in spite of persuasive sales efforts.
Even Peru, however, was hesitant on account of the cost, and canceled
its order for four F-80's when it became apparent that the Depart-
ment ,was reluctant to approve an export license.' The view of the
Department in the Peruvian case was based primarily on the obvious
lack at that time of any hem, isphere defense role for Peru, or any
other Latin AAmerican country, which would require expensive high
potential fighter aircraft, and the heavy drain on the Peruvian econ-
omy of the cost of this equipment.
  These developments are inescapably linked with the Venezuelan
case and have a bearing on the present decision confronting the De-
partment of whether to grant an export to Venezuela of the four F-80
jet aircraft rejected by Peru, in the event that the Venezuelan Govern-
ment should indicate a desire to purchase them.
   In conversations with the Departments of the Air Force and De-
 fense, on this subject, the Department has stressed the impropriety of
 stimulating the sale of costly weapons to Latin America unless they
 were essential for hemisphere defense plans. The Department has
 explained that, just ,as the military 'have their plans for the defenseý
 of the hemisphere, the State Department has its security plans, among
 which the political cooperation and economic productivity of the
 Latin American countries are regarded of the utmost importance. The
 Department has, therefore, emphasized that it is just 'as anxious to
 avoid any action that would jeopardize these two factors, as the De-
 fense Department is anxious to promote their ideas of standardiza-
 tion of hemisphere-defense equipment, etc.
   The Department of the Air Force has informed us in these discus-
 sions that the present strategic plans for the air defense of the Carib-
 bean region are predicated on the ability of Venezuela and Colombia
 to protect their coasts from submarine-launched attacks. For this
 purpose it is stated, the use of jet fighters such as the Lockheed F-80's
 used by our Air Force are essential. The Department has advised the
 Department of Defense that, if it is ready to certify in writing that

   In a note to the Peruvian Embassy of April 4, 1950, the Department had
denied
 Peru's request for an export license, which had been pending since November
3,
 1_949. J(923.537/4-450) Peru, previously informed of the Department's attitude,
 had already lost interest in the planes. (Files 423.118 and 923.1526 for
1950)


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