FOREIGN RELATIONS) 1950, VOLUME I


   In another memorandum dated 19 July 1948,5 the Department of
the Army informed the Department of State that it would attempt to
assist the Latin American countries by permitting them to participate
in Army procurement programs from commercial sources. It has been
found however that obstacles, similar to those described above, pre-
vent the establishment of such a program. The quantities of equipment
desired by Latin American countries are usually so small as to make
-it impractical for a Latin American government to place contracts
for the manufacture of this equipment direct with 'commercial con-
c-erns in the United States. While it is possible that representatives of
these Governments can find civilian type equipment in existing com-
mercial stocks as a substitute for some of the items requested, the De-
partment of the Army is unable to advise on this matter other than
to supply the names of the recognized manufacturers.
   The Department of the Air Force is confronted with the same prob-
 lems as the Department of the Army in resolving this difficulty. Due
 to certain provisions of The American Republics Act (22 U.S. Code
 521-527) applying to naval vessels, the Department of the Navy may
 continue to provide limited assistance to these countries.
   Favorable action by the Congress on the proposed Foreign Military
 Assistance legislation will provide a more satisfactory legal basis for
 a new Latin American assistance program, although it is anticipated
 that financial and priority considerations will severely limit such aid.
 Pending enactment of the law and an expression from the Department
 of State as to the extent and mode of participation to be accorded the
 Latin American countries thereunder, it is believed that no useful pur-
 pose can be served by further referral of such requests to the Depart-
 ment of the Army or Department of the Air Force.
   The above problems have been discussed informally in the Foreign
 Assistance Correlation Committee and it is suggested that any further
 matters relating to the provision of military assistance and requiring
 inter-agency coordination be channeled through the Foreign Assistance
 Correlation Committee,.6
    Sincerely yours,                                 Louis JOHNSON
    5 Not printed.
    6Tables listing sales and transfer of military equipment to foreign countries
  including those in the Western Hemisphere which were transmitted to Repre-
  sentative John Davis Lodge under date of August 8, 1949 and which covered
the
  period since V-J Day are printed in the Department of State Bulletin, Septem-
  ber 2-6, 1949, pp. 480-481.


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