665


WESTERN HEMIISPHERE DEFENSE


under reference, this matter may be discussed with representatives of
Latin American governments along the following lines:
  Latin American governments should be encouraged to offer orga-
nized combat or service army, navy or air force units, according to
the general criteria as to size and composition which areý set forth
in the September 12 letter of the Secretary of Defense. If such units
are determined, according to established procedures to be acceptable,
such equipment, supplies and services as the Latin American govern-
ment concerned is unable to provide for their effective use in the
Korean operation will be provided by the United States. A govern-
ment to which such equipment, supplies or services are furnished by
the United States should make prompt reimbursement in U.S. dollars
to the United States. If payment cannot be made immediately by
that government in dollars, the terms and method of payment for
the cost of equipment, supplies or services made available by the
United States will become a matter of diplomatic negotiation between
that government and the government of the United States. While it
is recognized that, in negotiating with a foreign government every
reasonable effort will be made to secure reimbursement in full or in-
part indollars, it may be necessary, in some cases, to accept full or
partial payment in the currency of that government, or some other,
form of settlement.
  Although the above conditions appear to the Department to offer
a possible basis for further consultations with the Latin American
governments in which they would be encouraged to offer assistance, it
is conceivable that there may develop special circumstances in con-'
nection with one or another specific offer which will make it desirable,
from the point of view of the general foreign policy of this Govern-
ment, for the Department of State to seek terms or considerations for
settlement which might not be as limiting as those outlined above.
  In view of the urgency of reaching a definite understanding regard-
ing the immediate problem of reimbursement as it affects possible:
Latin American contributions, I should appreciate an early indication
of the views of the Department of Defense upon the above indented
statement.
   The views of the Joint Chiefs of Staff on other aspects of the De-
partment of State's proposal, which was directed primarily toward
the immediate problem of Korea, but which may have much wider
application in the future, will be given further consideration
in the Department of State. I am sure you will agree that no effort
should be spared in search for methods whereby the governments of
the other American Republics may be encouraged by the United States
to increase their active participation in the defense of the free world
against aggression.
   Sincerely yours,                   For the Secretary of State:
                                          H. FREEMAN MATTHEWS
                                          Deputy Untder Secretary