68              FOREIGN RELATIONS, 19950, VOLUME I

tions, I would appreciate your so advising me since, under such cir-
cEustancesc, I would wish to review the matter further.2 Otherwise,
the Department proposes to proceed as follows:
  1. The Ambassador of each Government concerned will be called
in individually by the Department of State and presented' with a
diplomatic note advising his Government of the proposed offer of
sale.. At the same time, the Ambassador will be advised of the statu-
tory requirements for the payment of cash in advance of delivery,
and of certain customary governmental assurances in connection with
these transactions.
  2. When the Ambassador indicates informally to the Department
that the manner of payment in this transaction and the requisite as-
surances are understood and acceptable to his GovernmentO, he will be
advised that -the Department of Defense will p~rocee;d forthwith to
negotiate the details of the transaction with the naval authorities of
his Government, in accordance with the terms of the Mutual Defense
Assistance Act of 1949 as amended.
  I shall appreciate being advised if this proposed procedure meets
with your approval.3
   Sincerely yours,                                   DEAN ACHESON

   2A memorandum of October 9, 1950, from Fletcher Warren, Director of the
Office of South American Affairs, to Acting Secretary Webb, indicates that
the
sale of excess naval vessels to other American governments encountered its
prin-
cipal opposition within the Department from ,officials of the Mutual Defense
Assistance Program. (720.5 MAP/10-950)
  3In a letter of October 26, 1950, Secretary Marshall acknowledged the Depart-
ment's concurrence with the Defense Department's proposal of September 12
but stipulated that Navy Department officials should hold staff conversations
with members of the purchasing navies bef ore actual quantities of equipment
were specified in diplomatic correspondence. (720.5621/10-2650)
  For the press release announcing the formal U.S. offer of January 4, 1951,
to
sell two cruisers apiece to Argentina, Brazil, and Chile, see Department
of State
Bulletin, January 15, 1951, p. 104. The U.S. offer was accepted on January
4
by Brazil and Chile and on January 8 by Argentina. For texts of these offers
and
acceptances, which constituted agreements entering in force on -the date
of
acceptance, see, for Argentina, Brazil, and Chile, respectively, United States
Treaties and Other International Agreements (UST), vol. 3 (Pt. 2), p. 2735,
p. 2738, and p. 2741.
  In telegram 94 from Santiago, August 29, 1950, Ambassador Bowers reported
in part that Chile would not be interested in destroyer escorts. (725.5621/8-22950)
Negotiations regarding other naval equipment specified in the Defense Depart-
ment proposal of September 12 did not near completion in 1950.