Foreign Relations of the United States, 1958–1960, American Republics, Volume V

171. Letter From the Under Secretary of State for Economic Affairs (Dillon) to the Assistant Secretary of Defense for International Security Affairs (Irwin)¹

Washington, March 6, 1959.

Dear Mr. Irwin: The enclosed memorandum² indicates my general concurrence in a military assistance program for Argentina, which has been recommended to me by Assistant Secretary Rubottom.

As you know, discussions have taken place between Argentina officials and our Departments concerning Argentina’s desire to make military purchases on credit from the United States. Notably, the subject was raised with President Eisenhower by President Frondizi during his recent visit.

I have concluded that a modest military assistance program for Argentina is required to meet the following objectives:

1. To lend support to President Frondizi and the policies which he is pursuing;

2. To assist in meeting the needs of the Argentine armed forces, whose backing is an important factor in the degree of success which the present government’s programs are likely to achieve; and

3. To preclude Argentina from procuring arms from other sources in amounts which might be substantially greater than we are prepared to supply and therefore more likely to be disruptive of the economic program of the country to which the U.S. is contributing large resources.

This last objective, coupled with the limitation on our aid availabilities, makes it necessary that in proceeding with any assistance program both the Argentines and ourselves have clearly in mind the limited metes and bounds of U.S. aid which the achievement of our over-all objectives in Argentina require. In light of the fact that this limited program will clearly not satisfy the desires of Argentine military authorities every effort must be made by all U.S. representatives to discourage any further program and any more ambitious military planning beyond that implicit in the U.S. credit program.

It is highly desirable that some deliveries be made in FY 1960 to all three Argentine services. I believe that this requirement could be accomplished by programming FY 1959 credit funds limited to repair and rehabilitation costs with the remainder of the requirement being funded in FY 1960.

I would appreciate receiving your comments and views with regard to the foregoing proposal. I would hope, however, that we could move forward rapidly to implement the limited program described and therefore request the preparation of a specific military assistance program by the Department of Defense consistent with the achievement of the foregoing objectives. I am prepared to arrange for the necessary 1550 Determination³ and National Advisory Council advice upon receiving your program proposals.

Sincerely yours,⁴

1. Source: Department of State, Central Files, 735.5–MSP/3–659. Secret. Drafted on March 4 by Robert L. Burns and Seymour Weiss, Office of the Special Assistant for Mutual Security Coordination, and cleared by Bell.
2. The memorandum from Dillon to Rubottom was not found attached and has not been found in Department of State files.
3. Reference is to the Presidential determination required before the United States entered into any promise or commitment involving future expenditures of U.S. funds for foreign assistance.
4. Printed from an unsigned copy.