Created: 6/9/1954

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SUBJECT i Search of Snip- In tne Caribbean Area for Arms

I discussed with Mr* Robert P. Woodward and Hr. Raymondeddy of the Departnont of State specific problems arising out of the wulfsbrook case end prospective problems arising outeneral program for sssrch and stoppage of sraoment shipments.

roposed to Mr. Wocdvmrd some languagoote In -never to the protest of the Betherlands Government which would combine the legal basis for the search of the wulfsbrook with the thought, previously suggested by Mr. Visdot, of the eutual Interests of the two governments involved ln the eree. Mr. Woodward said be felt this proposed wcrrdlng was sound. hen suggested some thoughts on tbe general problem of search of shipping in tbe area whereupon Mr. Woodward produced the draft resolution which this Government would recommend be signed by the appropriate Latin American countries to take such action as might bo necessary in

tbe case of arms ahipnente bound for Guatemala. sked if the Deportment hadinal position on the potential liabilities implicit lnesolution. Mr. Leddy stated that the only pressing problem arose out of the inquiry from the GermanIn Bonn as to whether this Government would undertake any expenses created by the set of tho German Govensnont in holding ships at our instance. Mr. Woodward said he had reccivea oral inquiries from the British Embassy here but was not being pressed for an answer. Mr. Leddy suggested that rather than answering the Bonn inquiry directly, we ask the Maritime powers Involvedeneral statement of cooperation in principle in order to determine whether the question of Indemnification would be the deciding point. Meanvhllo, we could Investigate further tbe Implications of liability.

stated that there seemed toood deal ofto precisely how suchwould arise, how they wouldand what normal machinery there was for settlinguggested that the legal staff of the Department of

State and that of the Departaent of the Treasury were probably far more feailiar vith these claims which appeared to erloe under edairalty otatutea rather than tho Federal Tort Claims Act and that Mr. Woodward might wish to ask the Legal Adviser to assign someone to investigate the problem. Kr. Woodward said he would talkV to Mr- Herman Pbloger about this and ask him to have oomeono study the whole question. aid we would be very glad to assist, and when we found out bow clalne were handled under the normal overt proccdureo and who was responsible for making payment, ve would then see bow CIA would fit into the program. elt certain that if we instigated action in any one case, and particularly If the action werelandestine nature, we would be willing to accept responsibility, butelt the overt program, generally was socBuhat outside of our charter. tated ve would do whatever we could to help out.

a. Tn line withei ell'stated the soccer ve resolved the various problems the better position wo would be In to take lmnedlete action when information concerning aroed shipaente was received. Kconvhilo, Mr. Leddy said ve vould just have to proceedane-by-coneogreed. Kr. Woodward said we would hear from bin ox the Legal Advisor's Office in the near future.

i.^kkesce0 tGeneral Counse



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