CENTRAL AMERICAN SITUATION

Created: 10/8/1952

OCR scan of the original document, errors are possible

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HISTORICAL REVIEW PROGRAM RELEASEAS SANITIZED

MEMORANDUM >'OR THE RECORD

Central American Situation

At.eeting was held, in the State Department. Present were: DB, HFM, EGM, and TCM of State and FGW,CIA. FCW on behalf of the Director stated that it nan oeea cne understanding of the Agency that the State Department had approved of the Agency's project to provide certain hardwareroup planning violenceertain government; tbat some question had apparently arisen ae to whether State does approve; that the fact of the Agency's not having kept the Department informed of the developments in the project was not considered by the Agency to be any reason for doubting that the Department still approved because it had been understood tbat tbe Department did not wish to be kept Informed of the detailed plans. In the Director's view, the Agency is purely an executiveof the Government which carries out missions and conducts activities In support of the foreign policy objectives of the Government. The State Department has the primary responsibility in the field of foreign policy and accordingly, the Agency vould do nothing that is considered by the State Department to beto its policy determinations. If the State Departmentof this particular project, the Agency will take immediate steps to bringalt its participation in all phases of the matter deemed objectionable by tbe State Department.

iscussion regarding the basis for the Agency's having understood that the Department approved the project, FGW referred to the Agency's records of conversations between AD and EGM- The latter recalled hie statements to AD and SB on July tenth in vhlch he had said that be felt tbe risk of providing arms vas too great but that he hod no objection to monetary contributions. RC recalled that he had also statedarge American company must be protected almost as strongly as the United Statesbecause South Americans do not make any distinction between

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the two in their political thinking and because trouble for the Company involves the Department in getting it out of trouble. PGW stated that AD had toldf_ Jon or about August thirteenth that the Agency had the green llgin. to go ahead on the project but in tbe absence of AD he did not know what was the basis of this statement. DB stated that although ho had some telephone conversations with tbe Director he did not recall having sold anything that could bess approval.

3* Messrs. DB, BFW, and EGM pointed to the remarks ofo the effect that he had the approval of the United States Government to go aheadlan. JCK andfjnjvethatad gotten no such approval rromof the Agency, snd it was agreed that General S's statements could be based only upon remarks made to him by members of the Unite Bouse staff. The CIA officials pointed out that large quantities of arms have been acquired by tbe target government and other leftist groups In the Caribbean;evolutionary movement against the target ls likely whether we support it or not, and that if it fails, American policy will be seriously prejudiced. The State Department officials made clear their feeling that if anything occurred there must be no question of any part of the American Government havingand in it, and they were not convinced that the plan for supplying the arms, insofar as they know the details, could be carried outrooch of security.

k. In conclusion DB stated that the Department approvesof the activities which the Agency is carrying outworld and does not like to be called obstructionist, but incase, as it has been called upon to approve an exportis forced to state that it disapproves of the entire deal. that the Department can raise no objection to anywhich the Agency might make as it knows that theconstantly passing money for purposes wbicb the Departmentapprove of and must do this in order to operate, but itmoney can be passed securely. The State Departmenthowever, expressed their surprise

should be again mixing upentral American revolution and cautioned against using ito-between.

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