STANDARDIZATION-OF-ARMS PROGRAM IN THE WESTERN HEMISPHERE (ORE 60-49)

Created: 6/30/1949

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FOB THE ASSISTANT DIRECTOR FOB HEPJBTS AND ESTUATES

STAND ARBIZATION-OF-ARMS PROGRAM IN THE WESTERN HEMISPHERE

CIA HISTORICAL REVIEW PROGRAM RELEASE IN FULL

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STANDARDIZATION-OF-ARMS PROGRAM IN THE WESTERN HEMISPHERE

SUMMARY

and following World War IT, plans were draws to standardize on US models the arms of the other American republics, which were, and still are, largely of European origin. This paper considers the state of thiswithout reference to Its advantages and disadvantagesatter of over-all policy.

Wartime shipments of US arms replacedmall part of European materiel lo Latin America. The standardizationhas not been as yet seriously tlircatencd by actual Latin American purchases of war materiel from non-US sources, but actual and proposed purchases and the construction In Latin America of plants for non-standard equipment isondition poten-tially adverse to the standardization of war

sed in this paper with reference to Latin America covers plana andfor rrulltary eollaboraUon which have never received the necessary concresflonsl approval.

materiel Many Latin American countries win need to make substantial purchases If they desire to replace obsolete or worn-out equipment. Although favoring USmost of the Latin American countries arc tending to make such purchases from non-US sources because of tlic following factors: lack of legal basis for US financialrms procurement; non-avall-ablllty or high cost of US equipment from commercial concerns, and availability ofarms without consumption of scarce dollars; increasingly aggressive European armament salesmanship; difficulty inUS spare and replacement parts.the realization of the standardization program will be Indefinitely postponed unless standard equipment, withere-part-supply and turn-to provisions, ls made available on favorable terms, and unless some arrangement ls made for manufacture of standard equipment in Latin American plants.

Note: Thc Intelligence organizations of the Departments of State. Army, Navy, and Uie Air Force have concurred ln this report.ased on inlormatlon available to CIA aa of

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STANDAR0IZAT.ON.OF-ARMS PROGRAM IN THE WESTERN HEMISPHERE

Slatoment of tho Problem.

Traditionally, the Latin American nations hare looked to Europe lor their arms and arms-mAnufacturing equipment. During and following World War n,erie* of bilateral stafl conversations with the other American republics had the effect ofsetting up. somewhat Informally, afor thc standardization of arms In the other American republics oa the basis of US models. Tbe principal objective of thiswas to Improve thc security of the Western Hemisphere by facilitating JointAlthough there wore no actualmany Latin American governments may have felt that the equivalentromise was made by the US Government. Thiswas unanimously approved by aof the Intcr-Amcrican Defense Board. It was realised In very small part by sales of surplus military equipment under tho Interim Allocation Program. The President of the US twice submitted legislation to Congressa program of military collaboration with the other American republics. Since that time, the changing Internationalhas dictated consideration of the relative priority of Latin American programs. Otheror military assistance, such as tliat for aid to Greece and Turkey and now thc military program for tho North Atlantic Pact countries, have been developed. It is thcof this paper to survey tho presentas to the latin American standardization program, to list forces impelling the other American republics to arms purchases, to analyxe the factors favorable and unfavorable to the Implementation of the standardization program, and to estimate the conditions under which tills program may succeed or fail. No attempt will be made In this paper tothe standard nation-of-arms program with other similar programs which the US has been or is now undertaking, or to estimate the relative urgency of the Latin American

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have yet been drawn for anyquantity.

Important for Its potentially adverse effect on the standardization program Is theof plants for the production ofmateriel, whichroblem of conversion of these plants to the production of US standard armaments In order to effect standardization. Argentina Isactory to manufacture British-designedet-eircraft engines, and Britisharc already hi Argentina tothc factory construction. For some time, however, Argentine "manufacturing" of these engines will probably amount only to the assembly of parts shipped from England. The Dominican Republic has undera small-arms factory which will produce sub-machine gunsype completely foreign to any US equipment. The factory ls being constructed under the supervision of aand will be staffed by European The products of these factories will continue to be furnished to thc armedof the country or countries Involved, thereby Increasing thc problem of The existence of such factories, since they are unlikely to be extensive enough to support or maintain the materiel theyleads to further non-US purchases to replace factory equipment and to supplement local production. ar plantsnon-standard materiel would notwould plants manufacturing standardlessening the demand for US-type equipment.

3. Forces Impelling Arms Purchases.

Much of the materiel in Latin American armed forces Is obsolete (particularly armored vehicles, medium artillery, aircraft, and naval vessels) and, as certain types of ammunition and parts are no longer available, much of the heavy materiel on hand is practicallyfor combat. Therefore, thc countriesto have their armed forces ready forIncludes the greater number of theneed to make substantial purchases to replace obsolete and useless equipment. It is true that deterioratingconditions In the Latin American coun-

tries will lend to restrict purchases of arms, but the generally strong political Influence of the military forces In these countries will tend lo overbalance practical considerations. The Latin American countries of coursewhenever possible, to make purchases which will bring their arms and equipment ln line with modern concepts.

A few purchases of modern equipment by one nation normally can be expected to lead to similar purchases on thc part of most neighboring nations for their own security and prestige. Argentina's purchase of British jet aircraft has made Brazil extremely anxious to obtain ]ct aircraft, which will probably be purchased from the US if any are available The Dominican Republic's purchases of arms and equipment have made Its neighborsand desirous of purchasing newImmediately; Venezuela, for example, has discussed negotiations with England for tbe purchase of one light cruiser and several aircraft.

Favorablo to

There is no question that, other thingsequal, the Latin American countries would prefer to have US equipment because of (a) the conceded superiority of most US materiel, (b) the greater security of the source of supply, (c) the prestige which Worlduccess has added to American arms, and (d) the genuine desire of thc latin American countries to be able to make anjoint contribution to Uie defense of thc Hemisphere. Unfortunately, these are long-range factors; practically all Immediate and short-range factors at the present time favor the purchase of non-US equipment.

Unfavorable to

There now exists no legal basis forstandardization by US financialLatin American countries are of course at present pondering this question anew ln thc light of public statements relative to arras and equipment for the North Atlantic Pact countries. Lend-Lease has been terminated.

(lie Interim Allocation Progiam has run dry, and thc InIcr-Amurican Military Cooperation bill has not been passed although submitted lo two sessions of Congress.esult, the Latin American countries hate becomethat thc US will move to carry out the full standardization program In the nearSuch purchases as these countries llnd themselves compelled to make will, therefore,adical change in the presentbe made on the open market

A considerable amount of new and modem USarmyIs not available for sale. Much US Army war materiel is manufactured in governmentand there ls no satisfactory legal basis for the sale of such equipment to Latincountries. Commercial manufacturers capable of manufacturing standard US Army equipment generally are not authorized to manufacture and sell such equipment.

Much new and modern US equipment avail' able from commercialfor.not available on terms which the Latin American countries believe they can meet. Most of these countries now lackcredits with which they can makepurchases at commercial prices. Much non-US equipment Is now available to the Latin American countries at prices which are. by comparison, more attractive, and Inin which they have more favorable balances. The existence of sterling credits, for example, is at least partly responsible for purchases from the British on thc part ofand other countries. There ls the additional factor that non-standard arms from the European countries, as these arms arc replaced by new US equipment, may (hid their way into Latin American countries. (A

similar situation existed8 within the Hemisphere;esult Brazil soldubstantial quantityherefore, such open-market purchases as are made will probably favor non-US materiel.

European arms salesmen are appearing In ever-Increasing numbers In Latin America, while few US salesmen are on the scene and even fewer are able to deliver armaments on which the US armed services have

A further factor ls the difficultyIn securing from the US spare parts andas aircraft and engineequipment obtained from the USIn recent years but now rated obsolete by the Ua This difQculty has raised doubts In the minds of the latin Americans as to theof standardizing on US models, even If such Items should be available at favorable prices, except with advance promise of the continued availability of spare ports.

6. Conclusions.

Thc above-listed factors indicate that,tbc standardization program is not seriously threatened to date, Its realization will be postponed for an indefinite periodthe following conditions shortly come Into existence: first, availability of standardat terms and prices comparable to that which would be paid for non-standardsecond, guarantee of sources of repair and replacement parts orrade-in system whereby worn-out and/or obsolete weapons may be exchanged for new; third, provision of facilities which will enable some rttandardiicd weapons to be manufactured in local plants hi the Western Hemisphere countries.

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APPENDIX

FACTS BEARING ON THE STANDARDIZATION PROGRAM

US Authorizations.

Upon the cessation of Lead-Lease, the only legal bases for the transfer of militaryand supplies were the Surplus Property Acts04 providing for theof military materiel declared by the US services as surplus to their needs; and certain statutes permitting thc President of the US to authorize the sale of any military stores deemed damaged or unsuitable for the public service. One of these statutes, thc American RepublicsS) of ISlso permitted thc President of the US "at his discretion to authorize thc Secretary of War to manufacture ln factories and arsenals, or otherwise procure, coast-defense and materiel, Including ammunition therefor, on behalf of any American republic" These statutes, although not repealed, are, to all effects and purposes, dead as far as the shipments of war materiel to Latin American countries are concerned. They are extremely limited and restrictive in scope and were originally enacted for some specific purpose or purposes now satisfied. For Instance, the Surplus Property Acts, although still on the books, arc no basis for transferring arms to Latin America as thc stocks of surplus items are depleted.

2. Plans and Programs.

The State. War, and Navy Departmentsa US military-assistance programtin America. The purpose of It was to help the republics meet the responsibilitiesin5 Act of Chapultepec, inter-Amencan agreements, and UN Charter. Thc US program included the establishment of Is military missions as requested bytn American governments, the training of Latin Amcricnn personnel in US service

schools, and the transfer of munitions.exploratory discussions and bilateral ston* conversations were conducted45 by the US with the Latin American governments, with the exception of Argentina, concerning the type and size of the Latin American armed forces for which USwould be furnished. Argentina was later Included In both discussions and plans.

Thc Western Hemisphere Defense Program, drawn up5 following thc bilateral slafl conversations, contemplated an armed-force strength for each country (Argentina was not Included In the first program) approximately equal to thatstimates of USrequirements to accomplish thisvaried from the planned allotment for Brazilnfantryavalryountain division,rmored division and supporting troops;ightestroyerorpedo boat lenderubmarine rescue vessel; airaseir forceighteredium bomberighterrainingiaisonommunications equipment groups and someommunications stations) to the planned allotment for Costa Ricanfantry battalion combat team with supporting troops).

The Inler-American Defense.esolution entitled Standardization oj Materiel, ln which Itlo the governments of thcRepublics "that they adopt as anobjective the standardization of the war materiel of thc armed forces of each nation which are to be held available for Joint use In the protection of this hemispheree gional security organization, nnd as anobjective the full standardization of the materiel of all units of the various armed

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and ol thc facilities for lisarticularly significant ls thc Inclusion of "facilities for production" In this resolution. Following this recommendation and thcstaff conferences, the President of the US.nd againent toa bill to be entitled The Inter-American Military Cooperation Act, authorizing aof military collaboration with the other American states Including thc training,and equipment of the armed forces of these countries. The provisions of thislegislation authorized; (a) training in the US; (b) provision to trainees ofquarters, and other Items which could be furnished in kind; <c) furnishing services, technical Information, and materialsfor maintenance of equipment In the possession of the other nations; and (djmateriel. Thc bill speciOcallythat materiel procured by thc US for transfer would be paid for at not less than thc cost to thc US; that materiel procured for US armed forces and not declared surplus, should, If transferred, be paid foralr valua; and that. In ananglng transfers, first consideration be given to requiring thc other countries In turn to transfer to the USItems In their possession, payment for which by the US, at values computed on the same basis as those of US surpluscould be offset against prices charged for US materiel furnished these counlncs. Kelther07 did Congress act on this proposed legislation.

3. Implementation.

nd-Lease the US transferred to the Latin American Republics, with the exception of Argentina, military equipment andamounting to5 million In which includesillion In services and miscellaneous. Brazil and Mexico, both of which furnishedforces, were the recipients of the largest quantities of materiel.

In the absence of enabling legislation to Implement the Western Hemisphere Defense Program, the Interim Allocation Program,terminated inas estab-

lished5 and approved by the lTcsident of tbc US. It provided for the transfer of certain war materiel to the Latin American republics under the Surplus Property Act. Materiel transferred to the Latin American republics totaled3mall amount of which is still on contract but undelivered. Materiel transferred under this program varied from that of Brazilnfantry divisionnfantry rifle companyir force: 4bomberighter squadronransport squadrons) to that for Costa Ricanfantry company less weaponsThe military equipment and supplies transferred under the Interim Allocationwere based insofar as possible on tbe contemplated needs of the various countries as envisaged under thc Western Hemisphere Defense Program and thc equipment already transferred under thc Lend-Leasc program and Surplus Property AcL

Argentina, which had not been permitted to participate inase, or In the early stages of the Interim Allocation Program, was subsequently brought Into the proposed arms-standardization program. Under thc Surplus Property Actrgentinax batteries ofm antiaircraft artillery and other miscellaneous equipment, andthc terms of thc American RepublicsS) It has acquired to0 of miscellaneous arms and

4. Non-standard Purchases.

Non-US purchases by Argentina and thc Dominican Republic up9 have been of sufficient magnitude lo affect the standardization-of-arms program. In the case of Argentina, thc air force, when present purchases now in the process of delivery are completed, willritish andtalian modern combatritish andtalian modern training aircraft,Scombat aircraft andS obsolete and obsolescent training aircraft, in an air forceircraft (including those onofre al present Argentine-manufactured. These figures do not Include administrative aircraft nor the alrcruft that

Argentina will produce Thenaval force, thc major vessels of which

tine aircraft production, both in design5 Canadianrigates <2

lype. has been Influenced moreritish destroyers. Tlic

than by any other country. TheRepublic's air force now has 70

Republic's naval purchases since Worldtraining and obsolete combat aircraft and

II have resulted In the DominicanBritish surplus-type combat aircraft with 5

havingS vessels (frigates) ln asurplus-type combat aircraft on order.

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