About one month ago four representatives from the Dominican Republic visited this office to discuss the possibility of procuring in Canada from our surplus stocks certain arms, ammunition and military equipment for the use of the army and police forces of their country. I pointed out that Canada did not traffic in arms and ammunition but, that if we received a firm request showing in detail the articles required, the purposes for which they would be used, and the fact that payment would be made in U.S. dollars, we would examine the situation to determine (a) what items were available in War Assets surplus stocks (b) whether the necessary authority for the sales could be obtained.

Subsequently a detailed list covering some 54 items, ranging from Sherman tanks and anti-tank guns to binoculars, was received. The list was submitted to War Assets Corporation who reported that of the listed items we could supply the following:

200,000 rounds of ammunition cal 45
50 man-carrying parachutes
100 supply-dropping chutes
500 pistols cal. .45
500 revolvers cal, .38
200,000 rounds ammunition capsules for pistols cal .38
100 binoculars graduated

On receipt of this information the Canadian Commercial Corporation contacted the representatives of the Dominican Republic to advise them of availabilities and to ascertain whether they wished to make a firm offer for this ammunition and equipment. The Dominicans replied that they did not propose taking further action at that time as they expected negotiations then under way in Washington to result in their complete requirements being met from U.S. stocks.

As we had previously been advised by the State Department that the Dominican Republic was on the U.S. "black list" we at once asked our Ambassador in Washington to approach the State Department and enquire whether there had been any recent change in U.S. policy towards that country. In reply we received Teletype WA-1821 of June 13th,† copy of which is attached hereto, and which states that the expressed opinion of the Dominican Republic representatives that their requirements would be met in the U.S. could he nothing more than the result of wishful thinking.

In addition you will note that the State Department advises that it will he particularly careful of any sales of arms to Mr. Trujillo¹⁰ who appears, from accumulating evidence, to he assisting actively revolutionary movements in Venezuela and Cuba. It is estimated that during his seventeen years' power in the Dominican Republic he has banked, for his own account, between 575-100,000,000. at least part of which he is prepared to use to finance revolutions in other countries. It has been revealed that he financed the purchase of a cargo of arms which were being smuggled from New Orleans on ships which were seeking clearance — ostensibly for British Honduras — to engage in the banana trade but which were, in fact, destined with their cargo of arms for Cuba. It is also known that he acquired through third parties some aircraft which could he converted easily for war purposes.

Today a communication was received from the representatives of the Dominican Republic asking the Canadian Commercial Corporation to quote prices on the items of ammunition and equipment which are available and which I have listed above. In view of the report received from Washington I should think that we would not wish to sell to that country any articles other than the man-carrying parachutes (50) and the 100 binoculars, both of which could be classified as non-military equipment. However, as the amounts derived from these sales (prices have not yet been quoted by War Assets Corporation) would be so small I suggest that we might best reply to the Dominican Republic that the articles previously listed are no longer available for disposal.

H.O. MORAN

¹⁰Le président Rafael Trujillo y Molina.
President Rafael Trujillo y Molina.