Britain's last battleship HMS Vanguard was offered to Chile along with
three Jamaica class cruisers and six Battle class destroyers in 1959.
http://history.state.gov/historicaldocuments/frus1958-60v05/d28
28. Telegram From the Department of State to the Embassy in the United
Kingdom1
Washington, December 4, 1959—8:34 p.m.
4410. Department increasingly concerned seemingly indiscriminate offer
naval vessels by UK to LA countries in disregard economic drain and
danger armaments race, increasing tensions. We refer immediately to
Peru-Chile situation, also affecting Ecuador, Argentina, etc.
Therefore request you approach Foreign Office along following lines:
(1) We have recent reports following UK sales or offers: (a) cruiser
Newfoundland sold to Peru and cruiser Ceylon reportedly sold (Peruvian
Embassy informed us December 1 of latter purchase, one week after
conveying GOP’s categorical assurance there would be no purchase
second cruiser, although now reported may have been secretly purchased
same time as first); (b) battleship Vanguard, 3 Jamaica class cruisers
and 6 Battle class destroyers offered to Chile; (c) Peruvian report
cruiser Ceylon offered to Ecuador and possibly Chile which GOP gives
as excuse Peruvian purchase; (d) three Battle class destroyers offered
to Argentina.
(2) Dept appreciates sale British naval vessels matter between two
countries involved and understands problems concerning UK relations LA
countries. However, believe incumbent US and UK encourage restraint on
excessive military expenditures LA countries whose Governments have
severe problems exercising fiscal responsibility and whose military
often have considerable fiscal autonomy.
(3) LA economies can ill afford excessive military expenditures which
place strain on Governments’ finances and retard economic development.
(4) US providing credit and technical assistance for economic
development, budgetary support, exchange relief, etc., which difficult
justify in face of military expenditures in excess needs hemispheric
and national defense. British will appreciate that LA failure
concentrate resources on civilian economy increases demands for US
assistance and aggravates US balance of payments problem to which UK
has already responded.
(5) LA Communists and nationalist extremists incite demands for more
arms in order weaken economies and frustrate our endeavors.
(6) Excessive military expenditures often place responsible civilian
officials in delicate position. Our Embassy reports Peru Prime
Minister Beltran (British educated, friend of US–UK, who attempting
develop sound economic-financial-social program) so discouraged over
inability stop cruiser purchase that now thinking of resigning.
(7) Sales naval vessels give impetus disastrous arms race, increase
tensions between LA countries. Pressures already growing in Chile to
match first Peruvian cruiser, can be expected become irresistible when
second generally known. Chile-Peru relations may reach low point.
Ecuador uneasy.
(8) U.S. has been attempting stimulate LA initiative for arms
limitation. We were encouraged by recent public statement Chilean
President Alessandri favoring limitation, publicly endorsed by
Peruvian President Prado; US applauded in statement November 30.
Peruvian second cruiser purchase represents serious set-back this
effort.
(9) We oppose excessive military purchases regardless of country of
purchase, including US (e.g. our refusal make excessive aircraft sales
Peruvian Air Force).
(10) If British raise question US military assistance (including
prospective ship loan) LA countries, you should explain not
inconsistent since purpose this modest program is to relieve part of
economic-financial burden LA countries maintain minimum forces
necessary for hemispheric defense.
Embassy should make following specific requests UK Govt soonest:
(1) Present status second cruiser sale to Peru.
(2) If not too late and if can be done gracefully express hope UK can
avoid completion this sale. (Our Ambassador Lima making top level
attempts dissuade GOP from purchase, with little expectations
success.)
(3) In any case strongly urge UK consider future confidential
coordination with US before undertaking offer or sale major armaments
LA in order provide opportunity compare notes economic and military
situation prospective purchaser and determine advisability discourage
purchase. Report UK reactions.
Herter
1 Source: Department of State, Central Files, 720.5621/12–459.
Confidential. Drafted by Richard A. Poole and James D. Moffat, and
approved by Joseph A. Silberstein. Repeated to Lima, Santiago, Quito,
Bogotá, Buenos Aires, Rio de Janeiro, and Caracas.