7 April 1965
MEMORANDUM FOR THE RECORD
SUBJECT: Conversation with AMBANG/1, 7 April 1965
1. Subject phoned (collect) from San Juan on the morning of 7 April 1965. The undersigned, whom he calls Antonelli, spoke with him. AMBANG/1 (A/1) wanted to know whether we had any further information on the status of the legal case arising from the seizure of the arms being manufactured for him by the Erquiaga Manufacturing Company. He was told that we had received further information indicating that the case was undertaken by the state authorities and that there were some irregularities involved in the search warrant. Under the circumstances, we plan to take no action to interfere with the legal process since it would appear that the manufacturer has a very good case, and since federal involvement with publicity hungry state authorities could lead to totally counterproductive publicity and complications. A/1 said he understood and agreed. He asked how long the matter might be delayed. He was advised that this would have to be checked with the manufacturer's attorney, but since the seizure took place, it would appear that the court would have to take prompt action to rule on its legality. He was told that a hearing was scheduled for 6 or 7 April on the matter.
2. He said that he had checked with his man in Costa Rico who had spoken with President Orlich and with Daniel Oduber. They had advised that they cannot receive the arms in Costa Rico at the present time because of publicity and scandal raised by the opposition. They are willing to consider the matter later. A/1 said that the manufacturer had been unable to locate in his files the original purchase order for the arms which was signed by Oduber. A/1 said that he has a signed copy in his possession. He was advised not to use this without checking with Oduber since its use might hurt Oduber's chances of winning the presidential elections. A/1 said he would not use this paper since he agreed that the friendship of the PLN is more important, even than the arms, which are the key to his current plans. He praised the PLN's past support and said he did not want to risk losing this support.