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# Irelligence Information Re vrtThis material contains Information afecting the National Defense of the United Stof the Explenage Lows, Title 18 U.SC. Soc. 793 and 794, the ssion or revelaties of whberized person is pratitted by low.CONTROLLED DISSEM C-O-N-P-I-D-E-N-T-I-A-L NO DISSEM ABROADCOUNTRY Honduras/El Salvador REPORT NO. OO-B-321/26113-69SUBJECT Honduran Government Interest in DATE DISTR 11 SEP 1969Purchasing Weapons to Arm Reserves/Alleged Purchase of Combat Aircraft by PAGES 1Honduran OfficialREFERENCES C-DC9-55300(2356)DATE OF INFO. Aug 69 and earlierPLACE & DATE ACQ. Tegucigalpa/Aug 69.THIS IS UNEVALUATED INFORMATIONSOURCE Naturalized US citizen who worked and lived in Honduras for a number of years.He has social and business contacts with officials of the government, thearmed forces, and the business community.[This report was developed by an Army representative assigned to the office ofpreparation.]1. During early August 1969 a close business associate met with Colonel (fnu)   Coreccolli (phonetic) and members of the Honduran Army General Staff. Colonel   Coreccolli and members of the Staff were alarmed by the continuing reports of   arms and ammunition stockpiling by El Salvador. These individuals were of the   opinion that the armament of the Honduran Armed Forces was inferior to that of   El Salvador.2. During the meeting Colonel Coreccolli inquired about the possibility of a legal   or illegal purchase of approximately 2500 M-1 rifles and an undetermined amount   of .30 caliber ammunition from US sources. He explained that the weapons were   needed to arm personnel with prior military service in case of a renewal of   hostilities with El Salvador. These individuals were considered to be a re-   serve for the Honduran Armed Forces.3. My associate explained to Colonel Coreccolli that under the circumstances the   US Government would not issue an export permit for the armaments. As for il-   legal sources my associate disclaimed knowledge of any. He also considered   the transportation problem. Colonel Coreccolli stated that if acquired the   weapons could be smuggled aboard a Honduran refrigeration ship which was an-   chored in the Miami River at that time. Following this Colonel Coreccolli   closed the meeting indicating that he was going to explore other possibilities.4. Following the meeting my associate had a conversation with Rigoberto Sandoval,   a member of the Planification Board. Upon being informed of the meeting, Sandoval   warned my associate to be careful in any dealings with Colonel Coreccolli, since   he was known as a corrupt government official, a "thief". Sandoval stated that   this was the opinion of President Oswaldo Lopez Arellano who distrusted Corec-   colli. A few days later my associate learned that Ricardo Zuniga, Minister of   the Presidency, has been given the task of purchasing arms and ammunition for   Honduras.5. Mauricio Hernandez, wealthy owner of a lumber mill in Honduras, visited the US   during the first part of August 1969. He told me that he was going to purchase   two "combat aircraft" for the Honduran Government. He did not specify the type   nor the source of the aircraft. About a week later I had a telephone conver-   sation with Hernandez, during which he told me that he had been "successtul" in   his purchasing mission. He did rot give any details. - end -U YES. C-O-N-F-I-D-E-N-T-I-A-L S YESThe disseminanen of this document is hmited to civilan employees and active duty military personnel within the intelligence componentsof the USIB member agencies, and le those senior officials of the mencer agencies who must act upon the informahon. However, unless specifically commoiledin accordance with paragraph & of DCID 1/7, à may be released to those components of the departments and agencies of the U. S. Government directlyparticipating in the production of Nahonel Intelligence. IT SHALL NOT BE DISSEMINATED TO CONTRACTORS It shall not be disseminated to organizaFions or personnel, including consultantt, under a contractual relationship to the U. S. Government without the written permission of the originator.