CABINET MEETING, JULY 14, 1950
10:00AM
Brannan absent
Symington, Harriman, Gen Bradley, Gen Vaughan, Gen Landry also present
THE PRESIDENT
Asked Gen Bradley to brief Cabinet on Korean War. Gen Bradley also showed troop concentrations in China. Described activities in Middle East and Western Europe.
Will now have meetings
Tues at 4 PM
Fri at 10 AM
And will suspend Cabinet lunches on Monday until emergency end. Also suggested regular Security Council meetings be suspended and only call such meetings when necessary. Hopes to be ready with new defense budget message early in the next week. It will be sent to Congress. The Pres. may make speech to country following budget message delivery to Congress.
ACHESON
State is working with Pentagon on a paper showing the danger areas.
(1) Soviets may work thru satellites before contemplating all out total war.
(2) There is little evidence that Soviets will not do all the possibilities.
(3) North Atlantic countries have secured impression that a local situation (Korea) was successful in pushing around greatest western power. Similar reactions have taken place in Far East, India and other countries.
Nehru is trying to get recognition in U. N. for China, India, etc. which in effect will divide, break up the United Nations.
Troop movements by U. S. will impress a lot of countries but not Russia. Russia will be impressed by step up in industrial production.
THE PRESIDENT
Will discuss this with Congressional leaders Monday and will implement with program following budget message to Congress.
TREASURY
We have a good cash position. We should be able to carry on until January but in event of prolonged expenditures new tax program will be essential.
BARKLEY
It is important to have such legislation acted upon before January while present Congress is in session.
JOHNSON
Defense and State are working harmoniously at all levels.
SAWYER
There is great concern among businessmen about future plans - controls - allocations - rationing, etc. Our position now as compared to 1940 in supplies such as steel - ships in moth balls, etc.
Will ask Pres. to study proposed statement about our present situation so business will not get panicky. Pressure is mounting for sane statement by the govt. as to its future position.
CHAPMAN
We have shortage of 7 basic materials which are vital. We also have less than 15% of power available for any new plants and projects. This position is much less favorable than we were in 1940.
HARRIMAN
Control of economy must be attained. Inventory controls - allocations and other restrictions are vital and necessary. Voluntary controls will not work.
BARKLEY
Is trying to whip thru the appropriation bill which is dragging slowly.
11:00 a.m.