CABINET MEETING, DECEMBER 12, 1950
All members present
THE PRESIDENT
Has been considering proclamation of national emergency. Has consulted economic advisors and other officials. Will have meeting with bi-partisan Congressional leaders on program at 10:00 AM tomorrow. Will have to set up a Defense Production Agency similar to old WPA in World War II. Has asked Chas. Wilson of GE to head up such an agency if and when it is set up.
Read a report to Cabinet from CIA to National Security Council on possible effect on Russia if total mobilization in U.S. is accomplished.
Intention is to proclaim a. national emergency. That means wage and price controls. Has asked Budget to work with Interior, Commerce, NSRB and Labor & Defense to coordinate activities under the new agency head.
It now appears that we are faced with an all out situation.
ACHESON
The Soviet propaganda technique is to warn that any effort to increase U.S. strength is another step toward war. It is our duty to offset this propaganda to get our war economy under way with all speed and total effort.
Sounds very much like a CIA evaluation paper.
MARSHALL
ACHESON
SNYDER
10:00 AM Wed
MARSHALL
Appropriations hearings indicated no opposition to requests for Defense appropriations. If any criticism it has been we are not asking for enough.
Plans now are for 1,200,000 by the end of March in armed forces.
Production sights are being raised and the program is being accelerated with all possible effort.
During hearings the subject of controls has provoked the most interest.
McArthur [MacArthur] was queried about the idea of Cease Fire Order in Korea. He agreed with views of Security Council on steps to be taken if such an order is issued.
DONALDSON
Millions of dollars in P.O. money orders being sent to Philippines and then go to Hong Kong for cashing. The orders are then forwarded to the Chase National Bank in New York where they are exchanged for American dollars. These in turn go for purchase of American goods for shipment to Communists in China.
TREASURY
The Dept is now working on this black market operation with a view to wiping it out.
BRANNAN
Just returned from South America and found an awareness of the serious situation now being faced by the U. S.
HARRIMAN
Supported and emphasized the position of State in stepping up our war effort. We must develop unity among the free nations. We can't do the job alone.
TOBIN
Is disturbed about morale of the people in U.S. The press is doing a ruthless and damaging job on tearing down the morale of our own people. Suggested that publishers of U.S. be brought to Washington and told of their responsibility to encourage American patriotism and morale.
SAWYER
We should do as Tobin suggests but broadcasters are also a vital force in such a program. One of our real problems today is whether we are going to save the Bill of Rights. Commentators and columnists have a right to say anything they please about the Govt and its officers - which they see fit to abuse. Suggested more use should be made of the Advertising Council to come up with program to offset the damage being done.
STEELMAN
Suggested calling a meeting of advertising council and have Cabinet officers explain to them what the seriousness of the situation is.
BARKLEY
Reviewed calendar of Senate legislation.
11:15