DEPARTMENT OF STATE THE SECRETARY
July 20, 1950
MEMORANDUM OF TELEPHONE CONVERSATION
Participants: Secretary Johnson Secretary Acheson
Secretary Acheson called Secretary Johnson this afternoon to ask that a meeting be arranged following Cabinet meeting Friday between Secretary Johnson, General Bradley, Mr. Harriman, Mr. Spofford, and Secretary Acheson. He explained to Secretary Johnson that this was in connection with instructions for Mr. Spofford who was leaving Saturday for the NAT Deputy meeting.
The Secretary mentioned that they hoped to get the NAT countries to go forward with a defense program of a magnitude as decided by the JCS. The Secretary said that he thought if the Europeans did this, it would be necessary for the United States to give them direct help on this and economic help to alleviate maladjustments which would result from diversion of production from exports to defense products. He would like to have it clear for Spofford before he left that Spofford should be authorized in his discussions to assure the Europeans that if they would take on whatever program was decided on, Spofford would be authorized to say that a request would be made to the Congress to make up the difference which the Secretary thought was between 4 and 6 billion dollars. Secretary Johnson said that he was not certain that this figure was exactly the right one, but that whatever the figure was there would have to be some economic help.
Secretary Johnson said that Mr. Harriman had talked with him about this matter and had convinced him that it would be necessary for the Europeans to have economic help. However, he had talked with his Service Secretaries who were quite disturbed about the proposals for economic help. Johnson said that the Service Secretaries also thought that the entire program should be handled at the pentagon.
Secretary Acheson said that he was firmly of the opinion that, since it was a matter in the first place of negotiations between governments to get the program agreed and started, that phase must be handled diplomatically. But, so far as the actual handling of munitions was concerned, the Pentagon, of course, would have charge of that. Secretary Johnson said that he was not in disagreement with this; and that he had asked the Service Secretaries to go over and talk with Ambassador Harriman who had outlined to him quite forcefully the necessity of economic aid.
Secretary Johnson suggested that Mr. Acheson get in touch with Ambassador Harriman and tell him just what it was that was bothering the Service Secretaries and ask him to talk quite forcefully to the Service Secretaries when they met with him. Secretary Acheson followed this suggestion and called Ambassador Harriman who said he was just about to meet with the Service Secretaries and would keep these points in mind.
It was agreed that the meeting between Secretaries Johnson and Acheson, Ambassador Harriman, Mr. Spofford and General Bradley should take place directly following Cabinet meeting tomorrow.
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