DEPARTMENT OF STATE Memorandum of Conversation
DATE: July 20, 1950
SUBJECT: Accelerating the MDAP
PARTICIPANTS: The Secretary Mr. Spofford Mr. Ohly Mr. Nitze
COPIES TO: Miss Evans
The Secretary read the attached memorandum and agreed that these were the points on which it was necessary to obtain a decision. He decided that the best way in which to get a decision promptly was to arrange a meeting with Secretary Johnson, General Bradley, Mr. Harriman and Mr. Spofford. He telephoned Secretary Johnson \(see attached transcript of conversation\) and arranged for such a meeting to take place after the Cabinet meeting tomorrow. He felt that point 3 was not of concern to the Defense Establishment and should be taken up separately by Mr. Harriman with Mr. Foster. It should, therefore, be eliminated from the memorandum which will be shown to Secretary Johnson and General Bradley at tomorrow\'s meeting. He felt that all four points, however, should be cleared with the President.
The Secretary asked whether it was advisable to have Ohly or Lemnitzer accompany Spofford. Ohly felt that it was necessary that they both be here to prepare the presentation for Congress, but that Jack Bell should accompany Spofford. The Secretary agreed to this.
Ohly raised the question as to whether agreement should be obtained from the British and the French that those items which could be procured in Germany under existing regulations and limitations should be procured there. The Secretary agreed that it would be appropriate to raise this question with the British and the French now.
S/P:PHNitze:a
Department of State POLICY PLANNING STAFF
July 20, 1950
S – Mr. Secretary
Points on Which it is Necessary to Have a Decision Prior to Mr. Spofford's Departure to London
\(1\) That the Joint Chiefs of Staff force requirement estimates for the Mid- Term Defense Plan will be promptly made available to the necessary people as a basis for the production and economic planning which must be done in preparation for the request to Congress in August of an expanded MDAP program. As a minimum these force requirement estimates should be made available to FMACC through General Lemnitzer, Mr. Spofford, the Standing Group, and through Mr. Spofford or a representative of the Standing Group to the Deputies, and the requisite parts of the NAT planning machinery.
\(2\) That Mr. Spofford is authorized to indicate to the NAT representatives that the administration is prepared to recommend to Congress an increased MDAP program of the order of magnitude of $4 to $6 billion additional and with greater flexibility as to making dollars or materials available, as for example, to cover the economic impact of increased military production not otherwise coverable and for off-shore procurement, provided the other NAT countries are prepared to go forward promptly with the necessary measures to implement a program of the order of magnitude indicated by the Joint Chiefs of Staff paper.
\(3\) That the United States is prepared to recognize that the drastic reorientation of the European economy and the deferring of presently planned capital investment programs which will be required to implement the above program may make a continuation of E.C.A. type assistance after 1952 necessary.
\(4\) That the United States is prepared to make available to the NAT countries designs of modern defensive weapons \(provided they put into effect adequate security arrangements\) possibly via a special development committee to be set up under Standing Group in Washington.
\(Printed initials\) RHN
Paul H. Nitze
July 20, 1950
Points On Which It Is Necessary to Have A Decision Prior to Mr. Spofford's Departure For London
1\) That the Joint Chiefs of Staff force requirement estimates for the Mid- Term Defense Plan will be promptly made available to the necessary people as a basis for the production and economic planning which must be done in preparation for the request to Congress in August of an expanded MDAP program. As a minimum these force requirement estimates should be made available to FMACC through General Lemnitzer, Mr. Spofford, the Standing Group, and through Mr. Spofford or a representative of the Standing Group to the Deputies, and the requisite parts of the NAT planning machinery.
2\) That Mr. Spofford is authorized to indicate to the NAT representatives that the administration is prepared to recommend to Congress an increased MDAP program of the order of magnitude of $4 to $6 billion additional and with greater flexibility as to making dollars or materials available, as for example, to cover the economic impact of increased military production not otherwise coverable and for off-shore procurement, provided the other NAT countries are prepared to go forward promptly with the necessary measures to implement a program of the order of magnitude indicated by the Joint Chiefs of Staff paper.
3\) That the United States is prepared to make available to the NAT countries designs of modern defensive weapons \(provided they put into effect adequate security arrangements\) possibly via a special development committee to be set up under Standing Group in Washington.
4\) That the United States is prepared to recognize the drastic reorientation of the European economy and the deferring of presently planned capital investment programs which will be required to implement the above program may make a continuation of E.C.A. type assistance after 1952 necessary.
July 20, 1950
S – Mr. Secretary
Points on Which it is Necessary to Have a Decision Prior to Mr. Spofford's Departure to London
\(1\) That the Joint Chiefs of Staff force requirement estimates for the Mid- Term Defense Plan will be promptly made available to the necessary people as a basis for the production and economic planning which must be done in preparation for the request to Congress in August of an expanded MDAP program. As a minimum these force requirements estimates should be made available to FMACC through General Lemnitzer, Mr. Spofford, the Standing Group, and through Mr. Spofford or a representative of the Standing Group to the Deputies, and the requisite parts of the NAT planning machinery.
\(2\) That Mr. Spofford is authorized to indicate to the NAT representatives what the administration is prepared to recommend to Congress an increased MDAP program of the order of magnitude of $4 to $6 billion additional and with greater flexibility as to making dollars or materials available, as for example, to cover the economic impact of increased military production not otherwise coverable and for off-shore procurement, provided the other NAT countries are prepared to go forward promptly with the necessary measures to implement a program of the order of magnitude indicated by the Joint Chiefs of Staff paper.
\(3\) That the United States is prepared to recognize that the drastic reorientation of the European economy and the deferring of presently planned capital investment programs which will be required to implement the above program may make a continuation of E.C.A. type assistance after 1952 necessary.
(4) That the United States is prepared to make available to the NAT countries designs of modern defensive weapons \(provided they put into effect adequate security arrangements\) via a special development committee to be set up under Standing Group in Washington.
Paul H. Nitze