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  4. Document 390

390. Memorandum From the Assistant Secretary of State for Policy Planning (Bowie) to the President’s Special Assistant for National Security Affairs (Cutler)1

Washington , February 6, 1957 .

SUBJECT

  • NSC 5703
1.
In briefing the Secretary today on NSC 5703, we made two points with reference to the proposed military aid program of $212 million through FY 1960:
a)
The total costs assume completion of the military construction program by FY I960. Consideration is now being given to phasing the program through FY 1962. It is estimated that this would reduce the total through FY I960 by about $22 million.
b)
The total costs include construction of two airbases at Qom and Kerman Shah. There is still considerable doubt about whether or when they should be built. If their construction were eliminated or postponed beyond FY 1960, it is estimated that the program would be further reduced by about $21 million.
2.
The net effect of both actions, if decided upon subsequently, would be to reduce the total costs of the program through FY 1960 to about $169 million or substantially below the Prochnow B estimate of $197 million.
3.
The language for these qualifications (which we would ask to have inserted as footnotes to the revised table on page 23 of the Financial Annex)2 was agreed to at the working levels of State and Defense yesterday. It is intended to clarify and make more specific the final paragraph of the Defense Comments, at page 24 of the Annex.3 The text is now being cleared in both Departments for transmittal to you prior to the NSC meeting.
4.
I have thought that you would wish to know that these points will be in the Secretary’s mind during the Council’s discussion of NSC 5703.
Robert R. Bowie 4
  1. Source: Department of State, S/S–NSC Files: Lot 63 D 351, NSC 5703 Series. Secret. Drafted by William Leonhardt, Department of State NSC Planning Board Assistant.↩
  2. These changes were reflected in the Financial Appendix to NSC 5703/1, Document 392.↩
  3. The Defense comments on NSC 5703/1 are part of the Financial Appendix.↩
  4. Printed from a copy that bears this typed signature.↩