Office of the Historian

246. Memorandum of a Telephone Conversation Between the Secretary of State and the Deputy Under Secretary of State for Political Affairs (Murphy), Washington, September 14, 1957, 10:46 a.m.1

Washington, September 14, 1957, 10:46 a.m.

TELEPHONE CALL FROM MR. MURPHY

Re the telegram on Korea, charging to MAP of equipment.2 M. said after Reinhardt had spoken to Quarles, he, M., had a further discussion with Quarles and was told that this pricing is a standard formula. Sec said he did not intend to accuse Quarles of trickery, but he was interested in knowing what it would cost. Sec said the purpose of the Korea program was to cut down the charge against our mutual security program. Sec said naturally Defense would prefer to turn over equipment to Korea and get money for it than leave it sitting in warehouses. Sec. said perhaps amount could be cut from 50 million to 25 million; 50 million was quite a bit of money for Korea. M. said 50 million was not a firm figure, there were two items in it which might well be reduced. Sec said he was interested in knowing what the impact would be on other aspects of our military assistance budget, to NATO for example. Sec said you could not deal with one aspect without regard for the other; does our budget take account of [Page 509] this. M. said Barnes’3 office said they can absorb it without damage to other programs. Sec said they had claimed the cut itself would damage the program, and now they say they could take another 50 million. M. said what he wished to emphasize was that this was not an arbitrary price. He said he thought that was what the Sec had been concerned about. Sec said what he was concerned about was that he had been told that in view of the Congressional cut in military assistance program there would be an impact on our ability to modernize NATO, is this still further hitting it and which is more important? M. said Barnes said not, but he would look into it further. Sec wondered whether Bureau of Budget had anything to say. M. said he had not touched base with them and should he. Sec said no. Sec said if people familiar with the impact on NATO, Vietnam, etc., think this is all right, it was all right with him. M. said he would be assured that it was cut down to the very minimum.

  1. Source: Eisenhower Library, Dulles Papers, General Telephone Conversations. No classification marking. Prepared by Carolyn J. Proctor of the Secretary’s staff.↩

  2. Reference is to telegram 229, infra. In a September 13 memorandum to the Secretary, Deputy Assistant Secretary Jones noted that the Department of Defense had revised the language of the proposed cable to Seoul to meet the suggestions made by Dulles during the September 5 meeting with Quarles (see Supra). The Defense position on modernization of South Korean forces was that General Decker could provide what was necessary out of surplus American equipment in Korea. Dulles indicated, in a handwritten note on the memorandum, that he was prepared to clear the cable “on assumption that ‘surplus’ to ROK will not unduly burden MSA funds.” Dulles’ reservation prompted another round of discussions between officials of the Departments of State and Defense.

    According to a memorandum from Deputy Assistant Secretary Gardner E. Palmer to Jones, September 14, he took up the Secretary’s reservation with Deputy Assistant Secretary of Defense Karl G. Harr on September 13. Quarles discussed the cable later in the day with Department of State Counselor G. Frederick Reinhardt; Reinhardt took it up with Murphy; and Murphy, as indicated in the memorandum printed here, secured the Secretary’s authorization to transmit the cable without his prior reservation. Reinhardt informed Harr of Dulles’ approval and Harr responded that Quarles could give his personal assurance that the scope of the proposal would not prejudice the aid program. The message then went to the White House for approval and Cutler took it to the President at Newport, where it was approved on September 16 for transmission. The September 13 memorandum by Jones is in Department of State, Central Files, 795.00/9–1257. The September 14 memorandum by Palmer is ibid., FE Files: Lot 59 D 19, Korea 1957. Cutler’s September 17 memorandum to the Secretaries of State and Defense, indicating the President’s approval, is ibid., S/P Files: Lot 62 D 1, Korea, US Policy Toward (NSC 5702, 5702/1, 5702/2).

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  3. Robert G. Barnes, the Under Secretary’s Special Assistant for Mutual Security Affairs.↩