33. Letter From the Ambassador in Korea (Briggs) to the Assistant Secretary of State for Far Eastern Affairs (Robertson)1

Dear Walter : Ty Wood’s office has recently sent to Washington a carefully prepared presentation of what it is hoped to accomplish under the aid program for Korea in FY 56.2 The document was drafted in connection with FOA’s submission of data and estimates to Congress. Copies should be in Washington this week.

One aspect of this matter gives me some preoccupation. That is the lack of wholehearted collaboration on the part of President Rhee, particularly with respect to the economic side of the program. Instead of helping row the boat, Rhee persists in throwing out anchors. Instead of collaborating in strengthening the dike, Rhee keeps boring holes in it, so that Ty Wood has to engage in a series of emergency plumbing operations at the expense of progress with the main construction. From my telegrams and despatches this situation will of course be familiar to you, and in this connection I refer to Despatch No. 213 of March 16, 1955,3 entitled “Comments on ROK Performance Under the Minute of Understanding”.

In my judgment, unless we can obtain more effective collaboration from the Rhee Government and greater compliance with the commitments contained in the Minute of Understanding of November 17, 1954, our program is likely to founder, regardless of the [Page 63] amount of American aid which Congress may vote for the economic rehabilitation of Korea. I refer to such specific problems as pricing aid goods into the economy, ensuring realistic exchange rates, and permitting ROK dollars to be used to purchase freely in Japan as elsewhere. In various other areas, such as encouraging private enterprise and creating conditions favorable to the entry of American capital, ROK performance since the Agreed Minute was signed has been almost imperceptible.

Consequently, if I were called upon to comment on the situation at a Congressional hearing in Executive Session, I would have to call attention to the lack of cooperation from the Republic of Korea in the economic field, and perhaps suggest the need for some Congressionally encouraged sanctions to obtain future ROK collaboration, including wise and timely use of Korea’s own resources. Otherwise, would it not be well to cease the bickering which has so delayed our program and weakened confidence in it locally, resign ourselves to less ambitious economic goals, and so inform the Congress?

I am not, of course, suggesting that I participate in the presentation of Korean aid to Congress. On the contrary, with a new Ambassador shortly taking over,4 and with my own transfer to a different area, it might be better that my association with the problem end with my departure from Korea. Nevertheless, because of our difficulties with the Rhee Government over economic aid and my belief that unless those difficulties are resolved our program may fail to measure up to our own hopes and expectations, I felt you would be interested in having these observations filed in the twilight of 30 months of service in this battered and valiant country. I have genuine affection for Korea and for the Korean people, but I recognize it as a fact that some of the policies followed by President Rhee have not been conducive to the success of the efforts of our Government to rebuild Korea, and that if persisted in they will at the least seriously handicap our future efforts.

Sincerely yours,

Ellis

P.S. I enclose an extra copy of this letter should you wish to pass it along to Bill Lacy for his information.5

E.O.B.
  1. Source: Department of State, Central Files, 795B.5–MSP/3–3055. Confidential; Official–Informal. Copies were sent to C. Tyler Wood and General Maxwell D. Taylor.
  2. Not found in Department of State files.
  3. Despatch 213 from Seoul, March 16, transmitted a draft of a letter prepared by Henry Costanzo, Treasury Representative in the Office of the Economic Coordinator, in reply to the March 2 letter from Paik Tu-chin to Wood (see Document 28). The Embassy noted that, in view of the withdrawal of Paik’s letter by the South Korean Government, Costanzo’s letter was not delivered to Paik. (Department of State, Central Files, 895B.00/3–1655)
  4. William S.B. Lacy was appointed Ambassador to the Republic of Korea on March 24. Briggs left Seoul on April 12 and Lacy presented his credentials on May 12.
  5. A marginal notation on the source text indicates that a copy of this letter was sent to NA for Lacy’s attention.