Foreign Relations of the United States, 1946, General; the United Nations, Volume I

Secretariat Files

Memorandum Prepared for the Secretary of State’s Staff Committee⁴

top secret
SC–208

[Washington,] December 20, 1946.

Policy Relative to the Transfer to Foreign Countries of Military Supplies of U.S. Origin

The attached document containing recommendations originating in the Policy Committee on Arms and Armaments is presented for the consideration of the Committee. The policy set forth herein, if approved, will supersede the previous Staff Committee decision expressed in SC/R–184, February 5, 1946,⁵ as amended by SC/R–187, February 21, 1946,⁶ and provide the State Department representative on SWNCC with a policy paper for guidance in recommending a revision of SWNCC 202/2, March 21, 1946.⁷

[Annex]

problem

To set forth a policy governing all transfers to foreign countries, whether by sale or otherwise, of military supplies of U.S. origin whether such supplies are of U.S. Government or private ownership.

Both SWNCC 202/2 and SC/R–184, as amended deal only with United States Government-owned military supplies. They do not purport to state policy governing the exportation through private channels of arms, ammunition or implements of war. These policies are limited in scope and, to some extent, inconsistent and out of date. It is, therefore, desirable to restate the policy to govern all transfers.

recommendations

It is recommended that:

1. It be the long-term policy of the United States to limit drastically the transfer to foreign countries of military supplies of U.S. origin. Pending effective United Nations action to bring about a satisfactory system for the regulation of armaments and until the United States is satisfied that its national security as well as the security of other peace-loving states is assured, the implementation of this long-term policy must be qualified by factors of more immediate concern.

2. Except as provided in paragraph “4” below, it be the policy of the United States to authorize no transfers to foreign countries, by sale or otherwise, of military supplies of U.S. origin unless such transfers fall within one of the following categories:

a. Retransfers by the United Kingdom to British Commonwealth forces in Japan of military supplies, whether acquired by the United Kingdom under lend-lease or under the surplus property agreement, subject, in the case of equipment of the lend-lease inventory, to the qualifications specified with respect to such retransfers by the Policy Committee on Arms and Armaments;

b. Sales to France by the Foreign Liquidation Commissioner of reasonable quantities of military supplies, except in cases which appear to relate to Indochina;

c. Transfers to the Philippine Republic pursuant to Public Law 380, 78th Congress, approved June 29, 1944, and Public Law 454, 79th Congress, approved June 26, 1946 (“Republic of the Philippines Military Assistance Act”);

d. The interim program for the sale of specified amounts of military, naval and air equipment to other American republics as proposed by the War and Navy Departments and approved by the State Department. The program is being executed under the provisions of the Surplus Property Act;

e. Transfers to Canada for joint defense, pursuant to the request of the Canadian Government. These transfers are being made under the provisions of the Surplus Property Act; and

f. Transfers of small quantities of military supplies of U.S. origin, when such transfers are not considered to have any special political or military significance.

3. Transfers falling within any one of the categories set forth in paragraph “2” above, excepting those in category “f”, may be made without reference to the Policy Committee on Arms and Armaments, but that Committee shall be kept currently informed of any such transfers as from time to time are made. Transfers falling within category “f” of paragraph “2” above shall be made only upon approval of the Policy Committee on Arms and Armaments or in accordance with such rules as that Committee shall from time to time promulgate for the purpose.

4. In addition to the transfers mentioned in paragraph “2” above it may from time to time be in the interest of the United States to authorize transfers to foreign countries by sale or otherwise of military supplies of U.S. origin under one or more of the following conditions:

If the transfer is determined to be reasonable and necessary;

a. To enable a country to maintain internal order in the reasonable and legitimate exercise of constituted authority, or

b. To enable a country to provide for and to exercise its right of self-defense against armed attack, a right recognized in Article 51 of the Charter of the United Nations, or

c. To assist a country to discharge its international responsibilities for

(1) Furnishing contingents to the Security Council pursuant to Article 43 of the Charter of the United Nations, and

(2) Carrying out military occupation in enemy or ex-enemy territory.

The determination as to whether or not a transfer will meet one of the foregoing conditions and is otherwise in the interests of the United States, shall rest with the Secretary of State to whom the Policy Committee on Arms and Armaments will make appropriate recommendations.

5. Military supplies of U.S. lend-lease origin now in the hands of foreign governments may remain in the hands of such governments except to the extent that the United States may wish from time to time to recapture them. The United States shall continue to reserve the right to recapture all military supplies of U.S. lend-lease origin except such as may from time to time be sold to third governments by or with the consent of the United States. Transfers by sale or otherwise by a presently-holding government to a third government shall be subject to the provisions of paragraph 2, 3 and 4 above.

6. A statement be prepared for adoption by SWNCC for the purpose of formalizing U.S. policy among the three departments concerned and for the purpose of establishing an appropriate mechanism for action on applications for transfers, as these Recommendations (paragraphs 1 to 5 above) have not been formally cleared with the War and Navy Departments.

7. The term “military supplies of U.S. origin” as used herein shall mean all articles which may be defined from time to time by or pursuant to Presidential Proclamation as arms, ammunition and implements of war, except as otherwise provided by the Policy Committee on Arms and Armaments, acting in accordance with established procedures.

facts bearing on the problem

1. The President and the Secretary of State have publicly endorsed the principles of limiting world armaments by international agreement, and this country is committed to the regulation of armaments under Article 26 of the United Nations Charter. No definitive international action has as yet been taken to this end.

2. Certain national policies have been formulated (see paragraphs 3 and 4 below) with respect to the transfer of certain types of U.S. Government-owned arms. These policies are limited in scope and, to some extent, inconsistent and out of date. There is no clear statement of policy controlling the transfer to foreign countries of U.S. Government as well as privately owned military supplies of U.S. origin.

3. The following policy regarding disposal to foreign countries of military-type surplus equipment was agreed upon by the Secretary’s Staff Committee at its meetings of February 5 and 21, 1946:

“No disposals of military-type surplus equipment should be made to arm other nations, except for (a) the transfer en bloc of military equipment left in England; (b) the program for equipping the French Army to a reasonable extent; (c) completion of the program for China begun during the war; (d) equipping Philippine forces; (e) fulfilling commitments made in the interim program for the other American republics; and (f) transfers to Canada when consistent with the program for joint defense.” (SC/R–184, as amended by SC/R–184 [187])

4. The State, War and Navy Coordinating Committee on March 21, 1946, approved SWNCC 202/2. The following comments as to the purpose and scope of SWNCC 202/2 are pertinent to the present paper:

a. Its purpose was to set forth a policy “with respect to the extent to which the United States will support foreign countries with United States military supplies for their post-war armed forces” and with respect to “whether certain lend-lease items still in existence should be withdrawn from particular foreign nations as a matter of United States or international security …”

b. It dealt only with military supplies obtainable through U.S. surplus channels or through the recapture of lend-lease articles in the hands of foreign military authorities.

c. It stated a general conclusion that “as a general guide the State, War and Navy Departments agree that it is consistent with United States policy to support forces of foreign countries with United States military supplies to the extent stated in the ‘specific conclusions’ of this paper …”

d. The “specific conclusions” were intended to set the permissive limits within which it would be consistent with the then existing national policy to support the forces of individual foreign governments. In setting forth the specific conclusions, it was recognized that they would require modification from time to time. The policies set forth under the specific conclusions are not entirely consistent with the policy set forth in SC/R–184, as amended (paragraph 3 above).

e. One of the paper’s general conclusions was to the effect that any support with U.S. military supplies should be implemented, so far as possible, within the framework of existing legislation, appropriations, et cetera.

f. With respect to lend-lease military supplies in the hands of foreign governments, it was concluded that it was not desirable to exercise generally the right of recapture, although the United States should reserve such right and should obtain agreements providing for the return of lend-lease items on demand.

5. Both SWNCC 202/2 and SC/R–184, as amended, deal only with United States Government-owned military supplies. They do not purport to state any policy governing the exportation through private channels of arms, ammunition or implements of war. Pending determination of a policy to govern private exports, the Department has used the provisions of SWNCC 202/2 and SC/R–184, as amended, as general guidance where private exports were involved.

discussion

6. It is desirable to restate the policy to govern all transfers to foreign countries, whether by sale or otherwise, of military supplies of U.S. origin, whether such supplies are of U.S. Government or private ownership.

7. In formulating any policy to govern the transfer of military supplies of U.S. origin to foreign countries, consideration should be given to the long-range objectives of the United States with respect to the regulation of armaments. These objectives arise out of the obligations shared by all members of the United Nations to work for the regulation of armaments in such a manner that:

a. The use of armed force be restricted to that authorized by the Security Council of the United Nations, except in cases of self-defense against armed attack, and for the maintenance of internal order by governments in the legitimate and reasonable exercise of constituted authority;

b. There may be minimum diversion for armaments of human and economic resources which are needed for constructive purposes in creating a peaceful and orderly world;

c. Every encouragement be given in accordance with the principles of the United Nations Charter to the application of peaceful procedures for the settlement of international disputes.

8. It must therefore be the long-term policy of the United States to limit drastically the transfer to foreign countries of military supplies of U.S. origin, since any general increase in or dispersion of armaments would jeopardize the achievement of the foregoing objectives. Over the long run, such transfers should usually be limited to those necessary to the maintenance of internal peace and order by a foreign government in the legitimate and reasonable exercise of constituted authority, or to provide for self-defense in the event of an armed attack, or to enable a country to discharge its international responsibilities.

9. Pending effective United Nations action to bring about a satisfactory system for the regulation of armaments and until the United States is satisfied that its national security as well as the security of other peace-loving states is assured, the implementation of the above-mentioned long-term policy must be qualified by factors of more immediate concern. Accordingly, in addition to transfers mentioned in paragraph 8 above, the United States may appropriately authorize the transfer of military supplies of U.S. origin to a foreign country when it is determined that such transfer is reasonable and necessary to preserve the independence and territorial integrity of a nation whose independence and territorial integrity are important to the security of the United States.

10. Unsettled world conditions and unstable conditions within certain countries, which countries may justifiably wish and need certain types of military supplies, make it impracticable to determine at this time, with any degree of specification, what types of supplies should be permitted to be transferred to what countries. Such determination must depend on the facts in each case, such as need and proposed use.

11. As it is believed that the implementation of a policy of control over transfers of military supplies can more readily and effectively be accomplished on an ad hoc basis, it is considered desirable that the policy determinations of SWNCC 202/2 be modified to conform to the Recommendations set forth herein.

12. It is considered that existing policies with respect to retention by foreign governments of lend-lease military supplies should be expressly reaffirmed (see paragraph 4f above).

13. Except for that relating to China, the programs mentioned in SC/R–184, as amended (see paragraph 3 above) are considered to be consistent with the policies suggested in paragraphs 8 and 9 above. However, it is desirable to re-define the scope of two of these programs, having in mind that SC/R–184, as amended, related to surplus equipment and that the passage of time has brought about changes in the nature of certain of the programs. For example,

a. SC/R–184 authorized the “transfer en bloc of military equipment left in England”. That transfer has been made. However, under the terms of agreement with the British relating to U.S. Army and Navy surplus property, retransfers of that equipment to third governments cannot be made without the consent of the United States. SC/R–184 does not authorize such retransfers, nor does it authorize retransfers of lend-lease military equipment held by the British.

Requests are from time to time received from the British for authority to make retransfers to third governments of equipment in their lend-lease military inventory as well as equipment transferred pursuant to the surplus property agreement. The matter of retransfers of equipment from their lend-lease inventory to British Commonwealth Forces in Japan was discussed at the 18th and 19th meetings of the Policy Committee on Arms and Armaments. The Committee “approved in principle” retransfers of this type, such retransfers being subject to the following qualifications:

1. “The articles shall remain subject to recapture by the United States Government. But this recapture may be waived with respect to any item transferred from the British lend-lease military inventory to the British Commonwealth occupation forces in Japan, provided payment for such items is made to the United States and provided also that such waiver is cleared with the War and Navy Departments.

2. “The British Army Staff will give subsequent notification to the Department of State of the types and quantities of articles retransferred.

3. “The matter will be subject to review at the time when the British Commonwealth forces withdraw from occupation duty in Japan.”

As the British are permitted to retransfer lend-lease military equipment to British Commonwealth forces in Japan, it would appear that they should also be authorized to transfer to those forces military equipment previously sold to the British pursuant to the agreement relating to U.S. Army and Navy surplus property.

b. SC/R–184 approved “the program for equipping the French Army to a reasonable extent”. The United States furnished military supplies to French forces from time to time during the war. The last approved extensive program was that authorized by President Roosevelt in March 1945 which involved the equipment of eight additional French divisions. This program was only partially completed by V–E Day, and it can no longer be considered a “program” in the sense originally authorized. Subsequent to V–E Day, an understanding was reached with the French with respect to the sale of military equipment, whereby the French would purchase from the Foreign Liquidation Commissioner such military equipment in the European theater as should be mutually agreed upon and as should be declared surplus for that purpose. No definite program of deliveries has been developed, but it is considered that the transfer of military supplies by the Foreign Liquidation Commissioner would fall within the authorization of SC/R–184. However, no such transfers should be made which appear to relate to Indochina, as it is not consistent with U.S. policy to support with military supplies French military activities in relation to that area.

It is considered that SC/R–184 should be modified to reflect the foregoing points and also to conform to the Recommendations set forth herein.

14. As the views expressed in paragraphs 6 to 13 above have not been formally cleared with the War and Navy Departments, and as some machinery should be agreed upon to facilitate ad hoc decisions on proposed transfers, it is considered desirable that a statement be prepared for adoption by SWNCC for the purpose of formalizing U.S. policy among the three departments concerned and for the purpose of establishing an appropriate mechanism for action on applications for transfers.

15. The term “military supplies of U.S. origin” as used herein is intended to mean all articles which may be defined from time to time by or pursuant to Presidential Proclamation as arms, ammunition and implements of war, except as otherwise provided by the Policy Committee on Arms and Armaments, acting in accordance with established procedures.

4. This document, as revised in accordance with decisions taken at the 206th Meeting of the Secretary of State’s Staff Committee (see supra), served as the basis for SWNCC 202/4 submitted by the Department of State to the State-War-Navy Coordinating Committee on January 8, 1947. Although different in format, that document closely resembles the present paper in both phraseology and substance; large sections are identical. (SWNCC Files)

   The decision to revise United States policy with respect to providing military assistance to foreign governments was taken in connection with U.S. concern regarding the independence and territorial integrity of Greece, Turkey, and Iran; see vol. vii, pp. 222–281, passim; pp. 856–923, passim; and pp. 507–547, passim; respectively.

5. Ante, p. 1141.
6. See footnote 59, p. 1141.
7. Ante, p. 1145.