Foreign Relations of the United States, 1947, General; The United Nations, Volume I

Department of State Disarmament Files¹

Minutes of the Thirty-Seventh Meeting of the Policy Committee on Arms and Armaments, Washington, March 7, 1947, 10:30 a.m.²

Washington, March 7, 1947, 10:30 a.m.

secret
PCA M–37

Present	General Crain,3 A–H, Deputy Chairman
	Messrs. Cummins,4 A–P, Executive Secretary
	Sohm,5 ESC, Secretary
	Dreier6, ARA
	Elliott,7 (for Blaisdell,8 SPA)
	Labouisse,9 EUR
	McAfee10 (for Ringwalt,11 FE)
	McGhee,12 UE
	Satterthwaite13 (for Timberlake,14 NEA)
	Consultants: Messrs. Abbott,15 IS
	Cardozo,16 FLC
	Margrave,17 MD
	Miss Chadwell, ESC

Approval of Minutes

1. Action: The minutes of February 28, 1947 (M–36)¹⁸ were approved.

Relative Priorities for Receipt of U.S. Military Supplies (D–13/4)¹⁹

2. Action: The Committee recommended priorities for the receipt of United States military supplies by the following countries, in the order listed: (a) Greece, (b) Italy, (c) Turkey, (d) Iran, (e) Canada, (f) Republic of the Philippines and (g) the other American Republics. The Committee further recommended that this action be subject to the following conditions:

a. This arrangement of priorities is a temporary one and it must be revised at frequent intervals.

b. Priorities alone will not furnish final action in reserving or delivering equipment to a foreign government. Decisions concerning such action will take into consideration the following:

(1) The quantity of important items available for transfer in relation to the overall demand for such items.

(2) The importance to each nation of particular types.

(3) The percentage of requirements to be assigned after consideration of (1) and (2) above.

The Deputy Chairman was directed to communicate this recommendation to the Acting Secretary of State. Further, the Deputy Chairman was directed to obtain information from the CCS concerning lend-lease military supplies in the hands of the British and available for retransfer to Greece.

3. Discussion: General Crain reviewed D–13/4 and pointed out that it is necessary to designate the relative priorities of certain countries for the receipt of U.S. military supplies since a limited quantity of such supplies are available from the armed services. He added that the priority designation would be presented to the SWNCC Subcommittee on Rearmament for coordination with Army and Navy representatives after the approval of the Acting Secretary had been obtained.²⁰

4. The following recommended priorities for the receipt of United States military equipment were registered:

• EUR

  1. Greece

  2. Italy (up to treaty limits)

  3. Turkey

  4. Canada

  5. none

  6. none

  7. none

• ARA

  1. Canada

  2. none

  3. none

  4. none

  5. none

  6. none

  7. Am. Republics

• NEA

  1. Greece

  2. Italy

  3. Iran

  4. Turkey

  5. Philippines

  6. none

  7. none

• FB

  1. Greece

  2. Philippines

  3. Italy

  4. Iran

  5. Turkey

  6. Canada

  7. Am. Republics

• UE

  1. Greece

  2. Iran

  3. Italy

  4. Turkey

  5. Canada

  6. Philippines

  7. Am. Republics

• SPA

  1. Greece

  2. Turkey

  3. Canada

  4. Philippines

  5. Italy

  6. Iran

  7. Am. Republics

5. Mr. Cardozo stated that surplus supplies are supposed to be sold for fair value²¹ and he questioned whether the priorities established by the Committee would override the obligation to obtain fair value or would obviate the acceptance of the highest bid for supplies. It was pointed out that the established priorities would apply to equipment properly available, and would not affect property under the custody of FLC when such equipment had been declared surplus for disposal, unless FLC receives specific instructions to the contrary.

6. Mr. Labouisse pointed out that the determined priorities could not be conclusive, but should be used only as a tentative guide subject to modification. He added that the Committee could not be expected to determine the details of supply of military equipment to the countries involved until it is known what supplies are desired and what items are available for transfer. It was believed that the priorities might be revised or weighed if it is determined that the available supplies can fulfill only the requests of the one or two countries receiving the highest priorities.

[Here follows discussion of other subjects.]

1. Lot 58D133, a consolidated lot file in the Department of State containing documentation on armaments, regulation of armaments, and disarmament, 1943–1960.
2. Regarding the establishment and functions of the Policy Committee on Arms and Armaments of the Department of State, see Foreign Relations, 1946, Vol. i, footnote 72, p. 840.
3. James K. Crain, Deputy Chairman of the Policy Committee on Arms and Armaments, Department of State.
4. Elmer T. Cummins, Executive Secretary of the Policy Committee on Arms and Armaments; Chief, Munitions Division, Department of State.
5. Earl D. Sohm, Secretary, Executive Secretariat, Department of State.
6. John C. Dreier, Chief of the Division of Special Inter-American Affairs.
7. John C. Elliott, Acting Assistant Chief, Division of International Security Affairs.
8. Donald C. Blaisdell, Associate Chief, Division of International Security Affairs.
9. Henry R. Labouisse, Jr., Special Assistant to the Director of the Office of European Affairs (Matthews).
10. William McAfee of the Division of Chinese Affairs.
11. Arthur R. Ringwalt, Chief of the Division of Chinese Affairs.
12. George G. McGhee, Special Assistant to the Under Secretary of State for Economic Affairs (Clayton).
13. Joseph C. Satterthwaite of the Office of Near Eastern and African Affairs.
14. Clare H. Timberlake, Chief of the Division of African Affairs.
15. Henry L. Abbott of the Division of International Security Affairs.
16. Michael Hart Cardozo, Director of the Legal Division, Office of Foreign Liquidation Commissioner.
17. Robert N. Margrave of the Munitions Division, Department of State.
18. Not printed.

19. Document PCA D–13/4, March 4, read as follows:

    “The members of the Committee are requested to be prepared at the meeting of Friday, March 7, 1947, to determine and recommend to the Acting Secretary of State the relative priorities of the following countries for receipt of United States military supplies:

    Greece	Republic of the Philippines
    Italy	American Republics
    Iran	Canada
    Turkey

    “The decision is required because of inability of the armed services to meet all approved and prospective programs.”

20. In a memorandum of March 12, Crain informed John H. Hilldring, Chairman of the Policy Committee on Arms and Armaments (also Assistant Secretary of State for Occupied Areas and Department of State Member and Chairman of the State–War–Navy Coordinating Committee), of the action taken at the present meeting. A typewritten marginal notation on that memorandum reads as follows: “General Hilldring took this up with Mr. Acheson [Dean Acheson, the Under Secretary of State] at the 9:30 a.m. conference, March 13, 1947, and it was approved by Mr. Acheson.” (811.24/6–2647)
21. Reference is to the Surplus Property Act of 1944, P.L. 457, 78th Cong., 2nd sess. (H.R. 5125), the legislative basis for the disposal program; see 58 Stat. (pt. 1) 765.