840.20/11–1749
Memorandum by the Assistant Director of the Mutual Defense Assistance Program (Bell)
Guidance Paper for Discussion of Future Mutual Defense Assistance Program (Fiscal Year 1951 and Subsequent Years)
The Mutual Defense Assistance Program for 1950 enacted by the 81st Congress was submitted and justified, insofar as Atlantic Pact countries were concerned, as an interim program of aid essential to establishing a necessary basis of defensive strength upon which an ultimate structure of adequate defense could, be built. It was indicated to the Congress, and the Congress in its action upon the bill emphasized, that future programs of assistance to North Atlantic Pact countries would be considered on their merits but would have to be related to a definitive plan of defense areas through the Atlantic Pact mechanism.
A basic strategic concept is in process of development by the Military Committee of the North Atlantic Treaty Organization and is expected to be approved by the Defense Committee at its session in [Page 408] Paris on December 1.1 This concept is believed to provide a sufficient basis for the President to expend the $900,000,000 of funds authorized under the Mutual Defense Assistance Act, the release of which is conditioned upon the President approving the recommendations for an integrated defense of the North Atlantic area. This concept, however, merely provides the framework for more detailed military planning which should ultimately produce, in terms of forces and equipment, estimates of the requirements necessary to the establishment and maintenance of an adequate defensive position in the North Atlantic area. The problem to be solved subsequent to this definition of goals, is the time within which they must be met and the capacity of the nations concerned to meet those goals within that time. The United States expects to press for action within the North Atlantic Defense Financial and Economic Committee which will result in a definition of budgetary limitations within which other members of the Treaty Organization can plan for the necessary production and supply action to meet military requirements. The accomplishment of all of these objectives and the answers to all of these questions are essential to an intelligent basis for a determination of the contribution which the United States should make to the common defensive strength through the medium of military assistance.2
It is obvious that these problems will take a considerable length of time for solution and that the answers reached will not necessarily be conclusive in view of the fact that defensive strength requirements and national abilities are subject to variations in accordance with the variables of the general military political and economic situation. It is clear, however, that the effect of the 1950 military assistance program and of the combined efforts of the other members of the Treaty will not produce an adequate defensive strength and that assistance on a dollar scale comparable to the 1950 program can be provided during 1951 without any risk whatsoever of exceeding the requirements of defense. On this basis, it has been assumed, for planning purposes, that a program of equal dollar cost should be submitted during the next year. It is not possible at this time to be certain as to the extent to which the funds appropriated for the 1950 program can actually be expended before the end of the current fiscal year since delay in enactment of the legislation, plus delay in obtaining necessary bilateral arrangements and delay in obtaining the basic defense plan, have all served to postpone the date upon which active implementation could be commenced.
[Page 409]With respect to the problem of military assistance for Greece and Turkey (Title II countries), we are currently faced with the necessity of a revaluation of our objectives in Greece in light of the successful campaigns against the guerrillas, and in the light of developments in Yugoslavia. A thorough re-examination in this field will require some weeks to be completed and dependent upon the conclusions of that study, it is possible that there may be a continuation on the present scale or even a sharp increase.
With respect to Turkey, it is unlikely that there will be any increase in the Turkish program and it is presently anticipated that a continuance of this program for at least two years will be necessary to accomplish the objectives sought.
The situation with respect to Title III countries, Iran, Korea and the Philippines, is not at the moment clear, since the process of programming the 1950 funds and determining future needs is just underway. It is unlikely, however, that any increase in these programs during future years would be necessary and indeed their steady diminution and eventual abolition is to be hoped for.
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There are certain contingencies which must not be overlooked in considering the future of military assistance programs. At some date in the future and perhaps in the near future, it will be necessary to program aid for Austria which, in initial requirements, is estimated to call for equipment costing approximately $112,000,000. Similarly, aid to the new state of Indonesia will probably be required, although it is not believed that this assistance will total more than ten to fifteen million dollars during the first year.
It is also possible that it may be desirable, in the interests of the United States, to provide aid to Yugoslavia. In this connection, the National Security Council is currently reviewing this problem.
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- For the text of the report approved by the Defense Committee on December 1, see vol. iv, p. 352.↩
- For the statement by Secretary Acheson concerning the status of the Mutual Defense Assistance Program, December 21, 1949, see the Department of State Bulletin, January 2, 1950, pp. 16–17. The initial phase of the program is also described in the First Semiannual Report on the Mutual Defense Assistance Program (House Document No. 613, 81st Cong., 2nd Sess.), transmitted to Congress by the President on June 1, 1950.↩