790.5 MAP/4–1250
Memorandum by Mr. Samuel T. Parelman 1 to the Deputy Assistant Secretary of State for Far Eastern Affairs (Merchant)
Subject: Status of Section 303 Proposals
1. Indochina Military Assistance (Approved by the President 3–10–50).2
Pursuant to advice from the Bureau of the Budget that they would consider making an allocation on the basis of any emergency items which were required immediately for Indochina, a letter was transmitted today by S/MDA to the Bureau requesting the allocation of $15 million.3 Of this total, $10 million will cover the C–54’s, the 37 mm. [Page 77] ammunition and certain Navy items which have been requested on an emergency basis. The balance of $5 million is for certain ground force items which are going to be necessary.
2. Indonesia Military Assistance (Approved by the President 1–9–50).4
The Department of Defense transmitted to S/MDA today its recommended program for military assistance which totals slightly less than $5 million. A request for an allocation of $5 million is being included along with the aforementioned Indochina amount in the letter to the Bureau of the Budget. At the request of the Department of Defense, a telegram was transmitted to Djakarta requesting further detailed information with respect to certain items of equipment which was necessary before actual supply assignments could be completed.5
3. Indochina Economic Assistance.
The Memorandum to the President was made available to the Secretary yesterday to obtain the Secretary’s approval for the proposed initial program of economic assistance to Indochina in the amount of $5 million which is to be administered by ECA.6 Inasmuch as the Department of Defense has not objected to this project but has expressed doubts that the 303 fund should be so expended, the presentation of this project to the President will serve to make clear the President’s views as to the use of these funds for other than military purposes.
4. Korea Supplemental Military Assistance.
The proposal for a program under Section 303 of $9.8 million to supplement the regular Military Assistance Program for Korea was discussed with Defense at the top level with the result that Defense has advised us (April 5, 1950) that “there appears to be no military necessity for an increase in the fiscal year 1950 MDA Program for Korea at this time.”7 They wish to be advised if State anticipates, for political reasons, recommending the revision of NSC 8/28 to provide for increased Korean military strength. We are awaiting the return of Ambassador Muccio9 before proceeding further with the proposal.
[Page 78]5. Thailand Military Assistance (Approved by the President 3–10–50).10
Revised proposals for assistance received from Ambassador Stanton are being reviewed by Defense preparatory to their submitting a program to FMACC. The Embassy has been cautioned about premature release by Thai Government of information on the program.
6. Burma River Patrol Project.
Pursuant to advice received from the military as to the availability of shallow draft vessels, the mission has been queried by the Department as to the feasibility of using the available vessels. The mission has informed us that there are some technical problems and they will advise us further.
7. Burma Country Program (Other than River Patrol Project).
This has been discussed informally with Defense and in view of their attitude with respect to projects other than military, it is being held in abeyance pending a decision by the Secretary and the President relative to the pilot economic project being submitted for Indochina.
8. Expanded Food and Anti-Malaria Program for Southeast and South Asia.
This program, which was transmitted to the Deputy Under Secretary’s office on March 29, is also being held in abeyance pending the action taken on the pilot project for Indochina. This program, which totals $17.5 million, includes $8.3 million for the rice program and $9.2 million for the anti-malaria program. There are some questions as to the size of the program and its applicability as an emergency program to certain of the countries. It was intended that these programs would be undertaken in Thailand, the Indochinese states, Indonesia, Afghanistan, India, Pakistan and for the rice program alone, the Philippines.
9. Expanded Propaganda Program for Southeast and South Asia.
The various projects proposed under this heading have been undergoing a process of refinement in the P area based on the latest developments in the Far East and the availability of funds under the regular program.
10. Other.
S/MDA was asked by G to take action to have appropriate language inserted in the amendments to the MDA Act in order to make the balance of the present Section 303 funds available for obligation in the fiscal year 1951 and to plan to seek new obligational authority in an amount sufficient to build the fund up to $75 million for 1951. It [Page 79] is planned that this matter will be discussed with the Secretary and the President before the suggested legislation is introduced.
FE and L are collaborating in the development of appropriate intergovernmental agreements or notes in connection with assistance provided to other countries under Section 303.
Recommendations on programs of assistance to the countries of Southeast Asia have been received from the Griffin Mission with respect to Indochina, Thailand, Malaya and Burma. The Indochina proposals are included in the material mentioned under Item 3 above. The Burma proposals are similar to the material included in the item under 7 above, and the Thailand and Malaya proposals are now under study in the Department.
- Executive officer, Bureau of Far Eastern Affairs.↩
- See footnote 2, p. 41.↩
- Not printed.↩
- See footnote 2, p. 964.↩
- None of the communications mentioned in this paragraph is printed.↩
- For the memorandum to the President as transmitted by Secretary Acheson, April 17, see p. 785.↩
- For documentation on the exchange under reference and other aspects of military assistance to the Republic of Korea, see Foreign Relations, 1949, vol. vii, Part 2, pp. 940 ff.↩
- For NSC 8/2, “The Position of the United States with Respect to Korea,” a report approved by President Truman on March 23, 1949, see ibid., p. 969.↩
- John J. Muccio, Ambassador to Korea.↩
- See footnote 2, p. 41.↩