751G.5 MAP/6–150
Memorandum by the Deputy Director of the Mutual Defense Assistance Program (Ohly)
Memorandum for Major General Lyman L. Lemnitzer1
Department of Defense
Mr. Edward T. Dickinson2
Economic Cooperation Administration
Subject: Implementation of and Planning for Section 303 Programs
Reference is made to previous discussions between officials of the Departments of State and Defense and within the FMACC3 regarding the provision of military assistance under Section 303 of the Mutual Defense Assistance Act to certain Southeast Asian nations.
Of the $75,000,000 appropriated to the President under Section 303, the President has approved the reservation of $15,000,000 for military aid to Indochina, $10,000,000 for military aid to Thailand, and $5,000,000 for military aid to Indonesia. Of these amounts, $10,000,000 has been allocated for Indochina and $3,000,000 for Indonesia. In addition, $6½ million has been allocated for certain installations in Japan, and $3½ million for aid to Burma. Thus, $40,000,000 has so [Page 99] far been earmarked or allocated for military aid purposes. In addition to the foregoing, $750,000 has been allocated by the President for an economic program in Indochina.
It is understood that our agencies are in agreement at this time that the balance of funds not earmarked or allocated ($34,250,000) should be apportioned for planning purposes and subject, of course, to Presidential approval as follows: $13,750,000 is to be utilized for nonmilitary programs or held in reserve. In FMACC planning for additional or estimated programs of military aid in this area, the balance of $20,500,000 should be contemplated as available therefor. In addition to this sum, we are, as you know, seeking additional funds in the amount of $75,000,000 in the proposed 1951 Mutual Defense Assistance Program for Section 303 purposes. All agencies involved are agreed that those funds which are allocated, or proposed to be allocated for military aid should be administered through the FMACC in the same manner as other military aid programs under the Mutual Defense Assistance Act of 1949. As you are aware, the President, in making the allocations referred to, has signified that such was his desire.
It is generally agreed that in order effectively to implement the programs so far developed and effectively to plan as to further military assistance in this area, it is necessary and desirable that a survey mission be sent to Southeast Asia as soon as possible. It is accordingly proposed that such a mission, under the auspices of the FMACC, be organized and, subject to FMACC instructions, depart if possible not later than June 15, 1950. There will be transmitted to you separately, a memorandum setting forth the terms of reference which we suggest should be adopted by the FMACC and incorporated as a directive to the survey mission. The views of the Department of Defense and the ECA thereon are solicited.
It is also apparent from the discussions which have taken place to date that there will be a need for United States military personnel to be attached to the United States Missions in Indochina, Thailand, Indonesia and Burma, to assist in the implementation of the military aid programs for those countries. While the exact size and composition of personnel requirement and the precise organizational arrangements involved cannot be definitively determined at this moment, it is believed that there is a sufficient basis of knowledge to permit the initiation of action in the Department of Defense looking toward the procurement and making available of at least key personnel for these purposes. It is urged that such action be taken.
In the period intervening the establishment of permanent personnel and organizational arrangements, it will undoubtedly be necessary to make interim arrangements for such personnel as are necessary for supply and training action in these countries. It would be appreciated if the Department of Defense would undertake to develop proposals [Page 100] for handling this situation as soon as possible. Due to the complex political factors involved therein, such proposals should receive the concurrence of this Department prior to their implementation.
- Director of the Office of Military Assistance, Department of Defense.↩
- Edward T. Dickinson, Director, Program Coordination Division, Economic Cooperation Administration.↩
- The Foreign Military Assistance Coordinating Committee, consisting of representatives of the Departments of State and Defense and the Economic Cooperation Administration, was charged with operational interdepartmental coordination of the military assistance program. Messrs. Ohly, Dickinson, and General Lemnitzer represented their respective agencies on FMACC. Additional information on the Committee and military assistance in general is scheduled for publication in volume i .↩