Foreign Relations of the United States, 1951, National Security Affairs; Foreign Economic Policy, Volume I

S/S–NSC (Miscellaneous) Files, Lot 66 D 95

Record of Actions by the National Security Council at its 105th Meeting, October 17, 1951

October 17, 1951

top secret

Note: The President presided at this Council meeting

Action Number	Subject
574.	The Situation in the Far East Noted an oral briefing by Colonel C. E. Hoy, USA, Joint Chiefs of Staff, on the military situation in Korea.
575.	United States Programs for National Security (NSC 114/2 and Annexes to NSC 114/2;1 Memos for NSC from Acting Executive Secretary, same subject, dated October 12 and 15;2 Memo for NSC from Executive Secretary, same subject, dated October 16;3 Memo for NSC from Executive Secretary, subject: “Economic Implications of the Security Program”, dated October 16, 1951)4 a. Agreed to recommend to the President that he authorize the responsible departments and agencies to proceed with the preliminary budget submissions for FY 1953 on the basis of the programs described in Part II of NSC 114/2, subject to: (1) The understanding that the Department of Defense will prepare preliminary budget submissions for the Military Program within the estimate of 45 billion dollars set forth in paragraph 25 thereof, pending further consideration of the 50 billion dollar requirement for additional reserve stocks. (2) Revision of the Program for Foreign Economic and Military Assistance in the light of the results of the current work of the Special Temporary Commission of the North Atlantic Council. (3) Revision of the Civil Defense Program in order to provide as a matter of urgency a more adequate degree of protection for the United States than is presently programmed in this field. (4) Review of the Internal Security Program with particular reference to the sections thereof relating to the security of industrial plants. (5) Further study of the economic, social and political implications of the programs as a whole. b. Noted the statement by the Secretary of Defense of his understanding that the action in a(1) above provided a mere point of departure for budget planning and that the resulting budget figure might be higher or lower. c. Directed the Senior NSC Staff to submit for Council consideration at the earliest practicable date a reappraisal of the policies and programs set forth in the NSC 68 and 114 (Cont’d) Series, including a revision of Part I of NSC 114/2 and in the light of: (1) Further analysis of Soviet atomic capabilities as indicated by the recent explosion of another atomic bomb in the USSR. (2) The current evaluation of the net capability of the USSR to injure the continental United States. Note: The action in a above subsequently submitted to the President for consideration. Mr. Mclnerney for the Attorney General, the Secretary of Commerce, the Acting Economic Cooperation Administrator, the Federal Civil Defense Administrator, the Director, Bureau of Budget and the Chairman, Council of Economic Advisers participated in the above actions with the Council, the Secretary of the Treasury and the Director of Defense Mobilization.
576.	NSC Status of Projects Noted the status of NSC projects as of October 15, 1951.

1. For partial text of NSC 114/2, October 12, see p. 182. For a list of the annexes, see p. 183. For Annex No. 2, see p. 412. For Annex No. 4, see p. 208. For Annex No. 5, see p. 942.
2. For the memorandum of October 12, see p. 192. The memorandum of October 15, circulating “Preliminary Estimates of the Impact of the Military Program on Production Resources” and attached charts, prepared by the Department of Defense, are not printed. (S/S–NSC Files, Lot 63 D 351, NSC 114 Series)
3. Ante, p. 229.
4. See footnote 1, p. 230.