740.5/10–1051: Telegram

The United States Delegation on the Temporary Council Committee to the Secretary of State 1

confidential
priority

Repsec 27. From USDel TCC. Fol is text of proposed course of action paper which has been agreed by chairman and two vice-chairmen for submittal to TCC Oct 11.2

Section I—Introduction

The Council has stated as the required ‘immediate next step’ ‘An analysis of the issues involved in reconciling on the one hand the requirements of external security, in particular of fulfilling a militarily acceptable NATO plan for the defense of Western Europe with, on the other hand, the realistic political-economic capabilities of member countries.’

The TCC is directed to carry out such an analysis and to submit to the Council its findings including possible courses of action. The committee’s analysis is to be completed and its findings reported to the Council by Dec 1, 1951.

To fulfill this task, the comite’s plan of work must provide:

(1)
Assessment of the dimensions of the problem both on the requirements and the capabilities side, which shld be completed in about one month, and
(2)
Exploration of possible courses of action and preparation of the report.

In all aspects of its work, the TCC will assume a German contribution to western defense. It will also assume that the contribution will be made through the European defense community, except for such contributions as may be made to support forces of NATO countries in Germany. The TCC will secure info it needs on Ger requirements and capabilities from the Paris conf and, where necessary, from other appropriate sources, it being understood that the Paris conf will be closely associated with this work.

Section II—Assessment of the Dimensions of the Problem

This phase is composed of the elements set forth briefly below. Later sections of this paper indicate the proposed method of handling each of the elements. The starting point, namely, the authoritative statement of force requirements from a military viewpoint will be available before the end of this week. In view of the very limited time available, the various other steps in this phase must be carried on concurrently. In summary, the elements of the first phase are as follows:

military force requirements

A statement from the Standing Group giving their latest estimate, framed in the light of recommendations by SACEUR, of the force requirements for the defense of NATO area in July 1954, with a time-phased build-up, and with their tentatively proposed national allocations of forces to meet those requirements. These must be supplemented by infrastructure requirements.

Thereafter, the proposed line of work involves (1) on the military side an inventory of the current position and the screening and costing of military requirements, and (2) on the political-economic side an inventory of current efforts and an appraisal of capabilities and limitations.

(a) Military stock taking.

This element involves an analysis of the actual current position with respect to forces and their efficiency, provision of material, and military construction, including not only a record of the present position but also of the results that will follow over the coming months from actions already taken.

(b) Screening and costing of military requirements.

This element involves an examination of organization and equipment of basic national military units, their training and operating requirements, and the making of recommendations on economy measures to obtain effective mil force requirements at minimum cost. For this purpose, it is proposed to create a screening and costing comite with the functions set forth below.

(c) Econ and financial stocktaking.

This element involves an inventory of current levels of defense expenditure and production of matériel, including contracts placed for future delivery, the rate of completion of contracts, and the rate [Page 312] of payments. The position in virtually all respects as it will be at June 30, 1952, and in some respects at later dates, is largely fixed by the actions already taken or in process.

(d) Analysis of capabilities.

This requires an examination of present and planned levels of defense contributions, and the economic and political problems involved in their implementation and possible expansion to meet the military force requirements estimated by the standing group this to be done for each member country. The analysis must include problems involved in rapidly expanding the levels of munitions production in Europe, and problems involved in raising and training mil manpower in the indicated quantities and by the indicated dates, including possible means of resolving these problems. This work will also include an examination of the possibilities of expanding the capabilities through cooperative measures.

Section III—Courses of Action and Preparation of Report

The ultimate goal is a mil effective and polit and econ feasible program, including the allocation of contributions in men, production, and finances, among the member countries (and Germany). Any such program shld be balanced and time-phased as regards the period up to mid-1954.

The exact method of work appropriate to the second phase can not be determined in advance, since it will be largely controlled by the character and dimensions of the problem as revealed in the first phase.

It is therefore proposed that a more definitive plan of action for this phase be developed by the exec bureau and be presented to the TCC at an appropriate later date.

Section IV—Further Statement on Proposed Action Outlined in Section II

a. military and economic stock-taking

In order to undertake a realistic analysis of the current position, the executive bureau will request info from member govts and NATO agencies which will include the size of the forces available to NATO on 31 December 1951 and their state of training and equipment; forecasts of the equipment which will become available in 1952 from European production as a result of firm orders placed, of end-item deliveries to European members from North America against funds already programmed, and of the additional trained manpower which present arrangements will produce by the end of 1952.

b. screening and costing military requirements

It is proposed that the exec bureau will form a screening and costing comite, which will be an agency of and report to TCC through the exec bureau.

The screening and costing comite wld be empowered to call upon all North Atlantic treaty org agencies, commands and countries to furnish such info as may be necessary in the conduct of its work, [Page 313] provided its consideration of the info is within its terms of reference as determined by the exec bureau.

The SCC wld make recommendations on economy measures to reduce costs of creating and maintaining recommended mil requirements for an adequate defense of the North Atlantic area. Its work wld be based on revised medium term defense plan force requirements as prepared by the standing group (and subsequent modifications thereof), and wld estimate the minimum cost after taking all possible economies into consideration. The SCC wld review the possibility of affecting all practical economies as for example: equipment both as to resales and unit costs, administrative and supporting units and installations, infrastructure, etc.

c. analysis of capabilities

1. During the initial stage of the work on politico-economic capabilities, it will be necessary to secure an understanding of the character and the seriousness of the politico-economic problems involved in each of the countries in accomplishing present programs and in undertaking the kind and size (in general terms) of military program as estimated by the standing group.

There will also be required an exploration of the steps which might be taken by countries individually or in cooperation to eliminate or reduce the magnitude of these problems. In this latter connection particular attention shld be directed to increases in over-all productivity and output by positive measures.

This phase looks forward to a period when, in the light of the screened requirements resulting from the work of the SCC, TCC will endeavor to develop judgments with respect to overall and country levels of effort and aid.

2. To assist in securing an understanding of the difficulties to be encountered in each country, each member country will be requested to submit within a short period (e.g. two weeks) a statement describing in qualitative terms, supported by approximate data to the extent useful, the problems involved in present and proposed defense programs. These statements shld address themselves to specific difficulties which may be incurred in key areas such as the balance of payments, production, manpower, raw materials. The statements shld also cover the nature of the limitations on additions to present defense efforts and suggestions of a specific nature for overcoming such limitations.

For these purposes countries can not await completion of the detailed costing of the program as estimated by the standing group since only rough general magnitudes will be necessary for the economic analysis.

These statements will provide a basis for and will be followed immediately by full and frank country-by-country discussions among members of the exec bureau of the TCC, including for this purpose a representative of the country concerned, designed to bring out more fully and clearly the politico-economic capabilities and difficulties in each country.

3. To consider positive measures to assist an expansion of total production, and thus permit increased defense efforts without serious [Page 314] impairment of political and economic stability, it is proposed to recruit key personnel from the OEEC and FEB secretariat.

4. The analysis shld include an examination of the realistic possibilities of expanding the levels of munitions production in Europe, the limiting factors on such expansion, and possible means of overcoming them.

5. In commenting through the mil reps comite on the allocation of forces by country as estimated by the standing group, countries will describe any difficulties from a military point of view in providing the forces required of them. These replies shld be sent simultaneously to the SGG [ SG?] and the TCC. The TCC will seek advice from the appropriate NATO military authorities on the importance of these obstacles and on measures which might be taken to overcome them.”

  1. Repeated to all NATO capitals.
  2. As noted in telegram Repsec 29 from Paris, October 11, supra, this paper was approved by the TCC on October 11 with only minor drafting changes.