740.5/12–1051: Telegram
The United States Delegation on the Temporary Council Committee to the Acting Secretary of State 1
priority
Repto 98. Usdel Tec no. 70. Subject is EB draft TCC report.
1. Executive Bureau, TCC agreed last night and has today passed to NATO countries EB draft of proposed TCC report. Full TCC meets Friday 14 Dec for consideration of draft. Meeting expected take several days to complete action.
2. Basic concept of proposed report is that NAT activity shld be concentrated on “most rapid practical build-up of balanced effective combat forces.” Report endorses for consideration NATO and govts the major recommendations of screening and costing staff (SCS) report including principles and standards of readiness and proposed annual plans for forces build-up on basis indicated para four below. TCC draft report includes sections on: process of reconciliation of mil requirements and politico-econ capabilities; discussion residual financial and equipment gaps; annual programs for NATO build-up; supply, production and maintenance of NATO build-up; econ conditions for fulfillment TCC plan of action; mil conditions for fulfillment of plan; organizational problems of NATO; and country annexes giving proposed TCC conclusions on politico-econ aspects each country’s defense effort and suggestions, where appropriate, for increased effort.
3. SCS report in full detail sent countries Dec 7.
4. Draft TCC report, in effect, provides recommended pattern and composition of defense build-up effort as guide to govts in form of clear targets and plan of action for 1952, targets but less precise program for 1953 and targets and indication of program for 1954 and beyond. Recommends there be included in 1952 plan those initial actions on long lead time matters which must be initiated in 1952 to carry out the more flexible planning targets suggested for 1953 and in some cases 1954. Build-up shows possible achieve, by end of 1952, mil forces which, though not adequate will have major capabilities both for combat operations and for deterrent effect. SCS targets for 1954 wld not fully satisfy MC 26/1 estimated requirements although not very far short in orders of magnitude. There remain financial and equipment gaps especially in 1954 but also significant in 1953 even in raising SCS proposed forces, but EB concludes these not of such size to justify reduction in SCS proposed build-up for planning purposes. [Page 374] Important fraction equipment gap results from assumed German contribution and necessarily low German mil production starting from scratch; report notes possibility extra US end item assistance this purpose, as indicated in submission. EB proposes adoption SCS 1952 proposals as firm, 1953 as provisional and 1954 as planning guide lines. Proposes overall review by appropriate permanent NATO agencies next summer to adjust programs for 1953 and 1954 and beyond.
5. Draft report indicates suggested plans for action can be met only if countries give serious consideration to and carry out to extent possible conditions for fulfillment. These include, arising from SCS recommendations, the following:
- a.
- Institution effective priority system for assignment of equipment.
- b.
- Establishment approved minimum lists of acceptable types of equipment.
- c.
- Development of adequate plan and program for logistical support.
- d.
- Improvement of command arrangements.
- e.
- Promotion greater standardization.
- f.
- A number of conditions pertaining to creating and maintaining combat readiness, such as larger regular establishments, training of specialists, etc.
6. Report also discusses econ conditions, including general econ expansion, basic materials and manpower, coal, steel, electricity, maintenance internal stability (including restraining demand, reducing rises in costs and prices), dollar balance of payments, OSP, intra-European payments.
7. 1952–54 dollar balance of payments deficit forecast as $7 billion not counting US aid. On basis econ aid consistent US submission proposals, large-scale and promptly implemented OSP, and assumption substantial infrastructure contributions and other direct US mil expenditures, report indicates deficits shld be manageable.
8. Annex on US program recommends stepped up timing of enditem deliveries, administration of programs to maximize effectiveness in helping finance European essential dollar imports. Action recommended to promote most useful internatl distribution scarce materials, avoid unduly high price levels, and assistance in making available increased quantities certain materials, particularly steel, and in facilitating imports to US. Does not comment on question of increase aid program.
- Repeated to all NATO capitals.↩