Department of Defense Files: Telegram
The Chief of Staff, United States Army (Collins) to the Commander in Chief, Far East (Ridgway)
DA 89795. From Chief of Staff.
1. US support of JNPR has been conditioned upon the avail of US funds and materiel and maximum self help by Japan. Past and current budgets do not provide adequate funds for all important Army programs and production of items for which funds are avail is far behind schedule. Therefore US support of JNPR cannot be provided as previously contemplated and an immediate re-examination of planning and implementing actions must be made to bring program in line with fund and production capabilities.
2. Approx $228,556,500 has been appropriated by Congress in FY 51 and FY 52 Army appropriations for the JNPR program. No funds avail in FY 52 MDAP appropriation. JNPR program has been deleted from both Mil Sec Program and Army FY 53 budgets. Effort being made to restore program in some FY 53 budget. In the meantime you must plan for next yr for development of the JNPR with funds now available.
3. Estimate that approx $135,000,000 has been obligated for materiel furnished or scheduled for shipment in near future from Continental US sources for special FECOM reserve in accordance with your requests (costs do not include approx $22,000,000 for general purpose vehicles and tank mounted bulldozers which are not immediately avail). An unknown amount has also been furnished direct from FECOM stocks. An allocation of not to exceed $28,850,000 will be made shortly by radio for mortar production in Japan for JNPR re CINCFE msg C 55537, 22 Oct.1 Therefore likely that unobligated balance is relatively small.
4. Therefore essential to re-examine planned organization and equipping of JNPR and accomplish necessary adjustments in programming for this force. After considering facts indicated this msg request submission alternate plan for development of JNPR to include:
- a.
- General description of composition and phasing of force which can be developed with US funds now available and Japanese funds likely to be made aval.
- b.
- Recommendations as to how remaining US funds are to be expended including recommendations concerning materiel previously requested from the Continental US for the 4 Division Force which has not yet been shipped.
5. Following factors should be considered in your analysis: Increased utilization of a portion of the dollar funds avail from US FY 51 and FY 52 appropriations for initial orders on Japanese industry for production of small arms and other armament (in addition to mortar program now being authorized); deletion or reduction of requirement for heavy expensive equipment, e.g., tank mounted dozers; procurement by Japan with Yen from Japanese Budget of general purpose vehicles and similar equipment originally intended to come from US sources; and substitution of more economical but acceptable substitute and non-standard types US equipment for items previously scheduled for issue (in last category are the following examples of items that are available here at a relatively small percentage of first cost plus charges for packing, handling and transportation expenses: 450 M–5 tanks; 2500 guns, 37mm, M–9 and M–10; 1118 carriage, motor, M18-items would be supplied less spare parts and in most cases major overhaul will be required. This would require Japan to make spare parts and to perform overhaul as is not being done for many types of US equipment in Big 5 and Big 9 operations).
6. If funds available in FY 53 only permit the equipping of 10 Divisions on an austere and perhaps ineffectual basis you may desire to consider other plans for size and equipment of JNPR in FY 53; e.g. Completely equipping a number of divisions less than 10 which can be supported with funds available; or completely equipping 4 Divisions and use of remaining funds for providing training equipment on an austere basis for not more than 6 additional divisions. These plans should not be made in expectation that JCS objective of 10 Japanese Divisions will be changed. Continuing efforts will be made to secure necessary funds. In interim, however, it is desirable to utilize available funds so that:
- a.
- If no additional funds are secured for JNPR, then best use will have been made of funds already available.
- b.
- If additional funds are secured for JNPR, then they can be utilized without any disadvantage having been incurred as a result of interim action taken as a result of this message.
5. If additional funds are secured for JNPR, then they can be utilized without any disadvantage having been incurred as a result of interim action taken as a result of this message.
7. To ensure that value of support furnished JNPR from US sources not paid for by Japanese does not exceed total funds appropriated fiscal accounting must be established. Consider that this can best be done by you with periodic reports being submitted to DA. Separate DA radio will discuss details of such continuing control. Pending this, request that following information be submitted soonest:
- a.
- Dollars expended in Japan for initiating Japanese production for JNPR or for other JNPR purposes, indicating programs and/or items for which funds expended.
- b.
- The dollar value of all items held in reserve for or loaned to the [Page 1443] JNPR from FECOM stocks, excluding special FECOM reserve shipments from ZI.
8. In determining costs following criteria should be followed:
- a.
- All materiel furnished by the US from any source (including items furnished from FEC stocks or procured locally with US funds since inception of Japanese police program) should be priced.
- b.
- Costs should be based on present MDAP pricing formula including appropriate packing, handling and transportation costs. (See Para 98D, supply supplement, 1 Nov).
- c.
- Cost of materiel held in reserves, including “heavy equipment,” should be included.
9. For planning purposes it can be assumed that materiel for any major expansion of JNPR beyond what will come from funds now available must come from following principal sources:
- a.
- World War II type equipment now being used by US forces in Korea, if and when that operation is completed and US forces are redeployed. Used equipment except for items in critical supply could be turned over to JNPR at MDAP prices to the extent that FY 54 funds (either Defense or MDAP) are made available.
- b.
- US equipment procured with funds we hope to secure in some US FY 54 appropriation when US production will have caught up with requirements for regular Army and MDAP-estimated to be during FY 54.
- c.
- Japanese production utilizing Japanese funds. US funds now available for JNPR and not yet obligated (or US funds which may be secured in FY 53 or FY 54) might be used to initiate production or to procure raw materials not available for yen.
10. Advise ETA alternate plan. Pending recommendation Para 4b above no changes will be made in scheduled shipments from Continental US for special FECOM Reserve.
11. This radio does not affect previous request for estimate of phased material requirements for overall balanced force of 10 Divisions which will be used for budget purposes (early arrival of this estimate will materially assist US in current budget actions—see Para 2 above).
- Not printed.↩