Foreign Relations of the United States, 1952–1954, General: Economic and Political Matters, Volume I, Part 1

S/S–NSC files, lot 63 D 351, NSC 5434

Report to the National Security Council by the NSC Planning Board¹

secret
NSC 5434/1

[Washington,] October 18, 1954.

Procedures for Periodic NSC Review of Military Assistance Program

objectives

1. The recommended procedures outlined below are designed to provide a periodic review for the National Security Council of the broad aspects of the military assistance programs, including major policy considerations relating to force levels, allocations of end items and priorities therefor, and production capabilities included in all uncompleted military assistance programs (totalling at June 30, 1954, approximately $7.6 billion, about $5 billion of which has been obligated), in the light of U.S. security objectives, strategic concepts and other relevant considerations, and with the objective of obtaining the best possible balance in terms of U.S. security.

recommendations

Modification of Mutual Security Semi-Annual Status Report

2. In order to provide the necessary basis for this periodic NSC review, that portion of the semi-annual NSC status report on the Mutual Security Program which concerns military assistance and supporting programs directly related thereto should be modified as follows:

a. Content. This portion of the semi-annual status report should show the status of military assistance and supporting programs, by countries and areas, in relation to existing governmental policies, commitments, and program objectives, including both actions taken and future planning to implement approved programs. World-wide summaries should be included where appropriate. Coverage should include, but not be limited to, the following:

(1) presently planned force goals for recipient countries;

(2) priorities in allocation of end items among recipient countries, based upon the over-all statement of priorities established under par. 4;

(3) unexpended MDAP funds;

(4) relation of current and anticipated delivery of end items to program objectives;

(5) important limitations upon deliveries of end items imposed by production policies or capabilities;

(6) adequacy of capabilities abroad for production of military end items, and equipment reserves abroad.

b. Distribution. Those parts of the report relating to the evaluation of the combat effectiveness of the forces of recipient nations should be available on a limited distribution basis only to Council and Planning Board members.

c. Format. The report should be presented in as concise a form as will serve the dual objectives of providing a basis for the semiannual review of military assistance programs and fulfilling the needs of the President and Council for reports on the status of national security programs. To the extent feasible, information should be presented in tabular or chart form.

d. Responsibility for Preparation. With such collaboration as may be desirable, (1) the Department of Defense should prepare that part of the semi-annual status report relating to the military assistance programs which it administers, and (2) FOA should prepare the remaining part, covering the supporting programs directly related to military assistance.

e. Timing. This report should be submitted as soon as practicable, and not later than 60 days, after the end of each calendar half year, and promptly circulated to the Council and the Planning Board.

Preparation of Recommendations for the Council

3.² The NSC Planning Board should review the semi-annual status report referred to above, in order to prepare for Council consideration major policy recommendations with respect to military assistance and supporting programs in relation to all other pertinent national security programs. Specifically, the Planning Board should take into consideration priorities, as between international and national programs, for the allocation of end items and the development of the mobilization base and levels of production at home and abroad.

Consideration of Priorities

4. The statement of priorities relating to pre-D-day allocation of military end items (stocks and new production) to meet U.S. and foreign military requirements, as established by the Secretary of Defense, should be submitted by him to the National Security Council for consideration and recommendation to the President.

1. This report was approved by the NSC at its 217th meeting on Oct. 14, 1954, the memorandum of discussion of which is printed supra. A covering memorandum, by NSC Executive Secretary James S. Lay, Jr. dated Oct. 18, notes, inter alia, that on Oct. 16 President Eisenhower had approved the Council’s action and directed the implementation of NSC 5434/1.
2. Paragraph 3 of the source text is revised from the original draft of NSC 5434/1 as the result of a memorandum of correction dated Oct. 19, 1954, circulated by Lay to all recipients of NSC 5434/1.