Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

Eisenhower Library, papers as President, Whitman file, NSC records

Memorandum of Discussion at the 148th Meeting of the National Security Council on Thursday, June 4, 1953¹

top secret
eyes only

June 4, 1953

The following were present at the 148th meeting of the Council: The President of the United States, presiding; the Vice President of the United States; the Secretary of State; the Deputy Secretary of Defense; the Director for Mutual Security. Also present were the Secretary of the Treasury; the Attorney General (for Items 2 and 3); the Director of Defense Mobilization; the Director, Bureau of the Budget; the Acting Chairman, Atomic Energy Commission (for Item 2); the Acting Secretary of Commerce (for Items 4 and 5); the Secretary of the Army (for Item 2); the Secretary of the Navy (for Item 2); H. Lee White for the Secretary of the Air Force (for Item 2); Lt. Gen. Idwal H. Edwards, Chairman, Special Evaluation Subcommittee of the NSC (for Item 2); Walter S. Delany, Office of the Director for Mutual Security (for Item 4); Kenneth R. Hansen, Office of the Director for Mutual Security (for Item 4); General Collins for the Chairman, Joint Chiefs of Staff; the Director of Central Intelligence; the Deputy Director of Central Intelligence (for Item 2); Lt. Gen. Harold R. Bull, Central Intelligence Agency (for Item 2); Robert Cutler, Special Assistant to the President; Lewis L. Strauss, Special Assistant to the President; C. D. Jackson, Special Assistant to the President; the NSC Representative on Internal Security (for Item 2); Marshall Chadwell, Central Intelligence Agency (for Item 2); …, Central Intelligence Agency (for Item 2); Herbert Blackman, Department of Commerce (for Items 4 and 5); the Military Liaison Officer; the Executive Secretary, NSC; and the Deputy Executive Secretary, NSC.

There follows a summary of the discussion at the meeting and the chief points taken.

[Here follows discussion of matters related to Korea and the atomic energy capabilities of the USSR.]

3. Effect on national security interests in Latin America of possible anti-trust proceedings (Memo for NSC from Executive Secretary, same subject, dated June 1, 1953²)

As the Council turned to consideration of the reference memorandum, Mr. Cutler explained that, owing to the connections between the Old Colony Trust Company, of which he had formerly been President, and the United Fruit Company, he thought it inappropriate for him to be present at the Council’s discussion of this item. He accordingly left the Cabinet Room

Thereupon the Attorney General³ reemphasized the dilemma confronting the Department of Justice as set forth in the reference memorandum.

After this brief statement the President noted the recommendations of the report, but suggested that a year be allowed the Justice Department for its efforts to convince the United Fruit Company of the desirability of abandoning practices which were inconsistent with the anti-trust laws. Not only would this longer time be useful in negotiating with the Fruit Company; it would give us an opportunity to strengthen our position in Central America in the event that the negotiations failed and it proved necessary to proceed with a civil suit.

The Attorney General replied that the Justice Department had selected the shorter period in order to instill a greater sense of urgency in its negotiations with the Fruit Company.

The President observed that he saw no reason to tell the United Fruit Company of the interval of time which was to be agreed upon.

Secretary Dulles expressed his appreciation of the interest and concern of the Department of Justice in the international implications of this action, and reiterated the view expressed earlier, with respect to the oil cartel, that we must review the whole legal position of United States companies operating abroad with respect to the anti-trust laws.

The Attorney General reminded Secretary Dulles that the Council had already directed the Department of Justice to review this problem.

Secretary Dulles said that he recalled this, but felt that he must again emphasize the terrible repercussions which suits like this⁴ had on our foreign policy objectives.

The President inquired whether it would not be possible to have the Anti-trust Division and the Department of State review this problem jointly in order to come up with a sensible proposal for revising the anti-trust laws as they related to cases such as this.

The Attorney General again pointed out that the Department of Justice was well along in its report on the problem, and expected to be able to present its results to the Council by the end of the month.

The National Security Council:

Agreed that, in view of the adverse effects on national security interests in Latin America of the proposed anti-trust proceedings, as stated in the enclosure to the reference memorandum:

a. The proposed anti-trust proceedings should be postponed, without prejudice to the Government, for one year.

b. The Attorney General should be directed to negotiate with the company, as a matter of urgency, for the elimination of practices deemed to be inconsistent with U.S. anti-trust laws, reporting back to the National Security Council on the results of these negotiations.

Note: The above action,⁵ as approved by the President, subsequently transmitted to the Attorney General for implementation.

1. This memorandum was drawn up by NSC Executive Secretary Lay and Deputy Executive Secretary Gleason on June 5.
2. This memorandum transmitted the NSC Planning Board report, supra.
3. Herbert Brownell, Jr.
4. Apparent reference to the Department of Justice action involving investigation of possible violations of anti-trust statutes by five major American oil companies operating in the Middle East; for documentation, see volume i .
5. NSC Action No. 805.