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  4. Document 268

MSA telegram files, lot W–131, “Paris Torep (1)”: Telegram

No. 268
The Deputy Director for Mutual Security (Kenney) to the Embassy in France 1

secret
priority
Washington , October 15, 1952—6: 12 p.m.

Torep 1711. Eyes only for Anderson from Draper. Subject: Approach to Congress re 53 Program and Fiscal 54. After Washington talks including top Defense, DMS and MSA/W officials, am able to report following course of action and agreements in principle which I consider should lead to a fairly satisfactory resolution of subject problems:

(a)
Agreement in principle was reached to split fiscal 54 OSP Program off from end item program thus eliminating necessity secondary allocation from their funds by respective armed services. OSP to be argued on merits of priority need to establish European defense base. General recognition was given to fact that a reduction in OSP below a certain minimum would put severe strain on whole NATO framework. I argued 53 OSP Program as currently conceived by Defense might be dangerously near or below this minimum. It was generally recognized that the difference of several hundred mil dollars would be crucial in the NATO area while the transfer of those funds would not solve the US production base problem. Finally, fact was recognized that the establishment of a European production base must be considered as a separate priority from that of establishing a US production base. It was clear before the meeting that a large segment of Defense Dept maintained that US would procure abroad only if the US mobilization base permitted. I believe that this thinking as a result of our meetings has been modified. It was thought that program of establishment of a European production base could be sold to Congress on above basis.
(b)
After I complained proposed reduction 53 ammo program which would have severe consequences in all countries except France where we have committed 99 mil, Pace instructed Lemnitzer to review OSP ammo with view to increasing amount for ammo to 300 mil.
(c)
Meeting was agreed in light of (a) and (b) above to review present planning for entire fiscal 53 program.

Kenney
  1. Drafted by J. Slater.↩