S/S–NSC files, lot 63 D 351, NSC 146 Series
Memorandum by the Secretary of
Defense (Wilson) to the Executive Secretary of the
National Security Council (Lay)
Washington , January 26, 1954.
- Review of Chinese Nationalist Force Levels
- Attached is a review of the Chinese Nationalist force levels by the Joint Chiefs of Staff, taking into account the discussion of the Chinese Nationalist forces by the National Security Council at its 169th meeting on November 5, 1953, and the policy set forth in NSC 146/2.2
- The present military aid program planned for Formosa in FY 1954 totals $359.5 million. This amount falls short of the JCS estimate of the requirements to implement NSC 146/2 by approximately $250 million. In addition, it has been necessary to transfer funds amounting to $716 million in the FY 1954 military aid program to meet emergency requirements for Indochina and other reservations. [Page 351] In order to meet this amount, some reduction of the Formosan program will be required during FY 1954.
- The proposed FY 1955 Mutual Military Program contains $1,144.5 million of new obligational authority to meet military matériel and training programs world-wide. From this amount, $350 million are the estimated requirements for Indochina alone. Thus, under the present programming, it appears that funds required to implement NSC 146/2 as estimated by the JCS, cannot be made available before FY 1956.
- There seem to be two alternatives available to the National Security Council: (1) to seek additional funds for the Formosan program by reducing other military commitments; or (2) to review the anticipated mission of the Nationalist forces as expressed in paragraph 12–a of NSC 146/2.
- The Department of Defense, in accordance with the views of the Joint Chiefs of Staff, recommends that the National Security Council review NSC 146/2 at the earliest possible moment with a view to setting forth a mission for the Chinese Nationalist forces which can be supported within the level of the military assistance funds available.
C. E. Wilson