895.00/7–2953
Memorandum of Conversation, by the Officer in Charge of Korean Economic Affairs (Hemmendinger)
Subject:
- Korean Assistance Problems.
Participants:
- Secretary John Foster Dulles
- Mr. Walter Robertson, Assistant Secretary for Far Eastern Affairs
- Mr. Charles Wilson, Secretary of Defense
- Mr. Frank Nash, Assistant Secretary of Defense
- Mr. Harold Stassen, Director of Mutual Security
- Mr. Joseph Dodge, Director of the Bureau of the Budget
- Mr. Noel Hemmendinger, Office of Northeast Asian Affairs
The memorandum on the United States organization for economic aid activities in Korea which was circulated by the Bureau of the Budget under date of July 28, 1953,1 was considered and approved for submission to the President by Mr. Dodge.
In the course of discussion it was indicated that General Taylor is in command as CINCUNC during General Clark’s absence from the theater, but that General Clark was expected to resume his command in Tokyo. Mr. Robertson suggested that it was highly desirable that the activities of the United States of a civil character with respect to Korea be centralized in Korea, because the Koreans are extremely touchy with respect to domination from Japan. It was also pointed out that General Taylor is particularly well qualified to deal with President Rhee. Accordingly, the possibility of a delegation of responsibility for economic assistance matters from CINCUNC in Tokyo to General Taylor [Page 1454] was discussed. It was pointed out in this connection that the greatest possible simplicity of channels was desirable and it was agreed that Mr. Wilson would discuss the organization with General Clark upon his arrival with a view to possible delegation of responsibility to General Taylor perhaps with a direct channel of communications on matters of a civil affairs character to this Government in Washington.
The Secretary indicated that it probably would not be useful for him to take up matters relating to economic assistance in his forthcoming meeting with Rhee but that he should be prepared to reply to matters on economic assistance which President Rhee might raise. It was agreed that the Secretary should tell him that the President’s message to the Congress represented approval in principle of the Tasca report and that this Government intended to proceed with all speed in its implementation. The Secretary pointed out that the situation between this Government and the Republic of Korea was going to be quite difficult over the months to come and that President Rhee continued to hold good cards in his relations with us by reason of his power to disrupt the armistice. He emphasized that we must do everything we can both of a military character and of an economic character to gain and hold control of as many aspects of the situation as possible. On the economic side this meant control over the disbursement of funds and over any stockpiles of supplies in Korea. Mr. Dodge called attention to the necessity of reaching a firm understanding with the Republic of Korea with respect to the internal measures which must be taken for a program to succeed.
It was agreed that it is essential that a representative of the United States go soon to Korea as Economic Coordinator, but not in connection with the Secretary’s forthcoming meeting with President Rhee. Mr. Stassen said that it was not possible for Tasca to go back for family reasons and that he was considering sending Tyler Wood out as Economic Coordinator. Mr. Robertson pointed out that Tasca had developed a unique knowledge of the problems and a unique relationship with the Koreans, and that it would be desirable to send him out at the outset if only for a few weeks. It was agreed that the possibility of sending both, Tasca to stay only a few weeks, should be explored.