FE files,
lot 55 D 480, “Korean Black Book, September 1954”: Telegram
The Department of the
Army to the Commander in Chief United Nations Command
(Hull)
secret
Washington, September 15, 1954—2:04
p.m.
DA 967743. From CAMG ref DA 967373, 8 Sep
54;1 Subj is ROK Econ &
Mil Talks.
[Page 1876]
Herewith is final text of Draft Minute context of which was discussed
with ROK at meeting 14 Sep.2 Copies will be provided to ROK officials here 15 Sep. ROK officials have been informed draft minute is to be
presented formally to their govt by Ambassador Briggs and General Hull. Signed letter from Secretary of Defense to
ROK Defense Minister (ltr
transmitted herewith in draft for your information) will be delivered
only when draft minute is initialed by ROK.
Further explanation and instructions regarding draft minute, Secretary of
Defense letter, and action to be taken will follow in separate message.
Draft minute3 is as follows:
“Draft Agreed Minute Between the Governments of the United States and the
Republic of Korea Based on the Conferences Held Between President
Eisenhower and President
Rhee and Their Advisers in
Washington, July 27–30, 1954 and Subsequent Discussions in Washington
Between Representatives of the Two Governments.
It is in the mutual interest of the United States and the Republic of
Korea to continue the close cooperation which has proved mutually
beneficial and has played such an important part in the Free World’s
struggle against Communist aggression and its determination to remain
free.
Accordingly,
It is the intention and policy of the Republic of Korea to:
- 1.
- Cooperate with the United States in its efforts to unify
Korea, including possible efforts through the United Nations to
secure this objective;
- 2.
- Retain Republic of Korea forces under the operational control
of the United Nations Command while that Command has
responsibilities for the defense of the Republic of Korea,
unless after consultation it is agreed that our mutual and
individual interests would best be served by a change;
- 3.
- Accept the force levels and principles set forth in Appendix B
which will permit the maintenance of an effective military
program consistent with economic stability and within available
resources;
- 4.
- Continue to encourage private ownership of investment
projects;
- 5.
- Cooperate in procedures for administration of United States
aid funds consistent with United States legislation and the
practices applied generally in such programs;
- 6.
- Take the necessary measures to make the economic program
effective, including those set forth in Appendix A.
Based upon the conditions which the Republic of Korea declares it will
create, it is the intention and policy of the United States to:
- 1.
- Continue its program of helping to strengthen the Republic of
Korea politically, economically and militarily, with programmed
economic aid and direct military assistance furnished during
Fiscal Year 1955 to aggregate up to $700 million. This amount
would exceed by more than $100 million the amount of assistance
previously contemplated by the United States for Korea in Fiscal
Year 1955. Of this total, programmed economic aid, including the
CRIK carryover and the
United States contribution to UNKRA, available for obligation in Fiscal Year 1955
would amount to approximately $280 million (actual expenditures
in Fiscal Year 1955 are estimated at approximately $250
million);
- 2.
- Support a strengthened Republic of Korea military
establishment as outlined in Appendix B, including the
development of a reserve system, in accordance with arrangements
to be worked out by appropriate military representatives of the
two Governments;
- 3.
- Consult fully with appropriate military representatives of the
Republic of Korea in the implementation of the program for
support of the Republic of Korea military establishment;
- 4.
- In the event of an unprovoked attack upon the Republic of
Korea in violation of the armistice,4 to employ, in
accordance with its constitutional processes, its military power
against the aggressor;
- 5.
- Support the unification of Korea by all peaceful means;5
- 6.
- Subject to the necessary Congressional authorizations,
continue to press forward with the economic program for the
rehabilitation of Korea.
[Page 1878]
Appendix A
Measures for an Effective Economic
Program.
The Republic of Korea will undertake the necessary measures to make
the economic program effective, including:
- 1.
- with respect to exchange rates, the official rate of the
Republic of Korea Government and the counterpart rate being
180 to 1, agreement to procedures as proposed by the United
States for the conversion of dollars at a different and
realistic exchange rate to cover hwan drawings of United
States forces by sale of dollars through the Bank of Korea,
and generally to price aid goods into the Korean economy at
a similar rate, thereby providing for the maximum
contribution to the Korean economy and to the Korean budget
from use of these resources. The operation of existing
agreements with respect to hwan drawings by the United
States will be suspended so long as the foregoing
arrangements work out in practice to the mutual satisfaction
of both Governments;
- 2.
- agreement that material for the aid program—not furnished
from the United States in kind—will be procured wherever in
non-Communist countries goods of the required quality can be
obtained at the best price (it being the objective to
perform the maximum possible procurement in Korea at
competititve world prices);
- 3.
- provision of adequate information to the appropriate
United States representatives concerning Korean plans for
the use of their own foreign exchange; and
- 4.
- a realistic effort to balance its budget and continue to
resist inflation (it will be the objective of both
Governments to develop the budget of the Republic of Korea
in a manner that will resist inflation).
Appendix B
Republic of Korea Force Levels for
Fiscal Year 1955 and United States Support Thereof.
1. The United States will assist in supporting the following maximum
number of military personnel during Fiscal Year 1955:
| Army |
661,000 |
| Navy |
15,000 |
| Marine Corps |
27,500 |
| Air Force |
16,500 |
| Total |
720,000 |
If the Korean Government desires to make minor shifts in numbers as
between the four services after discussion with CINCUNC, the United States will
agree to such adjustments as long as the maximum of
[Page 1879]
720,000 is not exceeded. It is
understood that the 720,000 total includes all men being trained in
training camps and any full-time personnel serving with reserve
units.
2. Pending joint consultation and agreement between the Republic of
Korea and the United States on a revised over-all budgetary plan,
including both military and economic programs, within resources made
available, there may be an increase in military pay from the current
average rate of 6,900 hwan per man to an average annual rate not to
exceed 20,000 hwan per man and in food allowances from the current
average rate of 24,800 hwan per man to an average annual rate not to
exceed 38,000 hwan per man effective on or after January 1, 1955. In
order, however, to ensure that U.S. assistance and/or other factors
permit such increases without adverse effect on the Republic of
Korea financial and economic position, the Republic of Korea will
consult with CINCUNC before
putting such increases into effect. The food allowances will
continue during FY 1955 to be
supplemented by U.S. direct ration assistance at approximately
current levels (currently ‘combat’ rations and components for
biscuits). Decisions regarding any additional increases in pay and
food allowances desired by the Republic of Korea will be reserved
for subsequent discussions.
3. The Republic of Korea will undertake the formation of reserve
divisions, which will include trained and organized men with former
active service, toward a goal of 10 such divisions to be organized
by the end of calendar year 1955. Training for the Army will be
accelerated as soon as practicable from approximately 10,000 men per
month to 20,000 per month. It is assumed that training at somewhere
near this level will continue for at least a year and perhaps as
much as two years by which time all of the young men of suitable age
will have been in the military services and put through the training
camps. At that time the training will drop down to approximately
10,000 per month, not including the training and recruitment for
Navy, Marines and Air Force. As the training load diminishes and
trained reserve strengths are attained, the total number of active
military personnel will be adjusted accordingly.
4. The United States will supply reserve divisions with the necessary
equipment, quartermaster items, and other supplies necessary for
them to undergo and maintain a reasonable state of training. With
respect to equipment and ammunition, it is contemplated that it will
be necessary to issue small arms and training ammunition, and that
essentially all other equipment will be provided by reallocation of
material from the active Republic of Korea forces resulting from the
implementation of recommendations to revise tables of organization
and equipment. Details of these recommendations are outlined in a
letter of this date from the United States Secretary of Defense to
the Minister of National Defense of the Republic of Korea.
[Page 1880]
The amount of equipment required for training reserve divisions will
be determined by CINCUNC after
consultation with the Minister of National Defense of the Republic
of Korea.
5. The United States will assist in the training and organization of
the reserve divisions under a plan to be worked out by CINCUNC in consultation with the
Minister of National Defense of the Republic of Korea.
6. As a matter of policy and in the interest of efficiency and
economy of manpower and resources, functions which are common to
more than one service will be operated under a combined type of
organization which will have the responsibility of serving all of
the military forces.
7. The Korean Navy will continue to build up during Fiscal Year 1955
toward the goal of 79 vessels (as currently recommended by the
United States Chief of Naval Operations). The ships required for
this build up of the Republic of Korea Navy will be supplied by loan
from United States sources under the condition that the loan of the
vessels shall not be for a period exceeding 5 years and the United
States Government retains the right to reclaim the vessels at any
time during the 5-year period, when and if the United States
Government in its own discretion should decide that such vessels are
no longer being used to serve the best interests of both the Korean
and the United States Governments. Within the number of personnel
outlined in paragraph 1 above, the Republic of Korea Marines will be
reorganized from the present brigade to a division.
8. The United States will make available jet fighter and jet trainer
aircraft to the Korean Air Force in such quantities and at such
times as the Korean Air Force pilots have demonstrated the
capability to properly utilize this equipment. The determination of
this capability will be made by CINCUNC. Based on the foregoing, the United States will
plan to make available 10 T–33 jet type trainers and, subsequently
as the need is demonstrated, 30 F–86F and 16 C–46 aircraft during
1955, and the remainder of one Jet Fighter Wing (45 additional
F–86F’s to complete unit equipment and up to 10 additional F–86F’s
for attrition) by the end of Fiscal Year 1956.
9. All new military construction projects not under construction will
be deferred to Fiscal Year 1956 for further review. Minimum
facilities for an arsenal and the reworking of ammunition and those
construction projects specifically approved by CINCUNC will be funded for
construction in Fiscal Year 1955.
10. The Republic of Korea military budget will be jointly reviewed
and analyzed by the Republic of Korea and CINCUNC in order to assure that the
military program will produce the most effective forces at minimum
cost. The Republic of Korea will undertake to revise the present
budget of the Ministry of National Defense for Fiscal Year 1955 in
order to effect adjustments in the budget conforming to the
principles
[Page 1881]
set forth
above, to eliminate from the budget such items as are found to have
been budgeted in excess or in conflict with austerity standards, and
to eliminate from the budget such items as will be replaced by the
items the United States will supply the Republic of Korea Armed
Forces under programs of military assistance. The implementation of
the aid program planned by the United States contemplates that
approximately 35 billion hwan will be made available by the Republic
of Korea for the military program in Fiscal Year 1955.
11. The Republic of Korea will cooperate with CINCUNC by implementing
recommendations designed to increase the effectiveness of the
Republic of Korea Armed Forces and effect economies therein. [“]
[Attachment C]
Draft letter:
“My dear Mr. Minister:
“During recent conversations between representatives of the
United States and representatives of the Republic of Korea
in connection with the economic and military assistance
programs for Korea for Fiscal Year 1955, it was agreed that
certain details of the mutual understanding between the two
Governments of a classified military nature should be the
subject of a separate communication from the Secretary of
Defense of the United States to the Minister of National
Defense of the Republic of Korea.
“Following are examples of some of the specific actions to be
undertaken during Fiscal Year 1955:
- “1. The implementation of recommendations made by
General Van
Fleet relating to tables of
organization and equipment can result in the
elimination of the requirement for approximately
52,000 military personnel in non-combat type units
(a list of which is attached). This action will
generate quantities of equipment which could be made
available to reserve divisions.
- “2. The implementation, as indicated below, of the
following recommendation made by General Van Fleet,
in order to distribute artillery more effectively
between the active and reserve forces (it is
contemplated that all artillery now in the hands of
the Republic of Korea military forces will remain in
Korea and title thereto will continue to remain with
the United States):
‘Two economies with respect thereto can be
effected:
- (1)
- reduction from a six (6) to a four (4) tube
battery, and
- (2)
-
shift of medium battalions from divisions
to Corps or Army level, plus retirement of 50% of
such units to reserve status.’
(The retirement to reserve units will be
determined by CINCUNC after consultation with the
Republic of Korea.)
General
Hull concurs in the above
recommendations.
- “3. The implementation of the recommendations made
by the 8th Army and discussed with the Republic of
Korea military officials relating to the quantities
of vehicles required by the Republic of Korea Army.
This will result in a reduction in the quantities of
vehicles required for the active Republic of Korea
forces.
- “4. As a matter of policy and in the interest of
efficiency and economy of manpower and resources,
separate organizations for common logistic services,
such as the procurement, receipt and distribution of
supplies, medical care, schools, industrial
facilities, etc., will not be established or
continued in each of the Republic of Korea military
services. Such functions which are common to more
than one service will be operated under a combined
type of organization which would have the
responsibility of serving all of the military
forces. Since the Republic of Korea Army is the
principal consumer of common-use supplies, it would
be expected that common-use supply facilities would
be operated by the Republic of Korea Army, with
appropriate representation by the other consuming
services.
“In addition to the above, as we both understand, it will be
necessary to conduct a continuing review of the military
program in order to effect additional economies so that the
greatest possible strength may be attained within the
resources available.
“This letter is incorporated by reference in the ‘Agreed
Minute’ and is part of the mutual understanding of this date
between the Governments of the United States and the
Republic of Korea.”
[Here follows an enclosure entitled, “Noncombat Units Whose Deletion
from the Standing ROK Army Was
Recommended by Gen Van
Fleet”.]
