Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

421. Letter From the Secretary of State to the Secretary of Defense (Wilson)¹

Washington, February 14, 1955.

Dear Mr. Secretary: The questions raised in your two letters of January 28, 1955² regarding logistical support furnished to Colombian and Thai vessels operating in Korean waters in the service of the United Nations are intimately connected with the general problem of making settlements with a number of nations for logistical support furnished by the Departments of the Navy, the Army, and the Air Force.³

The application of the policy of the National Security Council referred to in the letter on Thailand was, as you know, made subject to advice by the Attorney General as to whether new legislation would be required. After consulting the Attorney General, such legislation was drafted last year; however, we understand that the draft bill was not introduced because of certain fiscal questions involving the Department of Defense that could not then be resolved. We also understand that legislation is under consideration for introduction at this session of the Congress, in the event that additional statutory authority is determined to be necessary at this time.

Until the contemplated legislative authority is obtained, or the existing authority of the President is clarified, the Department of State considers that it would be impracticable for the Executive Branch to initiate negotiations in cases, such as Colombia and Thailand, where it is known at the outset, from their economic situation or previous discussions with the governments concerned, that the prospects for full payment are poor. To proceed in such circumstances would invite an immediate deadlock that could prove adverse to United States interests in the long run. As you know, National Security Council policy envisaged the possibility of making settlements at less than the full amount where countries cannot reasonably be expected to pay in full.

The office of the Comptroller of the Department of the Army, which has acted as executive agent for the three armed services in connection with the negotiation of settlement agreements, has been kept informally advised by the Department of State of these views and developments. It is understood that the Office of the Assistant Secretary of Defense, International Security Affairs, is also informed as to these matters.

In general, the Department of the Navy has been successful in making special arrangements for settlement of logistical support obligations independently of arrangements for settlement of Army and Air Force claims. Where, however, the Navy has been unable to work out such arrangements, as in the Colombian and Thai cases, it is believed that the question of obtaining a settlement for the logistical support supplied by the Navy will have to be considered in the context of the need to obtain a settlement for the logistical support supplied by the Army and the Air Force.

When the legal basis for dealing with these problems is clarified, the Department, in cooperation with the Department of the Treasury and the military agencies, will be able to take constructive measures on these matters.

Sincerely yours,

For the Secretary of State:

RM
Deputy Under Secretary

1. Source: Department of State, Central Files, 721.5621/1–2855. Confidential. Cleared by ARA, OSA, and FE.
2. Neither printed. (Ibid.)
3. Documentation on the problem of settlements for logistical support during the Korean conflict is printed in Foreign Relations, 1952–1954, volume XV.