Foreign Relations of the United States, 1955–1957, Foreign Aid and Economic Defense Policy, Volume X

208. Memorandum From the Secretary of the Council on Foreign Economic Policy (Cullen) to the Members of the Council¹

Washington, November 8, 1955.

SUBJECT

• CFEP 526—U.S. Stockpile Program and Its Relation to U.S. Foreign and Domestic Problems

1. In view of the time that has elapsed since CFEP 526 was initiated,² the following status report is submitted for the information of Council members.

2. The Council on May 17 requested ODM to submit a factual report concerning (a) “the nature, purpose and limits of the minimum, long-term and supplemental stockpile objectives and their relationship to each other,” and (b) “the extent and manner in which transactions related to these stockpiles may have been used to accomplish purposes in addition to the provision of a supply of materials which have been determined as required solely in the event of war.” (The Council agreed that upon receipt of the report, consideration would be given to a further review of the subject.)

3. The above action was the result of previous discussions by the Council on February 15, March 1, and March 8 concerning the stockpile program (CFEP 517).

4. ODM advised on May 18 that the requested report would be ready for Council consideration by May 31.

5. On May 25 ODM reported that Mr. Flemming had decided that the report should not be submitted to the Council until it had been approved by the Defense Mobilization Board, and it would take approximately 30 days to prepare the report and obtain DMB approval.

6. A report was prepared by ODM and submitted to the DMB on August 10, 1955.³ This report discussed the nature, purpose, and relationship of the different stockpiles but did not cover the limits of the stockpile objectives and did not state or discuss the extent and manner in which stockpile transactions may have been used to accomplish purposes other than to provide materials required solely in the event of war.

7. The DMB considered this report at its meeting of August 17 but deferred action thereon pending a review by the NSC as to whether stockpiling should be based on a five year war (as is now the case) or one of lesser or greater duration.

8. The question raised in paragraph 7 above was referred to the NSC, which is expected to consider the matter in the near future. The report the CFEP requested cannot be completed until the question of stockpiling for a five year war, or one of lesser or greater duration, is determined.

9. ODM was advised on September 15, 1955 that the report submitted to the DMB did not satisfy the request of the CFEP on May 17. ODM gave assurance that the report to be submitted to the CFEP would cover the subject as requested.

Paul H. Cullen
Lt. Col., USA

1. Source: Department of State, E–CFEP Files: Lot 61 D 282A, U.S. Stockpile Program—CFEP 526. Secret.
2. At the meeting on March 8 the Council decided that its consideration of the Office of Defense Mobilization (ODM) recommendations with respect to Agenda Subject 517, “Strategic Stockpile and P.L. 480,” should be deferred pending “reconsideration of the fundamental policies related to the objectives, size, and uses of the stockpile program.” The minutes of this meeting are in Eisenhower Library, CFEP Records.
3. Document 213.