Foreign Relations of the United States, 1955–1957, National Security Policy, Volume XIX

125. Memorandum From the President’s Special Assistant for National Security Affairs (Cutler) to the President¹

Washington, July 1, 1957.

SUBJECT

• Further Application of “New Look” to U.S. Defense Effort Overseas

1. The National Security Council discussion on June 13, 1957, relative to U.S. policy toward Korea² indicated urgent need for U.S. action to reduce the mounting costs of our total defense effort.

2. Whereas reductions should be made among the various elements of the total defense effort so that domestic and foreign programs be kept in proper balance, the Council discussion on Korea focused attention on reductions in the U.S. defense effort overseas. The greatly increased power of modern weapons contributes to the feasibility of such reductions.

3. The Council discussion, giving fresh emphasis to the President’s concept of the “New Look” in our overseas defense programs, covered (a) redeploying more U.S. forces from overseas toward the U.S., (b) reducing overseas indigenous forces supported by U.S. military assistance, and (c) persuading our allies to place more reliance on our retaliatory capability to protect them from attack. Underlying this Council discussion was recognition that adjustments in our overseas programs should not: (a) foster tendencies on the part of our allies to let down in their support of their appropriate share of the collective deterrent; (b) weaken the political foundations on which our collective security is based; or (c) jeopardize our ability to apply force in a manner and on a scale best calculated to avoid local hostilities from broadening into general war.

4. The Planning Board could provide necessary staff work as the basis for decisions under this policy development. The Planning Board could prepare for Council consideration alternative courses of action, together with estimates of their effects (based on coordinated intelligence studies).

5. a. It is understood that consideration of the NATO area should not take place until after the German elections,³ or of the Near East area until specific later authorization.

b. The Planning Board could, however, now proceed to a comprehensive consideration of our policy in the Far East along the lines indicated in 6 below. Any U.S. action which might be taken, as a result of such consideration, would give weight to preserving proper balance in the U.S. defense effort between this area and other areas of the world.

6. a. Such Planning Board consideration of the Far East area would take into account: (1) the appropriate 1956 Prochnow Committee Reports;⁴ (2) the Defense presentation to the Council of the overall U.S. ballistic and non-ballistic missiles programs;⁵ (3) the Nash report on U.S. bases and facilities overseas;⁶ (4) the OCB report on U.S. official personnel overseas (uniformed, civilian, dependents);⁷ (5) the possibility of international agreements on disarmament; (6) results of Ambassador MacArthur’s study of the situation in Japan, the current Defense study of the reduction of U.S. military forces stationed in Japan, and the outcome of Prime Minister Kishi’s visit;⁸ (7) further developments regarding the Korean situation as a result of the Council action on June 13, 1957; (8) the latest OCB Progress Report on Formosa.⁹

b. Such consideration by the Planning Board, on the basis of this memorandum, would include reexamination from the military, political, economic, and psychological points of view of U.S. objectives in the area; the need for U.S. presence in the area (in terms of military forces and civilian personnel); the requirements for U.S. support of indigenous forces in the area; inducing greater reliance by nations in the area upon U.S. retaliatory power as a deterrent. Taking all the foregoing into account, the Planning Board could propose alternative recommendations as to how, when, and where reductions might be made in U.S. forces deployed in the area and in indigenous forces in the area supported by U.S. military assistance (thereby making improvements possible in the economies of the countries concerned).

7. Such a review of Far East policy could develop for the Council broad principles, which would be tested by application to specific countries within the area.

8. Following the completion of such Far East review, the Council could determine to what extent the principles developed for that area could be applied to other areas, such as NATO and the Near East.

R.C.¹⁰

1. Source: Department of State,S/S–NSC (Miscellaneous) Files: Lot 66 D 95, U.S. Security Effort Overseas. Top Secret. The words “revised draft” are typed on the source text next to the date. An earlier draft, dated June 19, is in the Eisenhower Library, Whitman File, Administration Series, Cutler. Cutler incorporated into this memorandum some suggestions on the June 19 draft Secretary Dulles sent to Cutler in a letter dated June 25. The second subtopics (a), (b), and (c) in paragraph 3, for example, were taken almost verbatim from Dulles’ letter. (Ibid., Project Clean Up)
2. This agenda item in the NSC memorandum of discussion is scheduled for publication in volume XXIII
3. The elections in West Germany were held on September 15.
4. The Prochnow Committee was an interdepartmental committee chaired by Herbert V. Prochnow, Deputy Under Secretary of State for Economic Affairs. The reports were specific reports on foreign aid and mutual security programs to Far East nations, Vietnam, Formosa, and Korea, prepared in response to an NSC request. See the NSC memorandum of discussion, December 8, 1955, and the memorandum from Prochnow to Secretary Dulles, July 27, 1956, vol. X, pp. 44 and 85. The specific reports on each country are not printed. (Department of State, OFD Files: Lot 59 D 620, All Countries, U.S. Aid Programs 1956)
5. See infra.
6. Regarding Nash’s study, see footnote 2, Document 83 and Document 172.
7. The OCB report on U.S. official personnel overseas, authorized by the NSC on July 18 (NSC Action No. 1752, approved by the President on July 22), was not considered by the NSC until April 24, 1958 (NSC Action No. 1900, approved by the President on April 25, 1958). (Department of State,S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)
8. Nobusuke Kishi, Prime Minister of Japan, visited the United States June 19–21. Documentation is scheduled for publication in volume XXIII.
9. Dated July 3, not printed. (Department of State,S/S–NSC Files: Lot 63 D 351, NSC 5503 Memoranda)
10. Printed from a copy that bears these typed initials.