130. Memorandum of a Conference With the President, White House, Washington, July 10, 1957, 10 a.m.1
OTHERS PRESENT
- Secretary Wilson
- Secretary Quarles
- General Randall
- General Goodpaster
Secretary Wilson handed to the President a memorandum dated July tenth concerning the military program for fiscal year 1958–59.2 The President read it carefully. He then said that he agreed with the proposal regarding the total strength of 2.5 million, but did not necessarily agree with the distribution to services. As to the other provisions of the memorandum, he thought they looked sensible, but would not say that this is exactly what is to be done. The President thought that our position should be that, in view of the action of the Congress, the Department of Defense must plan on appropriations of approximately $36 billion for FY 1958; expenditures must be kept to $38 billion, and even this figure exceeds NOA by $2 billion. Unless Congress appropriates more in FY 59, further reductions will be required. He said that his reading of the memorandum led him to think that it proposes generally a good plan. He would not, of course, approve every detail.
Secretary Wilson said that the Administration must inform Congress of the military program it plans to carry out. The President said he was quite willing to write letters to appropriate leaders of the Congress on this matter. He was inclined to question the usefulness of any long discussion of the matter with the JCS. Mr. Wilson stressed that both the military and civilian heads of the services would feel much better for such a discussion. The President said that the problem is that he is, as of now, not in position to make specific decisions such as the indicated cut of 150 thousand for the Army. The Chiefs would know that he was being purely arbitrary. He felt he had had general discussions before which should serve the purpose indicated.
Mr. Wilson then went on to report that there is about $25 billion in outstanding orders “hanging out” in the future, and if prices continue to rise the cost of these contracts may increase materially before the bills are paid. The President said this simply confirmed his view that we must state publicly that we have been studying the matter intensively in view of the Congressional cuts and have arrived at certain decisions which must be put into effect immediately. He would also indicate that rising prices may, in effect, necessitate further reductions. [Page 548] He thought there should be two letters, one to the Congress, and the second a letter back to Secretary Wilson based on Secretary Wilson’s memo. Secretary Wilson said he had told Congressman Mahon3 that he would provide a new program as soon as Defense knew how much money would be available.
The President brought out that it would not be wise to use specific figures publicly. For example, use of the 2.5 million figure would destroy our negotiating position with the Soviets in the disarmament discussions now being conducted by Governor Stassen.4 He asked whether the information could not be given in Executive Session without public disclosure. Mr. Wilson said that so many programs must be readjusted to their figures, and they must be disseminated so widely, that knowledge of them would leak. Mr. Wilson also said that Congress had given enough money to support the present personnel strengths. He and his immediate assistants did not feel, however, that such heavy cuts should be made in procurement as would be made if personnel strengths were kept at present figures. Mr. Wilson thought he might state in the letters that new strength figures would be set in the Budget Message next January. In the meantime, he would simply take action to “pinch down” 100,000 in strength by January first.
The President said it would be desirable to cut down in his estimation on the proportion of officers. Never before have we tried to maintain full strength in officers in peacetime. He thought the reports should state that we had estimated a certain amount as required; we have received a certain lesser amount; we will use up a certain amount of our balance; there are certain cost increases lying out ahead of us; and to meet this situation certain actions must be taken, in over-all effect along the lines suggested in Secretary Wilson’s memorandum.
Brigadier General, USA