165. Memorandum of a Conference With the President, White House, Washington, November 22, 19571
OTHERS PRESENT
- Secretary McElroy
- Secretary Quarles
- Dr. Killian
- General Goodpaster
Immediately following the Cabinet meeting,2 the President met with the group to consider a few points on the military budget. He said that he wanted to approach these proposals not on the basis of “can we do it in response to public outcry,” but “should we do it.” The matter is not one of justification, but rather of need. He mentioned that the psychology of the business community will be of the utmost importance in our financial affairs next year, and alluded to a letter3 which indicated that confidence would be impaired, businessmen would be cautious, and a drop off in the economy would occur, if we went in for a high budget this year.
He said he was not trying to set himself up as knowing the exact amounts that should be scheduled, and under what arrangements with regard to the proposed additional $573 million for guided missiles. He said he did want to have things that are well proven before we commit ourselves to procurement. If we are not reasonably sure, we could put them into our request if we desire, but must bring out that we might place contracts of only $200 million, but might go to the full $573 million if technology justifies it. He said that the same end could probably be accomplished by coming back to Congress for a supplemental after January 1, 1959.
Mr. Quarles reviewed the schedule on which these funds were based. Initially we had planned to put an emergency force in the UK in mid-1958, with one squadron established in 1959. Later we thought we would omit the emergency force and work for one squadron in 1959, rising to four squadrons in 1960. Within the last few weeks we have studied programs going beyond the four-squadron plan, and now propose to move toward sixteen squadrons in 1963. If we are willing to take some chances, with considerable confidence, but not [Page 688] with certainty, we could go to a program of one squadron in the United Kingdom by the end of calendar year 1958, and another squadron—this one capable of “quick reaction time”—by July 1959.
The President asked why we had changed from the idea that we would select as between Thor and Jupiter at an early date. Mr. Quarles said there was not enough evidence that either would become a satisfactorily proven weapon. He thought Mr. Holaday was about to recommend proceeding with the United Kingdom commitments on the basis of Thor. If we wished to have continental deployments before the end of 1959, we should also use Jupiter for that purpose. By accelerations we could get the first squadron by the first quarter of 1959. The President acknowledged that the production of both would probably be faster than the production of one, since the technicians are in being and functioning now.
He then reverted to his view that we should not spend money simply because of public pressure, but should do what is based on real need. He stressed that the whole arms question is relative and that Soviet ICBMs will not overmatch our bomber power in the next few years. He thought we should go forward simply as fast as our good sense and the probabilities of the situation seem to warrant.
Mr. McElroy said it would cost money at an earlier date to move toward the accelerated deployments. He stressed, however, the psychological impact of the first units for initial deployments. He thought we need not race to conclude further agreements and said we would work with the State Department not to press us too hard. Mr. Quarles added that missile deployments are really the crux of the forthcoming NATO meeting.4 The ability to carry these out is most important.
The President recalled that we thought we had a pretty fine budget at $38 billion. He was agreeable to adding $700 million for improved pay, and would agree to the $573 million additional for acceleration of missiles, when the funds are in fact required. He then discussed briefly the question as to where the $140 million for additional research is to go.
Mr. McElroy concluded by saying that we will be up approximately $700 million in expenditures above FY–58, and this is just the amount of the pay increase proposed. He thought we should be somewhere between $39 billion and $40 billion in NOA.
Brigadier General, USA
- Source: Eisenhower Library, Whitman File, DDE Diaries. Secret. Drafted by Goodpaster on November 23.↩
- The Cabinet meeting was held 8:50–9 a.m. (Ibid.,Eisenhower Records, Appointment Book for 1957) No summary of the meeting has been found in the Eisenhower Library or Department of State files.↩
- Not found in the Eisenhower Library or Department of State files.↩
- For documentation on the NATO heads of government meeting in Paris, December 16–19, see vol. IV, pp. 1 ff.↩