Office of the Historian

158. Memorandum of a Conversation, Department of State, Washington, June 7, 19571

Washington, June 7, 1957

SUBJECT

  • Call of the Australian Minister of Defense

PARTICIPANTS

  • Sir Philip McBride, Australian Minister of Defense
  • Sir Roland Wilson, Australian Secretary of Treasury
  • Sir Percy Spender, Australian Ambassador to U.S.
  • Mr. M.R. Booker, Counselor, Australian Embassy
  • The Acting Secretary, Mr. Christian A. Herter
  • Mr. Mein, [Deputy] Director, Office of Southwest Pacific Affairs
  • Captain Lemuel M. Stevens, U.S. Department of Defense

Minister McBride called to bid the Acting Secretary farewell.2 The Minister stated that he and his group were very pleased with the reception they had received and tremendously impressed with what they had seen. The Minister stated that in two meetings at the Pentagon he and his group had had an opportunity to outline the Australian Defense Program and to point out the deficiencies which cannot be met by the Australian Government alone.3 He stated that [Page 352] the question is one primarily of cost and Australia’s inability to meet the dollar expenditures, and that from the Australian Government’s viewpoint the problem becomes a common one in view of the role Australia must play in the part of the world. The Minister stated also that he had suggested several possible courses of action for consideration by the United States Government. He found considerable good will on the part of U.S. officials and although many difficulties are apparent he is convinced that the suggestions he has made will be given thorough consideration and that ways and means will be found if at all possible to meet these difficulties.

The Minister stated that he agreed with Mr. Quarles’ comment that an important step has been made in establishing personal relationships between the Services of the two countries and that it is important that the channel be kept open. The Minister was very pleased that the Defense Department has agreed to sending a technical mission to Australia to make further study of Australia’s production capacities.4

Sir Percy stated that as a result of the discussions with the Mission it appeared that the U.S. authorities 1) thought the new policy adopted by the Australian Government to be a wise one, 2) agreed that the major hurdle to meeting the deficiencies is the shortage of foreign exchange on the part of the Australian Government, and 3) they were rather surprised at the production capabilities of Australia which appear to be greater than they had estimated. He too expressed his appreciation for the way the Mission had been received.

The Acting Secretary thanked the Minister for his courtesy in calling before leaving and expressed his satisfaction with the way the talks had gone.

  1. Source: Department of State, Central Files, 611.43/6–757. Confidential. Drafted by Mein.↩
  2. In a previous conversation with Hoover, May 27, McBride expressed the desire of the Australian Government to supply military equipment to the SEATO area to bring down unit costs and help Australia finance the reequipment of its forces. (Memorandum of conversation by Mein; Ibid., 611.43/5–2757)↩
  3. Information regarding the first of these meetings has not been found in Department of State files.

    At the second meeting, held with a Department of Defense delegation headed by Deputy Secretary Quarles, June 6, McBride suggested that the United States provide Australia with “U.S.-type” military equipment to help Australia over the period in which its own production lines were being established. McBride also proposed storage in Australia of reserve supplies of U.S.-type equipment (to be usable by Australia under certain circumstances), arrangements for the reciprocal exchange of goods and services, the use of Australia for certain base facilities, and the visit to Australia of a U.S. technical mission. The U.S. side accepted the proposals for study while stressing the problems which might arise with the Congress with respect to loans of equipment and offshore procurement. (Minutes dated June 20 of Australian Mission meeting held June 6, prepared in the Department of Defense; Ibid., FE/SPA Files: Lot 65 D 141, Australian-U.S. Defense Relations)

    ↩
  4. A memorandum to the Service secretaries and certain other Department of Defense officials, August 16, by Mansfield D. Sprague, Assistant Secretary of Defense for International Security Affairs, enclosed terms of reference for this mission. Any negotiations with the Australian Government were specifically excluded. The mission was to ascertain Australian requirements for the support of the Australian role in ANZUS and SEATO, examine possible U.S.-Australian equipment coordination in the SEATO area (particularly with respect to fighter aircraft), assess Australia’s estimated deficiencies in military equipment, estimate the country’s capacity to manufacture U.S.-type military equipment, survey Australian research and development activities, and analyze the feasibility of a policy of standardization of equipment. (Ibid., Central Files, 743.5/8–1657) The technical mission spent most of October in Australia. A brief description of its activities is contained in despatch 186 from Canberra, November 12, not printed. (Ibid., 743.5–MSP/11–1257)↩