Foreign Relations of the United States, 1955–1957, East Asian Security; Cambodia; Laos, Volume XXI

164. Memorandum of Discussion at the 335th Meeting of the National Security Council, Washington, August 22, 1957¹

Washington, August 22, 1957

[Here follows a paragraph listing the participants at the meeting and agenda items 1–5. Under Secretary of State Christian A. Herter attended for Secretary Dulles.]

6. Long Range U.S. Policy Interests in Australia and New Zealand (NSC 5713;² Annex to NSC 5713;³ NSC Action No. 1725;⁴ NSC 5713/1;⁵ Memo for NSC from Executive Secretary, same subject, dated August 20, 1957⁶)

Mr. Cutler briefed the Council at length on the contents of NSC 5713/1, and explained the only split in the paper, which occurred in the final paragraph, as follows:”

Be prepared to consider any further proposals by Australia and New Zealand [not involving U.S. grant aid or ‘soft’ loans]⁷ for the progressive standardization of their military equipment on U.S. models.”

Mr. Cutler then called on Secretary Anderson and Mr. Brundage to explain why they felt that it was desirable to include the bracketed language in paragraph 22–c.

Secretary Anderson said that he simply felt that there was a definite limit to what the United States could afford to do by way of assistance world-wide, and that therefore we ought not to contribute grant aid or make soft loans to Australia or New Zealand. He did not mind, however, lending these countries soft currencies as opposed to granting them soft loans.

Mr. Brundage said that his reason for desiring the bracketed language stemmed from his fear that if this language were now left out, people at some future time might cite this paragraph as justification for U.S. grant aid to Australia or to New Zealand.

Secretary Herter feared that if this bracketed language remained in the paper, our hands would be tied over the indefinite future, though for the foreseeable future he agreed that we had no intention of offering grant aid to these countries, or soft loans. Mr. Brundage replied that we could, of course, always change our policy if events some day indicated that we should provide grant aid or soft loans to Australia and New Zealand.

Secretary Wilson said that he agreed with the views of Secretary Herter, and added that the time might well come when we need Australia and New Zealand more then we need them now.

Mr. Cutler inquired of Secretary Anderson and Mr. Brundage whether, in view of what was stated on page 14 in the “Financial Appendix Note” as to our not anticipating any significant expenditures in Australia or New Zealand, there was real need for including the bracketed language in paragraph 22–c. Secretary Anderson replied that he didn’t care very much one way or another, although he still was a little worried as to what the words of this paragraph might mean to officials of this Government who were not aware of the views of the members of the Council on this issue. Secretary Anderson then agreed to leave out the bracketed phrase provided the Record of Action indicated the Treasury’s concern. He merely wanted to be sure that no official of this Government informed the Australians that they could get a soft loan from the United States.

Mr. Gray suggested, as an alternative to Secretary Anderson’s proposal, that the “Note” on page 14 be added to the text following paragraph 22–c. This proposal met with general agreement.⁸

The National Security Council:⁹

a. Discussed the draft statement of policy on the subject contained in NSC 5713/1, in the light of the views of the Joint Chiefs of Staff thereon transmitted by the reference memorandum of August 20, 1957.

b. Adopted the statement of policy in NSC 5713/1, subject to the following amendments:

(1) Page 13, paragraph 22–c: Delete the bracketed phrase and the footnote relating thereto.

(2) Page 13: Insert the “Note” on page 14 immediately following paragraph 22–c.

Note: NSC 5713/1, as amended, subsequently approved by the President and circulated as NSC 5713/2 for implementation by all appropriate Executive departments and agencies of the U.S. Government, and referred to the Operations Coordinating Board as the coordinating agency designated by the President.

S. Everett Gleason

1. Source: Eisenhower Library, Whitman File, NSC Records. Top Secret; Eyes Only. Drafted by Gleason on August 23.
2. Document 155.
3. Not printed. (Department of State, S/S–NSC Files: Lot 63 D 351, NSC 5713 Series)
4. See footnote 6, Document 157.
5. Dated August 12, not printed. (Department of State, S/S–NSC Files: Lot 63 D 351, NSC 5713 Series) All differences between NSC 5713/1 and NSC 5713/2, infra, are revealed by NSC Action No. 1779. See footnotes 8 and 9 below.
6. Not found in Department of State files.
7. “Treasury and Budget proposal.” [Footnote and brackets in the source text. The quoted paragraph and the footnote were read at the Council meeting.]
8. This change resulted in the “Note” being added to the last page of the paper instead of being on a separate page following the paper.
9. Paragraphs a–b and Note constitute NSC Action No. 1779. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)