139. Memorandum of a Conversation Between the President and the Assistant Secretary of State for European Affairs (Elbrick), U.S. Embassy Residence, Paris, December 16, 1957, 9 a.m.1

USDel/MC/11

SUBJECT

  • Support Costs

In the course of a briefing for the President regarding matters that Macmillan might raise with him during his call this morning, I mentioned the question of support costs for foreign forces in Germany. I said that the British might want to know what our intentions are with respect to support costs for our own forces next year, since this would have a bearing on the German decision to grant support to the British. While no decision had been taken in the Government [Page 345] regarding our intentions for next year, it looked as though we had very little chance of getting any more money out of the Germans. We had asked for a second slice of $77 million for the current year, but had had no reply from the Germans. If we pressed for funds for next year, our chances of receiving even the $77 million would be reduced.

The President said he thought the Germans had been very slow in meeting their defense obligation under NATO. He said that we have a Congressional problem and asked how this particular item is presented in the Defense budget. I said that the costs of our forces in Germany are presented by Defense as a separate item and that Congress in the past has not appropriated money for this purpose. I said that Brentano informed us very recently that expenditures for the German forces will begin to mount rather sharply next year; they expect to spend 14 billion marks next year, 17 billion in 1959, and 21 billion in 1960. Currently they are spending 9 billion for their own forces and 1.2 billion for support of foreign forces.

The President said he felt that the British have a serious problem here. As for ourselves, we are more or less committed to defense of the line in Europe in any event. Our request for support costs from the Germans has not the same basis as the British request. He thought that we would probably have to refrain from requesting support for next year even though there would be attacks on this decision from certain Congressional quarters.

  1. Source: Department of State, Presidential Memoranda of Conversation: Lot 66 D 204. Confidential; Limit Distribution. Drafted by Elbrick.