Office of the Historian

240. Memorandum From the Deputy Assistant Secretary of State for European Affairs (Elbrick) to the Deputy Under Secretary of State for Political Affairs (Murphy)1

Washington, June 15, 1956.

SUBJECT

  • Plan K Military Assistance for the British2

Gordon Gray, in his letter of May 17, 1956, in reply to your letter of April 18, 1956, indicated the concurrence of the Department of Defense in the desirability of carrying through with the agreed U.S. share of the Plan K program, despite the stretch out and decrease in the RAF program.3 Specifically it was agreed to transfer to the purchase of Corporal guided missiles the unobligated balance of Plan K funds of approximately $30 million originally intended to finance the build-up of the RAF. In return for the saving of dollars, the British Government was agreeable to a transfer of sterling, in an amount equivalent to the cost of the missiles, from its Army appropriations to cover the cost of the RAF buildup hitherto intended to be financed under Plan K assistance.

Defense gave its concurrence “in view of the importance of forestalling any further reduction in U.K. support of its present NATO committed forces”. They also requested certain further conditions on the handling of other Plan K funds, which originally totaled $210 million, to which the Department of State and ICA agreed. These conditions have been included in the aide-mémoire which is now ready to present to the British. Our London Embassy agrees with our draft of the aide-mémoire.4

It was agreed among State, Defense, and ICA that a paper on the Plan K proposal be prepared for presentation to Congressional committees.4 This paper was presented on May 31 to the Senate Foreign Relations Committee (George), the Senate Appropriations Committee (Hayden), the House Foreign Affairs Committee (Richard) and the House Appropriations Committee (Cannon). It was further agreed among State, Defense and ICA that, if at the expiration of a week following presentation of the paper the Congressional committees did not object to the proposed arrangement, the aide-mémoire would be presented to the British. Negotiating instructions, cleared by the three [Page 661] agencies, would be sent to our Embassy at London. The week’s period expired June 8. As of June 13 Defense and ICA agreed to our forwarding the instructions to London and the presentation of the aide-mémoire to the British.

On June 12, however, the British Ambassador presented to the Secretary a note indicating the U.K.’s intention to reduce its forces,5 including a reduction in numerical strength of the British 2nd Tactical Air Force in Germany. This would, in effect, make release of the Plan K aide-mémoire and instructions inconsistent with the Department of Defense rationale for its concurrence in the proposed Plan K arrangement.

Recommendation

That the Department withhold action on Plan K and delay notification to the British of the favorable United States decision until we have:

(1)
more information on British plans concerning their defense effort;
(2)
further discussion with the Defense Department; and,
(3)
briefed interested Congressional Committees on recent developments.6

  1. Source: Department of State, Central Files, 741.5–MSP/6–1556. Confidential. Drafted by Warrick E. Elrod, Jr., and Ernest A. Lister and approved by Murphy.↩
  2. See footnote 2, Document 210.↩
  3. Neither letter is printed. (Department of State, Central Files, 741.5/5–1756 and 741.5–MSP/3–156, respectively)↩
  4. Not found in Department of State files.↩
  5. Not found in Department of State files.↩
  6. Not printed. (Department of State, Central Files, 741.5/6–1256) The Embassy in London’s estimate of the development of the U.K. armed forces, 1956–1962, is in despatch 1500, December 29, 1955. (Department of State, Central Files, 741.5/12–2955)↩
  7. Murphy initialed his approval of the recommendation.↩