196. Minutes of Cabinet Meeting1
The following were present
- President Eisenhower
- Mr. Douglas Dillon for Sec. Herter
- Mr. Fred Scribner for Sec. Anderson
- Sec. McElroy
- AG Rogers
- PMG Summerfield
- Sec. Seaton
- Sec. Benson
- Sec. Mitchell
- Sec. Mueller
- Sec. Flemming
- Gov. Hoegh
- Director Stans, BoB
- Mr. Ralph Reid
- Dr. Saulnier, CEA
- Mr. John A. McCone, AEC
- Mr. George Allen, USIA
- Mr. J. Roy Price, OCDM (part time)
- Mr. Russell H. Hughes (part time)
- Mr. Emil W. Reutzel (part time)
- Mr. Wm. McC. Martin, FRS
- Mr. Bradford Morse, VA (part time)
- Mr. Norman Mason, HHFA
- Dr. Hugh Dryden, NASA (part time)
- Gen. Persons
- Major Eisenhower
- Mr. Merriam
- Mr. Morgan
- Mrs. Wheaton
- Mr. Harr
- Mr. Harlow
- Mr. Siciliano
- Mr. Kendall
- Mr. Gordon Gray
- Mr. Robert Gray
- Dr. Kistiakowsky
- Dr. Paarlberg
- Mr. Minnich
[Omitted here is discussion of other subjects.]
[Facsimile Page 2]Stockpiling—Gov. Hoegh went over the Cabinet paper, pointing out the history of stockpiling and outlining the current situation as regards excesses. He explained that the excess resulted from the reduced goals as a result of the three-year concept, the change in strategical concepts, the expansion of some sources of supply, and obsolescence of some materials; of a slightly different nature were the excesses resulting from operations under P.L. 480. He presented several charts giving the quantative status of selected materials. He pointed out that at present there are over $7 billion worth of materials in the stockpile, of which $3.76 billion were for filling established objectives; the remainder is excess. [Typeset Page 827] Under the proposed plan, $4.22 billion worth would constitute objectives, leaving an excess of $2.95 billion.
Gov. Hoegh repeatedly emphasized that disposal of excesses would be undertaken only if the market conditions for the item were satisfactory and if disposal would not adversely affect our foreign relations. He made clear that it is proposed at this time to sell only natural rubber. There will be further interagency discussions prior to any disposal of aluminum. As regards other minerals, the market is not in satisfactory condition at this time.
Gov. Hoegh also stressed the importance of pressing again next year the general legislation which would eliminate the requirement for a six-month waiting period prior to any disposal.
Gov. Hoegh then went over the specific recommendations in the Cabinet Paper. Following this, Sec. Benson inquired whether the three-year requirement was based on estimates of need in an all out war. Gov. Hoegh said the basis was that of a three-year period of emergency, not necessarily related to the duration of any potential war. The President [Facsimile Page 3] added a word about his own concern with having resources at hand for accomplishing recovery in the event of nuclear attack.
Mr. Stans highly recommended approval since the paper contained all the needed safegards.
Mr. McElroy suggested that the paper be amended to eliminate the requirement that all the agencies approve each disposal action—something that would be pretty cumbersome. The President said that concurrence rather that approval would be satisfactory but that specific agreement seemed to be needed. Mr. Flemming concurred with the President’s view.
Dr. Flemming inquired whether Sec. Mitchell should be consulted because of the relationship of any strike. Sec. Mitchell indicated that satisfactory arrangements for this were already established.
The paper was approved.
[Omitted here is discussion of other subjects.]
Copy to:
Mrs. Whitman (2)
Mr. Minnich
- Source: Approval of policy on stockpiling. Confidential. Extracts—4 pp. Eisenhower Library, Whitman File, Cabinet Series.↩