334. Memorandum From the Under Secretary of State for Economic Affairs (Dillon) to Acting Secretary of State Herter0
SUBJECT
- IRBM’s for Greece and Turkey
You will recall that the IRBM program for Greece and Turkey was held up pending clarification of the financial implications involved. Defense has come up with a firm figure of about $225 million for the two squadrons, the only variable in this figure being the cost of construction which we estimate to be somewhat higher than the figure presently used by Defense. This could lead to an increase in the total gross to somewhere around $250 million. Defense has also worked out a schedule whereby these costs would be payable by the Mutual Security Program over about a four year period beginning next year. We also obtained final cost figures from Defense on the IRBMs in England and Italy.
The combined impact of the remaining payments for IRBMs in Italy and the U.K. and the first increment of construction costs in Turkey and Greece which would have to be met next year indicates a need for $53 million for IRBMs in the FY 1960 Mutual Security Program. There were no funds provided for these IRBMs in the Military Assistance Program of $1.6 billion submitted to the Congress.
In agreement with Defense I have held up State concurrence in the instruction to Norstad to commence negotiations with the Turks until [Page 799] such time as a decision is taken on the Supplemental recommended by the Draper Committee. The $53 million for IRBMs is included in the list of items submitted by Defense for this Supplemental. I felt it important vis-à-vis the Congressional presentation not to undertake this extra expenditure for FY 1960 until we have some indication that the funds would be available.
We are now faced with the possibility that there will be no Supplemental request by the President. Should the joint State–Defense recommendation for a Supplemental be turned down, Defense would still very much want to go ahead with the IRBMs in Greece and Turkey, and I think we should make every effort to meet their request. My specific recommendation is that if in talking with the President regarding a Supplemental, it appears that the decision will be against the Supplemental that you specifically mention the IRBM problem in Greece and Turkey and the need for continuing funds for this program. You might point out that it will be impossible to finance this program out of Mutual Security without eliminating most other modernization requirements for NATO, unless future levels of Military Assistance are considerably higher than this year’s request for $1.6 billion. I would hope that you would then recommend to the President that we authorize Norstad to go ahead with the program, realizing this budgetary implication for the future. This would put us in a better position when the FY 1961 Military Assistance Program comes around. As soon as the decision is taken on the Supplemental I would recommend that you authorize Defense to allow Norstad to initiate negotiations with the Turks immediately.
I think you are aware that NEA and S/P are not very happy politically about the decision to go ahead with the IRBM’s in Turkey and Greece,1 but that after exhaustive consideration of the pros and cons of the matter, both Mr. Murphy and I came to the conclusion that we should go ahead as soon as the financing problem is straightened out.
In case anything comes up on this matter Mr. Bell is fully familiar with every aspect of it and I suggest you call on him. It may be that Defense will want to jump the gun, but my feeling is that we should wait the few days that are required before the decision is reached on the Draper Report.
- Source: Eisenhower Library, Herter Papers, Memoranda for Record. Secret.↩
- At the February 3 Secretary’s Staff Meeting, the
question of IRBMs for Greece and Turkey was discussed:
“Mr. Murphy pointed out that NEA and S/P are opposed to the introduction of IRMBs into Greece and Turkey. Consultation with Defense will be necessary and there may be a strong reaction there.
“[7 lines of source text not declassified]” (Department of State, Secretary’s Staff Meetings: Lot 63 D 75)
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