Foreign Relations of the United States, 1958–1960, East Asia-Pacific Region; Cambodia; Laos, Volume XVI

2. Memorandum of Discussion at the 353d Meeting of the National Security Council, Washington, January 30, 1958¹

Washington, January 30, 1958

[Here follow a paragraph listing the participants at the meeting and items 1–3.]

4. Asian Regional Economic Development and Cooperation (NSC 5506; NSC Action No. 1506; NSC 5602/1; NSC 5707/8; Memo for NSC from Executive Secretary, same subject, dated January 22, 1958)²

Mr. Cutler briefed the Council, stating that he was introducing the subject in the absence of Mr. Randall. (A copy of Mr. Cutler’s briefing note is filed in the minutes of the meeting, and another is attached to this memorandum.)³

The National Security Council:⁴

a. Noted:

(1) The Report of the Committee on Asian Regional Economic Development and Cooperation, and the CFEP action thereon, transmitted by the reference memorandum of January 22, 1958.

(2) That the Operations Coordinating Board is to serve as the coordinating agency for implementation of the summary findings and recommendations of the Report and for the programs and actions resulting from further consideration of the Report by the appropriate Executive departments and agencies; and will prepare periodic reports on such implementation and on such programs and actions for the information of the National Security Council and the Council on Foreign Economic Policy.

b. Concurred in the recommendation of the Council on Foreign Economic Policy, prepared pursuant to NSC Action No. 1506–b and transmitted by the reference memorandum of January 22, 1958, that NSC 5506 be cancelled; and noted concurrence of the Joint Chiefs of Staff in this recommendation.

Note: The actions in a and b above, as approved by the President, subsequently transmitted to the CFEP and OCB for information. The action in b above also transmitted to all holders of NSC 5506.

[Here follows item 5.]

Marion W. Boggs

Attachment

Briefing Note Prepared for the President’s Special Assistant for National Security Affairs (Cutler)⁵

Washington, January 28, 1958.

ASIAN REGIONAL ECONOMIC DEVELOPMENT AND COOPERATION (JANUARY 31, 1958)

1. Following the end of the war in Indochina, the Council adopted a new policy on the Far East (NSC 5429/2 of 8/20/54,⁶ superseded by NSC 5429/5 of 12/22/54)⁷ which included a provision that the U.S. should “encourage the prompt organization of an economic grouping … of free Asian states … “⁸ and that through this grouping or otherwise the U.S. should provide substantial economic and technical aid “to accelerate the present slow rates of economic growth and to give the peoples in this area a sense of present progress and future hope” which was then lacking.

2. The Council established (Oct 6/54)⁹ a special committee to prepare courses of action to carry out these policies. The resulting report, which was approved by the CFEP and adopted by the NSC as NSC 5506 (2/5/55) was of as much significance for what it rejected as for what it accepted.¹⁰ It provided for strengthening the existing Colombo plan organization and for a modest increase in U.S. aid, but rejected establishment of a new regional economic grouping and of a greatly expanded U.S. aid program.

3. On January 24, 1956 the Council requested the CFEP to review this policy in the light of a revised basic national security policy then in preparation and to report back its findings. The CFEP review was subsequently postponed because of the several reviews of the Mutual Security program which were initiated in 1956.

4. Last spring Mr. Randall also established a new CFEP committee to prepare a report on Asian regional economic development and cooperation. The Summary Findings and Recommendations in this Committee’s report, which has been circulated to the Council for its information, were approved by the CFEP after extensive review by the agencies. The CFEP referred the entire report, including its more detailed recommendations, to the agencies for their consideration in developing suitable regional programs and actions. The OCB has agreed to serve as coordinator for this further work by the agencies and will prepare regular progress reports for the information of the NSC and the CFEP.

5. Among the more important of the Summary Recommendations of this report are the following:

a. That the U.S. should expand its efforts to foster Asian regional economic cooperation, working through existing regional organizations and with countries individually and in small groups and should not seek establishment of any new regional organizations.

b. That consideration should be given to seeking Asian support for basic resource surveys, and, in particular, that a group of U.S. specialists should study the development of iron and steel in Asia.

c. That the U.S. should support expanded regional technical cooperation and give priority to expanding present efforts in the English language field in Asia.

6. The CFEP now recommends that NSC 5506 be cancelled on the grounds:

a. First, that though NSC 5506 had a certain historical significance in answering the question of whether the U.S. should inaugurate a large-scale regional assistance program in Asia, the new report of the CFEP committee reflects more accurately current views in the government on Asian regional development.

b. And second, that many of the principles and objectives in NSC 5506 have been superseded by more ample policy guidance in the Basic National Security Policies which were adopted subsequently.

7. The J–C–GS concur in the recommended cancellation of NSC 5506.¹¹

1. Source: Eisenhower Library, Whitman File, NSC Records. Top Secret; Eyes Only. Prepared by Boggs on January 31.
2. See footnote 3, supra.
3. Cutler’s briefing note is printed below. The minutes of all National Security Council meetings are in the National Archives and Records Administration, RG 273, Records of the National Security Council, Official Meeting Minutes File.
4. Paragraphs a and b and the Note that follows constitute NSC Action No. 1853. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)
5. Confidential. Possibly drafted by Robert H. Johnson, a Special Staff member of the NSC.
6. Entitled “Review of U.S. Policy in the Far East;” Foreign Relations, 1952–1954, vol. xii, Part 1, pp. 769–777.
7. Entitled “Current U.S. Policy Toward the Far East;” ibid., pp. 1062–1072.
8. Ellipses in the source text.
9. See Foreign Relations, 1952–1954, vol. xii, Part 1, pp. 927–932.
10. In the source text, the words “was of as much significance for what it rejected as for what it accepted” have been crossed through.
11. In the source text, numbered paragraph 7 is handwritten.