83. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Robertson) to the Acting Secretary of State 1

SUBJECT

  • Cambodia—Defense Support Aid Level FY 1959

I am disturbed by the recent decision fixing the firm Defense Support aid level for Cambodia at $20 million, with an additional $2.5 million indicated only as a probability. I understand that this decision reflected a view that all efforts should be made to induce the Cambodians to accept a reduction in U.S. support of their military budget and to increase their own contribution. I feel that even to discuss such a figure with the Cambodians would arouse the gravest apprehensions on their part which would only be partly alleviated by a subsequent increase of the figure to $22.5 million.

During State–ICA discussions on FY 1959 aid levels, ICA took the position that $27.5 million would be needed to carry on existing programs, including the completion of the port highway. This figure assumed a 10 per cent reduction in the U.S. contribution to the military budget. Only $25 million, however, had been requested from Congress. In view of Cambodia’s recognition of Communist China, FE considered that the pro rata 10 per cent cut in Defense Support appropriations should be imposed on Cambodia, and consequently proposed a level of $22.5 million. This level itself will definitely force a further reduction in U.S. support of the military. On the other hand, the $20 million dollar level would exceed the pro rata Congressional cut, would create almost impossible programming difficulties, and could only be regarded as punitive by the Cambodians. I understand that Defense, while prepared to accept the $22.5 million figure, would have serious reservations about the lower figure.

It is expected that aid may be discussed during Prince Sihanouk’s visit to Washington next week. A punitive aid level is likely to vitiate our objective of making his visit contribute positively to improved relations, and could give rise to some extremely unpleasant exchanges. There is also the possibility that Cambodia might seek additional aid from the Communist bloc as an offset to the U.S. reduction.

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Recommendation

That the firm FY 1959 Defense Support aid level for Cambodia be increased from $20 million to $22.5 million.2

  1. Source: Department of State, Central Files, 751H.5–MSP/9–2658. Confidential. Drafted by Robert G. Cleveland and cleared by SEA, W/MSC, and FE. In a covering memorandum for Executive Secretary Fisher Howe, Palmer asked for quick action on this memorandum in light of Sihanouk’s visit to Washington next week. Howe should inform Herter that Secretary Dulles had expressed the view that the United States might use the lower aid level figure to negotiate lower military aid with the Cambodians. The covering memorandum is included in the microfiche supplement.
  2. Herter initialed his approval of the recommendation.