268. Telegram From the Embassy in Korea to the Department of State0
370. At my suggestion Draper and Hull1 made farewell call on President Feb. 10. With great tact Draper cautioned President massive U.S. aid could not continue indefinitely and first emphasis must now be placed on developing export industries and export markets. He asserted prelude this step must be establishment realistic exchange rate permitting Korean goods and services compete in world market. While President obviously did not welcome this advice, he listened attentively and respectfully. Without Embassy foreknowledge General Hull then introduced thesis that over two to three-year period further reduction active divisions armed forces might be accomplished without sacrificing military strength if number of reserve divisions increased correspondingly and complete equipment therefore provided plus intensified training to insure combat readiness. Minister Defense frankly opposed this suggestion though perhaps in self-defense since he roundly criticized by President for acquiescence last reduction two active divisions. In discussion which lasted nearly hour and half President agreed to consider these proposals carefully. Believed here Draper Committee visit has had wholesome impact.
- Source: Department of State, Central Files, 795B.5–MSP/2–1159. Confidential; Priority; Limited Distribution.↩
- From January 30 to February 15 the Subcommittee for the Far East of the President’s Committee To Study the U.S. Military Assistance Program visited Japan, Korea, and Taiwan and studied the programs in each country. The subcommittee was headed by William H. Draper, who was accompanied by General John E. Hull as military adviser, and a staff of five. The Draper subcommittee visited Korea February 6–11. In presentations made to the committee, Korean officials requested defense support aid of $250 million annually “for next few years,” and asked that a “stepped up effort” be made to remedy the equipment deficiencies of Korean forces, while implying that Korean force levels should not be further reduced. (Despatch 452 from Seoul, February 24; ibid., 795B.5–MSP/2–2459) See Supplement. At the conclusion of the trip, the subcommittee submitted a report to the overall committee. (Eisenhower Library, White House Office Files, Project Clean Up) See Supplement. The subcommittee concluded that a long-range economic development plan for Korea should be prepared and implemented, and that, as the Korean armed forces were provided with modern equipment, a number of active divisions could be replaced by reserve divisions.↩