320. Memorandum of Discussion at the 447th Meeting of the National Security Council0

[Here follow a paragraph listing the participants at the meeting and agenda items 1 and 2.]

3. Significant World Developments Affecting U.S. Security

[Here follows discussion of unrelated matters.]

Mr. Dulles believed the political situation in Korea would remain unsettled and that Huh Chung might find it difficult to maintain the orderly process of government with new elections approaching in July. A great deal of muckraking was going on and purges may be in preparation. A controversy was in progress between Huh Chung and Defense Minister Yi. The National Assembly is making an effort to meet a popular desire for reform. Mr. Dulles then referred to [4-1/2 lines of source text not declassified].1 Mr. Dulles noted that in North Korea there had been a stand-down of certain armed forces. This stand-down, which ended in June, had not been satisfactorily explained, but apparently it did not presage any unusual development such as an attack on the Republic of Korea.

[Here follows discussion of unrelated matters.]

Mr. Dillon said the Republic of Korea would debate its new constitution1 on June 10. He believed the constitution would be adopted. Elections could be held 45 days after adoption of the constitution. Mr. Dillon felt that we must wait until the elections had taken place to form a firm idea of the political future in Korea. The caretaker government was cooperating with us, the situation in the country was reasonably good, and the President’s visit should be a good one, especially if the Assembly acts on the constitution first. The President said that except for his visit to Taiwan, his trip appeared to be an adventure into the unknown.

Mr. Gray noted that the [2-1/2 lines of source text not declassified]. General Twining said he had just received a message2 from General Magruder reporting that the ROK government was about to dismiss all general officers from the army. This would be a very serious step and General Twining hoped that General Magruder would be able to forestall it.

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Mr. Gray asked whether any change in U.S. economic assistance to Korea was contemplated. Mr. Dillon said no dramatic change was contemplated. There would be a reduction of about $10 million in economic aid in next year’s program; last year the reduction amounted to $22 million. A change in the exchange rate would permit a larger reduction. Mr. Dillon thought that the publicity given certain scandals in the Korean Government had led some observers to conclude that we were providing too much aid to Korea. While our aid was under investigation, Mr. Dillon was of the opinion that the projects for which assistance was provided were sound and worthwhile projects, beneficial to the country, even though some of them were used for political purposes in rewarding Rhee’s adherents.

The President said that during the last few months there had been an epidemic of difficulties–Cuba, Korea, Laos, Vietnam, Turkey, and Indonesia. It was discouraging to try to help various countries achieve stability and then find that the countries which received the most assistance became the most unstable. Mr. Dillon believed that education and improvement in the standard of living would not necessarily produce conservatism or stability.

[Here follows discussion of unrelated topics.]

Marion W. Boggs
  1. Source: Eisenhower Library, Whitman File, NSC Records. Top Secret. Drafted on June 15 by Boggs.
  2. See footnote 4, Document 318.
  3. See footnote 4, Document 318.
  4. Not found.