103. Circular Telegram From the Department of State to Certain Diplomatic Missions1

138. Press recently reported certain remarks by Senator Fulbright re aid to SEA and Korea.2 For your guidance in handling inquiries these remarks were part of repeated questioning by Senator Fulbright [Page 242] to make certain new Administration has fully reviewed principles and objectives underlying military and economic aid to SEA and to Korea and that proposals new aid program are based on fresh appraisal as distinguished from carrying out old policies from inertia only. Fulbright asked Secretary to return to Committee for full discussion this subject. Secretary did so and provided vigorous assertion of importance continued assistance to SEA and Korea based on re-examination underlying policies and objectives. Secretary firmly supported continuance of fundamental US policies in area and of full amount of funds requested. Because Secretary’s testimony was given at special meeting and dealt with Berlin and many other problems none of it was printed. Therefore the responses of Executive Branch firmly supporting the SEA and FE programs will not appear in printed hearings. However, upshot of this questioning is that after re-examination fundamental policies are continued.

FYI. Fulbright also made point aid alone is not solution to SEA or FE problems. Fulbright requested Dept memorandum indicating re-examination. Dept prepared and submitted memorandum underscoring importance of assistance to SEA for protection independence against communist pressures from without and within.3 Tone of Fulbright’s questions suggests real concern about possible over-commitment of US and it is not clear that Executive answers completely satisfied him. However rest of Committee seems in accord with basic policies. End FYI.

Pouching text hearings and copy Dept memo.4

Rusk
  1. Source: Department of State, Central Files, 790.5-MSP/7-2261. Confidential. Drafted by Claxton (H) and Swezey (FE/SEA), cleared with S/S and with Usher (FE/ SEA) and Cleveland (FE/SEA), initialed by Peterson (FE) for the Secretary, and sent to Bangkok, CINCPAC for PolAd, Manila, Phnom Penh, Djakarta, Saigon, Seoul, Taipei, and Vientiane.
  2. Apparently a reference to Fulbright’s remarks during testimony by Secretary Rusk before the Senate Foreign Relations Committee on July 6, a transcript of which is in the National Archives, RG 46, Senate Foreign Relations Committee Records, and which is printed in Executive Sessions of the Senate Foreign Relations Committee (Historical Series), Vol. XIII, Part 2 (Washington, 1984), pp. 327-376.
  3. Apparently a reference to the paper prepared by the Policy Planning Council entitled “U.S. Security Alternatives in the Far East,” an early draft of which was dated June 23. A copy of this paper, with a note on the table of contents page to the effect that the views of the Policy Planning Council were “advisory” and did not necessarily represent approved policy and with a cover sheet dating the paper July 24, and designating it PPC 61-4, was sent to U. Alexis Johnson by McGhee under cover of a note of July 31. McGhee explained that the attached paper had been approved by McConaughy and the Secretary and had been sent to Senator Fulbright on July 21, in response to Fulbright’s request during the course of Senate Foreign Relations Committee hearings on foreign aid. (Department of State, S/S-NSC Files: Lot 70 D 265)
  4. In telegram 128 from Saigon, July 27, Nolting reported that Fulbright’s remarks as recently reported in the press caused President Diem and other Vietnamese officials “great concern.” Diem voiced his concern in a meeting with Nolting on July 24. Nolting told the Department that circular telegram 138 helped him place Fulbright’s remarks in some perspective for Diem, but that he had been handicapped by not having the text of the Senator’s remarks nor specific information on the press coverage of the remarks. (Ibid., Central Files, 790.5-MSP/7-2761)