296. Memorandum from Forrestal to Bundy, July 191

[Facsimile Page 1]

Although the limits of Kaysen’s empire, like that of Darius were undefined and expanding, Bob Komer and I have attempted to delimit them for the purpose of establishing our condominium.

So far as we know, Carl operated in the following general areas:

International Economic Affairs

International liquidity problems (F)
Balance of payments (F)
Trade (X)

Planning

Strategic military planning (K)
State Department policy planning (K)
Long range economic planning (CEA) (X)

Budget Review

Defense (F) (K)
CIA (F)

Arms and Arms Control

Disarmament (Johnson)
Weapons systems (Johnson)
AEC Tests (Johnson)

Regional

Africa (Brubeck)
Okinawa (F)

Although there is no way of replacing from your present staff Carl’s professional expertise in economic matters, we think that a [Facsimile Page 2] very informal reshuffling of functions will give you coverage at least of his major responsibilities. In the two areas marked “X”, you may want to use someone from the CEA.

Bob feels that with the help he is getting from Harold Saunders on his regional responsibilities (NEA), he can take on the functions marked “K” above. I think that if we can find some junior to help on my regional responsibilities (FE), I could take on the additional responsibilities marked “F” above.

[Typeset Page 1267]

Since I do not have Carl’s professional experience, my attempts to keep you abreast of the operations of the Treasury in international matters will have to be carried out in a somewhat different fashion. The result will be, I am afraid, that you will not have on your staff the strong kind of advocate for broad action in the balance of payments and international liquidity areas that you had in Carl. Since my background is more in line with that of Doug Dillon, it will be necessary to call more upon the staff of the Council to get the proper kind of balance.

Both Bob and I have over-lapping personal interests in getting into Defense Department matters; but I think that these can be sorted out in practical terms, given his talents on the planning and strategy side and my own proclivity for getting involved in the nuts and bolts.

Between us it is going to be more than we can do to fill Carl’s shoes; but I think we can carry the operation along, at least well enough to protect you from too many surprises.

Incidentally, as a candidate for the Far East junior staff member, I would suggest that you consider Jim Thompson, who is now a special assistant to Roger Hilsman. He has a good academic background in Asian Affairs, and although he used to work for Chet Bowles, I think he is pliable enough to fit into our kind of operation. But you may have better ideas.

Bob has seen this and approves.

Michael V. Forrestal
  1. Reassignment of Kaysen’s portfolio. No classification marking. 2 pp. Kennedy Library, National Security Files, Meetings and Memoranda Series, Staff Memoranda, Carl Kaysen.