Foreign Relations of the United States, 1961–1963, Volumes VII, VIII, IX, Arms Control; National Security Policy; Foreign Economic Policy, Microfiche Supplement

332. Telephone Conversation between Kaysen and Ball, July 9¹

July 9, 1963

CK: Chris would like to have a meeting with the President before he goes off. I was sure you and Mike should be there, but Mike thinks the center of our problem will be agriculture. What do you think, should Orville be along?

GB: It would be a good idea to have Orville there.

CK: OK, I’ll so arrange it and let you know.

GB: By the way, how much do you know about the plans for the balance of payments announcement next week?

CK: I know this: That the President told Walter that he’s going to hold off until two weeks. He’s not going to make the announcement next week. That was yesterday. Whether anybody’s told Doug this, I don’t know.

GB: No, I was just over talking to Doug. Let me just say something to you which don’t attribute to me or anything. One thing I think we should never do is to make a big announcement about this troop redeployment thing in the context of a balance of payment statement. Particularly, we can’t do it at a moment it’s schedule now when Averell is in the Kremlin.

CK: This is mad. You mean this is all in Doug’s statement?

GB: Yes, I’m sure.

CK: This is absolute madness.

GB: If we want to follow a program of moving troops around, it should be done fairly quietly and certainly with no reference to balance of payments. This is ridiculous.

CK: Yes. Didn’t you say to Doug in the flatest terms that this couldn’t be done.

GB: I didn’t, no. He just threw this thing in at the last minute and I didn’t comment.

CK: I would suggest you say to Doug you want the statement for comment. You understand the President is going to wait on it and it seems to me this is the kind of thing which Dean would simply write a little note, saying it’s impossible.

GB: Yes. I think we have to hit this one head-on. The problem we’re in, you see, is that the deal that’s been made between Dillon and McNamara, I am sure, is that Bob says he can’t get any of these things done unless he tells them under Presidential mandate to do it for balance of payments reason. Therefore, he wants it announced as a part of the balance of payments program. Dillon is telling me now unless we put this in the Hill is going to make us do it. This is utter garbage. All this would do is add cumulus to get the boys home. I think we get out a balance of payments statement which has some very good things in it. He certainly has come a long way along the route you and I would like.

CK: I’d like to see it.

GB: Well, let him tell you about it.

CK: Sure.

GB: But this troop thing has got to be out of there.

CK: Right.

GB: Otherwise, we’re going to be negotiating from weakness and we’re going to demoralize the Alliance.

CK: This is perfectly clear it’s mad.

GB: Now, the question is how are we going to mobilize Harriman when he can be useful. I don’t want to get him into this act yet.

CK: No. You see the real thing is, I think, you have to nail this standstill down. The President and Walter talked about it and I was there yesterday. Walter urged that he make no statement for two more weeks; that he hold it up so that he can get into the discussion; he’s going to Paris and what’s the hurry? I think Walter’s perfectly right. I think you can always get a procedural handle, so why don’t you start out this way?

GB: I think maybe what I should do is to give Doug a little memorandum of my second thoughts on this thing. And just make the record that we’re not taking this one lying down.

CK: Right. And I think you ought to say you understand that there has been this holdup. You see the President might not be able to hold Doug to it if Doug doesn’t raise the issue. But if Doug raises the issue, it will come back to him.

GB: I’d just as soon not say I know about the holdup.

CK: You don’t think so?

GB: No. Just say to Doug this is my feelings.

CK: Maybe I ought to call Doug about the holdup.

GB: All right. But don’t indicate that you know anything about . . . that I talked to you.

CK: OK.

1. Proposed Presidential announcement on balance of payments. No classification marking. 3 pp. Kennedy Library, Ball Papers, Ball Telephone Conversations, Balance of Payments, 1963, Box 1.