363. Telegram 255 to Moscow, July 191

[Facsimile Page 1]

For Harriman. FYI Only.

1. With reference President’s July 18 balance of payments message, Defense proposals include some force reduction in Europe and Far East, principally in fighter squadrons and B–47 decreases; some reduction of LOC facilities in Europe; reduction in MAP/OSP; and miscellaneous other adjustments. No combat ground force reduction involved in either Far East or Europe.

2. Effort is being made to avoid treating proposals as a package to avoid leaving impression that US is making major withdrawals from its overseas commitments. (In actual fact, Department’s view is that reductions proposed by Defense do not represent major withdrawals and are politically manageable. Nevertheless, dollar magnitude of adjustments being made, which total slightly less than $400 million together with its world-wide distribution, could lead to interpretation by news media, or others, that major withdrawals were contemplated.)

3. Actual implementation of individual programs within total proposal will take place over a period of several months, some of the [Facsimile Page 2] actions not being completed until 1964, and in a few cases until 1965. However, exact timing on implementation of programs, including timing on approach to governments involved, is awaiting receipt from DOD details of individual programs.

4. You should also be aware that DOD has been requested prepare for consideration within ninety days an additional package of balance of payments reductions. It will probably be necessary for this package [Typeset Page 1560] to contain proposals for more far-reaching force reductions since availability of relatively marginal items has for most part been exhausted in first proposal.

5. If you desire further details, will be glad provide.

END.

Rusk
  1. U.S. troop reductions in Europe. Secret. 2 pp. Department of State, Central Files, FN 12 US.