264. Memorandum of Discussion at a Department of State-Joint Chiefs of Staff Meeting0

[Here follow a list of participants—18 people attended for the Joint Chiefs of Staff and Department of Defense, 8 for the Department of State, and General Marshall Carter for the Central Intelligence Agency—a table of contents, and discussion of item I on Vietnam, which is printed in Foreign Relations, 1961–1963, volume II, pages 459-460.]

II. Korea

Admiral Anderson said that the JCS would like to have a run down on the latest developments in Korea. Mr. Johnson then asked Mr. Yager to speak to cover this item. Mr. Yager said that the situation in Korea is a disturbing one. The present military government has the attributes of efficiency and is attempting progressive modernization. However, there are signs that the leaders are losing self-confidence. They are worried about their lack of effective progress and cliques are beginning to develop among the ruling classes. The ROKCIA is not acting properly; it is becoming involved in the economic field, and there are persistent reports that it is engaged in massive financial corruption. We had hoped to receive an overall situation report from Ambassador Berger by today, but he has deferred submitting his report in view of the fast moving situation. We hope to have this report in the near future.1

[Page 576]

Mr. Johnson emphasized that the recent currency conversion and reform was undertaken without our knowledge and that this is a bad development. The ROK leaders knew that we would disapprove the proposal if they had discussed it with us in advance. We are still not clear on many of the detailed aspects of the new program. Mr. Yager said that there probably will be a heavy levy against capitalists and wealthy persons with a resultant harm to business and a slow down of capital investment and expansion. Mr. Johnson said that if the present trend continues with respect to our relations with the Korean Government, we may have to take a hard look at our policy vis-a-vis the Park Government. In response to Admiral Anderson’s question, Mr. Johnson indicated that he was not prepared to say just what such a policy review would entail. Mr. Johnson also informed Admiral Anderson that the message to Ambassador Berger concerning the Korean SOFA negotiations had been dispatched (with information copies to DoD and JCS).2

[Here follows discussion unrelated to Korea.]

  1. Source: Department of State, S/P Files: Lot 69 D 121, State-JCS Minutes. Top Secret. A note on the cover sheet indicates the memorandum was a Department of State draft, not cleared with the Department of Defense.
  2. The assessment was received in telegram 1312 from Seoul, June 19. In it the Country Team stated that the present situation in Korea was best described as a “power and policy struggle which has created a condition of instability in top leadership and tension in the country.” The resignation of President Song Yo-chan, infighting within the SCNR, coup plotting outside and possibly inside the government, massive student demonstrations, stock market scandals, and corruption all contributed to the situation, but the Country Team considered KCIA Director Kim Chong-pil and his organization most responsible for the instability. The Country Team still considered Pak the dominant figure and believed Kim Chong-pil’s influence could be diluted with the proper U.S. encouragement. (Ibid., Central Files, 795B.00/6-1962)
  3. See footnote 1, Document 263.