Foreign Relations of the United States, 1958–1960, Western European Integration and Security, Canada, Volume VII, Part 1

262. Editorial Note

The National Security Council, at its 435th meeting on February 18 and at its 454th meeting on August 1, discussed the subject, “Commitments for Grant Military Assistance to Certain Free World Nations With Well-Developed Economies.” These discussions followed consideration of NSC 5916, “Commitments for Grant Military Assistance to Certain Free World Nations With Well-Developed Economies,” at the 427th NSC meeting on December 3, 1959. A draft of NSC 5916 and the memorandum of discussion at the NSC meeting are printed in volume IV, pages 467–468 and 472–482. Subsequently, on January 30, Secretary of State Herter met with Secretary of Defense Gates, as directed under NSC Action No. 2158–b agreed to at the December 3, 1959, meeting, to develop guidelines on grant assistance for specific well-developed nations. A memorandum of Herter’s conversation with Gates on this matter, prepared by Herter, noted among other things that “we agreed that Defense and State would take identically the same position should the matter come before the President for resolution.” (Eisenhower Library, Herter Papers, Miscellaneous Memoranda of Conversation)

The first periodic report by the Departments of State and Defense, entitled “Commitments for Grant Military Assistance to Certain Free World Nations With Well-Developed Economies,” February 15, was transmitted to the NSC in a memorandum from Executive Secretary Lay on February 17. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, NSC 5916) Earlier, a draft of this report was transmitted in Topol 1443 to Paris, January 29, for comments and recommendations. (ibid., Central Files, 700.5–MSP/1–2960) The first report was also summarized and discussed at the NSC meeting on February 18. Discussion focused on paragraph 2 of the report, which called for no new commitments for provision of military equipment on a grant basis to the United Kingdom, Germany, France, Austria, and Luxembourg, except in certain instances where U.S. interests might otherwise require. Herter defended this “except clause,” citing the need for flexibility. He noted, for instance, differences among European nations over second generation IRBMs in Europe and the possibility that the European nations would agree to accept them only on a shared cost basis, which would not be permitted if the “except clause” was eliminated. Others, especially Under Secretary of the Treasury Fred C. Scribner, Jr., argued that discussions with European nations on financing IRBMs did not involve a commitment and the Department of State, if necessary, could come back to the NSC for decision. NSC Action No. 2187, which the President approved on February 20, revised the second sentence of the second paragraph of the State–Defense report to read as follows:

“As a result thereof steps have been taken to assure that, except in specific instances where the President may determine that U.S. interests otherwise require, no new commitments for the provision of military equipment on a grant basis will be offered to these countries.” (ibid., S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)

On August 1, the National Security Council considered a memorandum from Secretaries Herter and Gates to the President, July 8, on the same subject. This memorandum was transmitted by Lay to the NSC on July 20. (ibid., NSC 5916) Summarized at the NSC meeting by Under Secretary of State C. Douglas Dillon, it covered the Netherlands, Italy, Portugal, Belgium, and Japan. Following a country-by-country analysis of the financial and political problems involved, Dillon recommended that the NSC approve proceeding in fiscal year 1961 with the programs of military assistance to these five countries substantially as presented to and endorsed by Congress, subject to such reductions as might be required by congressional reduction of the total military assistance appropriations. He said that he would be ready to present the Mutual Security Program for fiscal year 1962 for full NSC discussion in about 6 weeks.

Secretary of the Treasury Robert B. Anderson opposed Dillon’s recommendation, saying that the five countries were financially able to pay for their military equipment and that the U.S. economic situation, especially its balance-of-payments problem and other commitments, required the U.S. Government to give grant military assistance to these nations a low priority. As summarized in the memorandum of discussion, prepared by Marion W. Boggs, President Eisenhower then remarked: “grant military assistance was a difficult problem. His feelings were those of Secretary Anderson but he believed we had got ourselves committed to such an extent that we could not completely eliminate military assistance at this time. He had been struggling with this question for fourteen years.” (Eisenhower Library, Whitman File, NSC Records)

After further discussion, the NSC proposed NSC Action No. 2275, which the President approved on August 12. The first paragraph noted the discussion in light of the State–Defense report. Subsequent paragraphs read as follows:

• “b. Concurred in the recommendation of the above-mentioned report that steady political pressure should be maintained on the Governments of the Netherlands, Italy, Portugal, Belgium and Japan, both bilaterally and multilaterally, to induce them to increase the proportion of their resources devoted to defense in view of the ultimate objective that new commitments for the provision of military equipment on a grant basis should not be offered to nations which are financially able to pay for such equipment.
• “c. Noted the President’s authorization to proceed with the programs of military assistance to the Netherlands, Italy, Portugal, Belgium and Japan for FY 1961 substantially as presented to and endorsed by the Congress, subject to such reductions as may be required by Congressional reduction of the total military assistance appropriations.
• “d. Noted the President’s directive that the Governments of the Netherlands and Italy should be informed at an early date that they cannot in the future look forward to the level of grant military assistance they have received in the past; that the Governments of Belgium and Japan should be informed that they must anticipate an eventual decrease in the level of U.S. grant military assistance; and that decisions as to the future grant military assistance program for each country should be taken following notification to that country.
• “e. Noted that the Council at an early date will give further consideration to grant military assistance for the Netherlands, Italy, Portugal, Belgium and Japan in connection with the forthcoming report on long-term military assistance planning, including the levels projected therein for FY 1962.” (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)

The memorandum of discussion concerning this agenda item and other documentation on long-term military assistance planning is printed in volume IV, pages 504 ff.