Foreign Relations of the United States, 1950–1955, The Intelligence Community, 1950–1955

116. Memorandum From the Executive Secretary of the National Security Council (Lay) to the National Security Council¹

Washington, June 12, 1952.

SUBJECT

• Organized and Coordinated Program of Covert Preclusive Buying

REFERENCES

A.

Memo for NSC from Acting Executive Secretary, same subject, dated February 11, 1952²

B.

NSC 104/2, pars. 11 and 12³

C.

Memos for NSC from Executive Secretary, subject, “Assignment of Responsibilities for Economic Defense,” dated November 7, 1951 and January 25, 1952⁴

Pursuant to Reference A, the Senior NSC Staff requested the Economic Defense Advisory Committee (formerly the Mutual Trade Security Advisory Committee) to prepare a study of the desirability and feasibility of the initiation of a preclusive buying program. The enclosed report⁵ was prepared by the Economic Defense Advisory Committee in response to this request; was submitted through the Department of State; and was discussed by the Senior NSC Staff which concurred in it with amendments incorporated therein. The Senior NSC Staff considered that the recommendations in paragraph 10 of the enclosure are in accordance with existing policy contained in NSC 104/2, and that action by the National Security Council on these recommendations is, therefore, not required.

In the light of the above, the Secretary of State, pursuant to Reference C, is directing the implementation of the recommendations contained in the enclosure through the Economic Defense Advisory Committee. The enclosed report is accordingly circulated herewith for the information of the National Security Council to indicate the action which is being taken on the basis of the memorandum of the Chairman, National Security Resources Board, in Reference A.

James S. Lay, Jr.

1. Source: Truman Library, Papers of Harry S. Truman, President’s Secretary’s Files. Secret; Security Information. Copies were sent to the Secretary of the Treasury, Secretary of Commerce, Acting Director of Defense Mobilization, and the Director of the Bureau of the Budget.
2. Not printed. (Ibid.)
3. For NSC 104/2, see Foreign Relations, 1951, vol. I, pp. 1059–1064.
4. The November 7, 1951, memorandum circulated to the National Security Council a November 6 memorandum on the subject from President Truman, which is printed ibid., p. 1214. The January 25 memorandum is in National Archives, RG 59, Central Files 1950–54, 460.509/1–2552.
5. Not printed.