77. Memorandum of Conference With President Eisenhower0
OTHERS PRESENT
- Secretary McElroy, General Goodpaster
The President called Mr. McElroy in following the NSC meeting and told him he is disturbed by some of the implications of cuts that may be [Page 332] forced by the budget. He commented that he has been fighting hard to get our forces in Europe down to perhaps two divisions. But for us, without warning, to cut our forces for budgetary reasons would be very bad in its impact on forthcoming negotiations. Mr. McElroy agreed. The President said this must therefore be very skillfully done, and that we may have to exceed somewhat the figures he and Mr. McElroy have had in mind. His real aim is to get our programs trimmed down to what we can carry forward, with no more than a slight rise in the future. He commented how very costly these programs are, mentioning particularly the $2-3/4 billion estimate for AEC, which he strongly questions.
The President said he thought we have gone too far in an atomic powered surface fleet. We are already committed to two cruisers and one aircraft carrier according to Mr. McElroy. The President doubted whether we should go any further.
He said he thought it now requires some very close and searching study, to cut expenses everywhere else in government, in order to provide for a little “bulge” in Defense if it has to come. At this time he felt we could not weaken the Western position when we are going into negotiations. He observed the Chiefs appear to appreciate the need for a sound economy, from reports he is getting.
The President said that some decisions may be needed in early December after he has gone on his trip, and cannot preside over meetings. He thought he would ask the Vice President to preside over Cabinet, NSC and such meetings and would make the Secretary of the Treasury the head of a Committee to screen the budget. There is need for a carefully worked out position which all can support before the Congress.
The President said what he really wanted to tell Mr. McElroy is that there must be some flexibility regarding the budget but it must be exercised by the very top men in Defense. Budget officers operate by guidelines and take a completely rigid stand, such as “no new starts.”
Mr. McElroy expressed his appreciation to the President for what the President had told him. He said he would keep this “in his own vest pocket.” He assured the President he would not put up a program which he thought to be unwise.
Brigadier General, General, USA
- Source: Eisenhower Library, Whitman File, Eisenhower Diaries. Top Secret. Drafted by Goodpaster on November 6.↩