Foreign Relations of the United States, 1958–1960, Volume III, National Security Policy; Arms Control and Disarmament, Microfiche Supplement

65. Memorandum of discussion at the 369th NSC meeting¹

Washington, June 19, 1958

SUBJECT

• Discussion at the 369th Meeting of the National Security Council, Thursday, June 19, 1958

Present at the 369th NSC Meeting were the President of the United States, presiding; the Vice President of the United States; the Secretary of State; the Secretary of Defense; and the Director, Office of Defense Mobilization. Also present were Mr. Fred C. Scribner, Jr., for the Secretary of the Treasury; the Attorney General; the Director, Bureau of the Budget; Mr. Walter Williams for the Secretary of Commerce (Items 2 and 5); the Chairman, Atomic Energy Commission; the Federal Civil Defense Administrator; the Chairman, Council on Foreign Economic Policy (Items 1 and 5); the Chairman, Joint Chiefs of Staff; the Director of Central Intelligence; the Deputy Assistant to the President; the Acting Director, U.S. Information Agency; the Director, International Cooperation Administration; the Special Assistants to the President for National Security Affairs, for Science and Technology, and for Security Operations Coordination; the White House Staff Secretary; Assistant Secretary of State Gerard Smith; Assistant Secretary of Defense Mansfield Sprague; the Naval Aide to the President; the Executive Secretary; NSC; and the Deputy Executive Secretary, NSC.

There follows a summary of the discussion at the meeting and the main points taken.

1. BASIC NATIONAL SECURITY POLICY

(NSC Action No. 1903; NSC 5810/l; Memo for NSC from Executive Secretary, same subject, dated May 26, 1958)

General Cutler explained that the President would be delayed for a few minutes and he would accordingly change the order of items on the agenda, dealing first with the question of U.S. policy with respect to international commodity agreements which had been unresolved when the Council last discussed it in connection with Paragraph 27–d of our new Basic National Security Policy (NSC 5810/1), at the Council meeting on May 1, 1958. He pointed out that on this occasion the issue had been referred to the Council on Foreign Economic Policy. On May 22, 1958 the Chairman of the CFEP, Mr. Randall, had filed a report with the Council giving the text of existing CFEP policy on international commodity agreements and also the consensus of the CFEP that this policy remained valid and should be continued in effect. (A copy of General Cutler’s briefing note is filed in the Minutes of the Meeting and another copy is attached to this memorandum).

At the conclusion of General Cutler’s briefing, Secretary Dulles stated that he had an observation to make with respect to the text of our policy in the matter of commodity agreements. He pointed out that the text of our policy as formulated by the CFEP revealed two different emphases. The first paragraph which reads as follows:

“The United States shares the concern of other nations about the problems arising from commodity price and market instability and is prepared to discuss and explore with other governments possible approaches to these problems”

according to Secretary Dulles emphasized the willingness of the United States at least to discuss and explore approaches to these problems. On the other hand, the last paragraph of our policy reading as follows:

“Representatives of the United States will not participate in any discussion or meeting with respect to an international commodity agreement and will make no commitment as to U.S. participation in such an agreement until approved at the interagency policy level within the Executive Branch.”

appeared to have a somewhat conflicting emphasis. It seemed quite possible to Secretary Dulles that the discussions authorized by the first paragraph could lead to a commodity agreement in which other nations than the U.S. would participate. A current example is that of coffee. Under existing world economic conditions, Secretary Dulles felt that we would want to be sure that the first paragraph of this policy was literally interpreted when it was implemented, although of course we would not agree to actual U.S. participation in any commodity agreement.

Mr. Randall said he not only understood Secretary Dulles’s point but agreed with him. Indeed this specific matter had been discussed at great length by the CFEP. The general view in the CFEP was that the U.S. should go ahead and discuss commodity problems with other nations as much as they desired but not to the point of sticking our necks out too far and being committed to participation in an international commodity agreement. Mr. Randall thought it was extremely difficult to express in words the sensitive emphases that both he and Secretary Dulles were agreed upon. It was hard to draw so fine a line.

Secretary Dulles said he believed that Mr. Randall was on the right track. Under current conditions the U.S. simply could not hold itself aloof from these problems of commodity price and market instability as we had been in a position to do when our policy on this subject had first been adopted and when commodity prices were relatively high.

The National Security Council:

a. Concurred in the recommendation by the Council on Foreign Economic Policy, prepared pursuant to NSC Action No. 1903–b–(5) and transmitted by the reference memorandum of May 26, 1958, that existing policy or international commodity agreements is satisfactory and should be continued.

b. Noted a statement by the Secretary of State that, in the implementation of U.S. policy on international commodity agreements, a liberal interpretation should be given to that portion of the policy which states that the United States is prepared to discuss and explore with other governments possible approaches to problems arising from commodity price and market instability; while adhering to that portion of the policy which states that the United States will not participate in any discussion or meeting with respect to an international commodity agreement and will make no commitment as to U.S. participation in such an agreement until approved at the interagency policy level within the Executive Branch.

NOTE: The above actions, as approved by the President, subsequently transmitted to the Chairman, CFEP.

[Omitted here is the remainder of the memorandum.]

S. Everett Gleason

1. Source: Agenda item 1: Basic National Security Policy. Top Secret; Eyes Only. Extracts—4 pp. Eisenhower Library, Whitman File, NSC Records.