Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy

130. National Security Council Record of Action No. 2447⁰

Washington, undated.

Review of the Military Aid Program

1. Discussed the Report of the Military Assistance Steering Group and noted the following Presidential instructions:

a. Further reviews are to be made promptly of the military and economic aspects of long range US aid planning for certain major country programs. In these reviews, and in general aid planning, all concerned are to bear in mind that while we would like to have enough aid to accomplish all of our military and economic aid objectives, we are likely in any given period only to get enough appropriations to accomplish a portion of them. Therefore, we must plan in terms of which mix of military and other forms of aid will best serve our overall national security aims. In this sense, we must recognize that MAP and AID programs are competitive, as well as complementary, in terms both of their claim on US and local resources and their impact on the recipient countries.

b. The Joint Chiefs of Staff will reconsider their comments on the Steering Group Report,¹ taking into account the considerations in a above and recognizing that decreases in² military aid would be compensated by increases in economic aid.

2. Agreed that for Korea, Iran, Greece and Turkey, the following should be prepared for submission by July 15:

a. Proposed FY 1964-68 Military Assistance Plans (including the final proposed FY 1963 Program).

b. Similar plans for AID programs for the comparable period.

c. Recommendations, made in the light of the considerations in Para 1-a above of the mix of these programs, as well as our appreciation of the relative threats to overall US security interests in these countries. Military Assistance plans for Korea and for Greece and Turkey should include an alternative program based on the lower financial levels proposed by the MAP Steering Group and an analysis of the pros and cons.

In addition, the following are to be made:

(1) For Korea the military economic and political studies necessary to recommend a desirable Korean force level and structure, including the desirable level of US forces in Korea. (To be submitted by 15 June 1962.)

(2) For Iran a report (to be submitted as promptly as possible and not later than 15 February) on a proposed approach to the Shah to achieve a reduction to a force level of 150,000, taking account of relevant political and economic factors.

(3) For Greece and Turkey the report (to be submitted by 15 July 1962) will take account of the special factors created by their NATO membership and participation in the present Berlin crisis buildup.

3. The Director of AID, acting under Executive Order 10973,³ will be responsible for carrying out the above studies. To assist him in an advisory role, he may continue, if he so desires, the Military Assistance Steering Group to be chaired by AID.

4. Agreed that the Director of AID will also study what improved planning and programming techniques are needed so that military and AID programming can be effectively coordinated to insure that total US aid to any given country is used to the best overall advantage. This report, to be submitted not later than 1 May 1962, is to include recommendations as to the most effective means, at both country team and Washington levels, for meshing the AID and MAP planning cycles.

0. Source: Department of State, S/S-NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council. Secret. The Action was taken at the 496th NSC meeting on January 18, along with Record of Action No. 2446. The source text is attached to a transmittal memorandum from Battle to several Department of State principals, January 23. A draft Record of Action was not discussed until an NSC Standing Group meeting on January 19 (Record of Action, January 19; Department of State,S/S-NSC Files: Lot 70 D 265, NSC Standing Group, 1/19/62), and was apparently not approved until some time between January 19 and 23.
1. Reference presumably is to the undated JCS position paper, “Guidelines for the Military Aid Program” (JCSM-43-62), which commented on a January 13 draft NSC Record of Action. (Department of State, S/S-NSC Files: Lot 70 D 265, Guidelines for Military Aid Program)
2. The word “in” has been inserted by hand in response to a January 22 memorandum (attached to the source text) from Bromley Smith to all holders of this Record of Action, requesting this change.
3. See Document 117.