53. Editorial Note
On October 24, 1961, Deputy Secretary of Defense Roswell Gilpatric and German Defense Minister Franz Josef Strauss signed a memorandum of understanding that envisioned the creation of a military cooperative logistics system between the two governments. These arrangements resulted from the U.S. Government’s recognition of the need to provide a sufficient supply line for the expanding Germany military forces and the economic advantages of cooperation in the military production field as well as the necessity of dealing with the drain on the U.S. balance of payments caused by the stationing of substantial numbers of U.S. military forces in West Germany.
The text of the memorandum of understanding reads as follows:
"The Minister of Defense of the Federal Republic of Germany and the Deputy Secretary of Defense of the United States have reviewed the [Page 133] status of the studies which have been jointly conducted by the two countries of the possibilities of increased mutual cooperation and assistance in military matters. They have concluded that a cooperative logistics system is feasible and desirable, and express their intention that formula agreements and detailed procedural arrangements to establish such a system be entered into expeditiously between appropriate representatives of the two countries.
"It is understood that the cooperative logistics system contemplated by this memorandum will include the following major features: cost sharing in research and development projects; procurement services in the United States; depot supply support and depot maintenance services in Europe; sale of United States war reserve stocks prepositioned in Europe; storage facilities; and joint use of major and local United States training areas in Germany.
"It is anticipated that under the proposed cooperative logistics system payments by the Federal Republic of Germany to the United States for materiel and for research, development, procurement, supply, maintenance and other logistic services, including the Federal Republic of Germany’s share of the system’s capital and operating expenses, will be sufficient to insure that military transactions of direct benefit to the U.S. balance of payments are large enough to offset the transactions of U.S. forces in Germany of benefit to the FRG balance of payments, on the basis of such forces presently stationed in Germany or heretofore announced for movement to Germany. In the event of further deployment of U.S. forces to Germany, the two governments will consider methods whereby the balance of payments effect of such movements can be adjusted to their mutual benefit.” (Telegram 981 from Bonn, October 24; Department of State, Central Files, 811.10/10-2461)