Foreign Relations of the United States, 1951, European Security and the German Question, Volume III, Part 1

740.5/4–551

Memorandum by the Director of International Security Affairs (Cabot)¹

top secret

[Washington,] April 5, 1951.

Subject: United States Governmental Position on Completion of the North Atlantic Treaty Organization Medium Term Defense Plan

The member nations of the North Atlantic Treaty are considering what national contributions should be made to close the gap between force requirements and present national contributions under the North Atlantic Treaty Organization (NATO) Medium Term Defense Plan (MTDP). The initial action on these considerations is with the Standing Group based on information from nations and the Supreme Allied Commander, Europe. The United States must appraise the impact on its resources both of what, if any, additional United States forces might be contributed and also what additional military and economic aid we would contribute to other members if the full requirements of the MTDP were to be met on the basis of an equitable distribution of the total burden among all the members.

Developments to date indicate that this problem can be effectively solved only through the exercise of American leadership. It therefore appears necessary that the United States take the initiative in proposing an appropriate level of forces to be achieved by each country and maintained under the MTDP, together with a proposed broad distribution of the production and financial burdens. The problem involves three parts: (a) adequacy of present national plans to raise and equip forces, (b) advisability of expanding programs of all NATO members to raise and equip additional forces (wholly or partially “closing the gap” between present plans and total MTDP requirements), and (c) consideration of increases in or acceleration of the MTDP.

The Department of Defense is now considering, from the military point of view, the further contribution of forces which could appropriately be made by each country toward closing the gap. The Department of Defense has suggested that, before United States initiative is taken within NATO, there should be a United States recheck from the financial and economic viewpoint. This should take into account: (a) United States domestic and foreign military aid programs, (b) NATO and non-NATO military requirements of the other NAT member countries, and (c) assuming an appropriate German contribution to the total, the ability of the United States and of the other NATO countries to raise and equip for North Atlantic defense the full complement of forces required by the MTDP and to maintain them for an indefinite period of time. This analysis may result in modified recommendations on the total size of desirable forces or on their distribution among individual countries.

Under the NSC 68 directives,² United States aid programs to NATO are to be calculated on the completion of the MTDP. However, current aid programs are projected only through Fiscal Year 1952. Moreover, it is not clear that they are on a basis which, with a feasible contribution from other NAT countries, will fully meet the equipment requirements of the MTDP. In considering completion of the plans tentatively set out under the NSC 68 series the International Security Affairs Committee (ISAC) has reached the following conclusions:

a. Although the United States cannot commit aid in advance of fiscal appropriations, a further understanding should be reached with the European nations and Canada on country commitments (if necessary on a contingent basis) which will meet the MTDP by July 1954, based on assumptions with respect to the United States contribution to the other nations as a group.

b. As a condition to United States agreement to a final program the other nations must express general assent to undertake national mobilization programs to raise and equip the forces required as their share of the MTDP.

c. That such a program for completion of forces by 1954 should not prejudice any possible arrangements to be made by the United States or other nations to accelerate completion of military programs.

In anticipation of the necessity of reaching an early decision within NATO, the responsible United States agencies for carrying out aid programs and supporting domestic production should reach joint agreement on the limits of the desirable or feasible levels of the United States contribution to the completion of the MTDP both in forces, equipment and economic aid, taking account of other concurrent claims on United States resources.

ISAC recommends that the addressees of this memorandum designate at once a highly qualified representative to serve on an ad hoc committee to be responsible for this job.

The main work by the agencies concerned would begin upon receipt of the military recommendation, in suitable form for processing, now estimated to be during the week of April 7, 1951. However, preliminary studies of the adequacy of present plans to meet present commitments and of procedures for measuring the economic load of the gap can be started immediately. The coordinated United States position should be achieved on or before April 20, 1951, since the Standing Group is to complete its recommendations as soon as possible after that date.

It will be appreciated that this review must be initially done on an “order of magnitude” basis. Any detailed programming required after the initial action would proceed according to existing methods.

The nature of this project requires a high degree of security in order not to hazard the position of the United States or unduly complicate future negotiations. It is therefore requested that the distribution of this project be limited to those individuals to whom the information is necessary.

Thomas D. Cabot

1. Memorandum for Charles E. Wilson, Office of Defense Mobilization; Frederick J. Lawton, Bureau of the Budget; Lincoln Gordon, Executive Office of the President; Maj. Gen. James H. Burns, Department of Defense; Najeeb E. Halaby, Economic Cooperation Administration; and William L. Hebbard, Department of the Treasury. This memorandum was drafted by Edwin Martin and cleared by Defense, ECA, Treasury, and the Executive Offices through the International Security Affairs Committee.
2. For reports in the NSC 68 series (U.S. Objectives and Programs for National Security), see Foreign Relations, 1950, vol. i, pp. 126 ff.