Page:Pentagon-Papers-Part V. B. 3. a.djvu/208

Declassified per Executive Order 13526, Section 3.3
NND Project Number: NND 63316. By: NWD Date: 2011

 

 

(7) Not to exceed $385 million will be all the US. will provide for "mutual defense financing" up to 1 January 1955, realizing that additional funds may be needed thereafter. Source of the $385 million need not be disclosed to French but it may be desirable to make certain savings in FY 54 end item programs for France and Indo-China.)

(8) Any savings accruing from more detailed planning and screening will reduce the U.S. aid required.

(Note that the President's suggestion re EDC is left out of the above. This is because opponents of either program may join forces in the French Assembly to defeat the Indo-China program. However, it should be made clear to French that failure to include ratification of EDC as a condition of aid does not indicate that our assumption that she will ratify has changed in any respect.)

b. Consultation with Congressional leaders.

c. Aid agreement with French will be reduced to clear written detail in a classified Note or Aide Memoire to avoid the frequent and divisive controversies surrounding this subject in the past.

RECOMENDATIONS:

12. It is recommended that you:

a. Ask for full discussion of the impact of the transfer of funds from aid to NATO on NATO force levels and offshore procurement, and the likely political results on the other NATO government. (Mr. Dulles, Mr. Stassen and Admiral Radford may comment thereon.)

b. Ask if the Secretary of State believed it essential for the NSC to act in principle at this meeting:

If the Secretary of State replies that the NSC should act at once, then we recommend you approve the proposal in principle to be followed by the immediate conduct of through discussions with appropriate Congressional leaders and subject to French acceptance of the conditions listed in paragraph 11 a, above.

 

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