TOP SECRET General Cutler explained the reasons that had prompted the Defense and Treasury members of the Plenning Board to add the bracketed language. When General Cutler had concluded his summary of the Planning Board discussion, the President inquired whether we were talking here of very large military units only, or were we talking about small MAAG units? The latter, he supposed, had diplomatic immunity. Mr. Gray reminded the President that only the higher officers in our MAAG units abroad enjoyed the privileges of diplomatic immunity. After further lively discussion, the President inquired whether it would not be wise to suggest a further and more detailed examination of this issue by the Departments of State and Defense. General Cutler replied that the matter had been so much studied already that another study was likely to produce more confusion than clarity. Secretary Herter then indicated that the State Department would have no objection to the inclusion of the language proposed by Defense and Treasury. Secretary McElroy concurred, but suggested deletion of the phrase "where feasible" in the second line of the Planning Board recommendation, inasmuch as this phrase wes not appropriate for the wording of an objective, as opposed to a course of action. As he was leaving, the President adverted once again to the discussion of the U. 5S. base structure overseas. He spoke with earnestness to the effect that the whole matter should be the subject of soul-searching in order to determine the net value and ad~ vantage of each of these bases to the United States. He was not, he insisted, asking for any new study, but instead asking each responsible official to keep this matter constantly in mind. There was grave question, he said, in his own mind as to the net value of many of our overseas bases, although there were, of course, exceptions such as Okinawa and the Bonins. General Cutler then came to the final issue selected by the Planning Board for discussion, relating to the sharing of defense responsibilities with Canada. He read the majority proposal and the ODM proposal, as variant Planning Board recommendations for Council agreement, as follows: be . xg r > ht b-2 : F YY a ’ i : "ODM Proposal, "The Council on Foreign Economic "The Planning Board should Policy should be requested to prepare, for consideration study all possible means of inproving U. 5.-Canada economic relations, and to transmit to the National Security Council any recommendations requiring —— a -19- a f aa J. a a“ by the National Security Council, a draft policy paper on all aspects of our relations with Canada." Presidential consideration." wt 4 "Majority Proposal mp: # nop SECRET - eke wet

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