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General Cutler next directed the Council's attention to
the remaining difference of view, which occurred in paragraph 44,
reading as follows:
"When pro-Western orientation is unattainable, ac-
cept neutralist policies of states in the area even
though such states maintain diplomatic, trade and cul-
tural relations with the Soviet bloc (including the re-
ceipt of military equipment) so long as these relations
are reasonably balanced by relations with the West. Be
prepared to provide economic and /reimbursable/* mili-
tary assistance to such states in order to develop local
strength against Communist subversion and control and to
reduce excessive military and economic dependence on the
Boviet bloc.
"* Defense and Treasury proposal."
‘After General Cutler explained the opposition of Defense and Treasury to providing grant military assistance to the states of the Near
East, the President commented that in point of fact we do give military assistance to certain nations with whom we have no military
agreements. To that extent, at least, we provide grant military
assistance to neutral nations.
On the other hand, Secretary Dulles stated that he was
inclined to agree with the proposal made by the Joint Chiefs of
Staff, that we decide to provide such aid on a case-by-case basis.
We should remember, for example, that we might want to provide
emall amounts of grant military aid to Yemen if doing so offered
a chance of changing the present direction of Yemen's policy.
graph 4h,
The President then suggested revised wording for para-
The National Security Council:
a.
Discussed the draft statement of policy on the subject
contained in NSC 5801; in the light of the views of
the Joint Chiefs of Staff thereon, transmitted by the
reference memorandum of January 20, 1958.
b.
Noted the statement by the Vice President as to the
urgency of dealing with the Arab refugee problem.
ce.
Adopted the statement of policy in NSC 5801, subject
to the following amendments:
(1)
Page 18, paragraph 30:
Include the State pro-
posal in the right-hand colum.
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