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Suggestions of any member of the Coun¢il on the form and content of
this speech. The Vice President assented to this proposal, and Secretary Dulles' speech was read by Mr. Cutler. There were several
suggestions for changes in the draft, a number of which were accepted by Secretary Dulles.
&.m.
The President joined the meeting at 10:55
.
The National Security Council:
Noted and discussed the draft report on the recent NATO
meeting prepared by the Secretary of State for presentation at his broadcast on Monday evening, December 23, 1957.
2.
PROPOSED U. S. MERCHANT MARINE POLICY
(Memos for NSC from Executive Secretary, same subject, dated
October 9 and December 10, 1957)
Secretary Dulles was obliged to leave the Council meeting
at 11:15, and his place at the table was taken by Under Secretary
Herter.
;
(
Mr. Cutler introduced the subject and called on Mr. Gray
for a fuller analysis.
{A copy of Mr. Cutler's introductory remarks
is filed in the minutes of the meeting.)
Mr. Gray read to the Council a report describing the developments in the U. S. maritime policy since last summer. He particularly noted that in the deliberations on this subject in the Defense
Mobilization Board, the Director of the Bureau of the Budget had dis_ sented from the majority view. Mr. Brundage had expressed the view
that, in compiting the requirements for the U. S. maritime fleet
necessitated by considerations of national defense, the Joint Chiefs
of Staff had based their requirements on the assumption of general
war and had not computed the requirements for merchant shipping under
the assumption of a lecal war. Mr. Brundage had thought that in
their forthcoming review of requirements, these requirements should
be computed under both assumptions.
Secretary Quarles, in reply, reiterated the view of the
_ Joint Chiefs of Staff that it was not feesible nr desirable to study
shipping requirements under these two separate assuniptions. The pos- _
sibilities under the assumption of a local war were so variable as to
make the conputation almost ineeningless.
In summing up his historical presentation, Mr. Gray said he
believed there were two matters in connection with U. S. maritime pclicy which called for Couneil action. First, the re-affirmation of the
general policy statement recommended by the Defense Mobilization Board,
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