TOP SESRET
Secretary Dulles undertook tc explain to the Presiden
what the issues were. Mr. Cutler followed with a fuller e:plar.
tion, in terms of the past history of our policies toward Taiwa
He cited paragraph 3 of existing U. 5S. policy toward Formosa, w.1
set forth the missions of the GRC armed forces as fellows:
"3. Continued develonment of the military poten
of GRC armed forces (a) to assist in the defense of F
mosa and the Pescadores and (b) to take action in def
of the GRC-held off-shore islands, equipped and train:
to contribute to collective non-Communist strenvtn in
Far East and for such other aztion as may be mutuell.
agreed upon under the terms cf the Mutusl Defense Tre.
Mr. Cutler then explained thet the dc:fference in interpr
Ye
this paragraph derived from disasreement as to whether t
eth
bution of the GRC armed forces to collective non-Conmunist
in the Far East and for such other action as might be muvually vereed
upen under the terms of the Mutuel U-fense Treaty, constituted we DEe
rate end distinct missions, or were merely by-procucts cf *he f wee
two missions of assisting in the def-nse of Formosa aril im tne
alae
fense of the GRC-held off-shore
SAGs .
Ves a;
The President replied that this was not vhat he wre
about.
Here in the Council we were writing a policy Tor ourse:
end we do not have any obligation to tell all about it to Chian.
Kai-shek.
What the President said he was after was the acvual
fect of our language, because he emphatically acreed with “he 3°
Department on the danger of destroyince Nationalist hopes of ar
mate return to the mainland.
‘This, of course, @ic not mean toa
were obliged to tell the Chinese iat.onelists everything «else 7»
we have in our mind about them
At this point Secretary Ducles broke in to state
was precisely the intention of the sentence proposed “y
of the Budget in the proposed revision cf paragraph 17 of NSt
where it is suggested that we ‘make clear to the GRO theat--exc
the event of substantial change in the world situstior or uf to
tions on the mainland of China--our future military and econon: sistance programs will not be premised on the assumpt or
the
return to power on the mainienc.”
Mr. Cutler explained the basis for the Budget's -cint
view as expressed above, and aiso called attention to the urrum
of the State Department representetive on the Flarmin> Foard +h.
Wwe ere already telling the Chinese Nationalists what the Bud->
proposes that we tell them in she Bucset revision of pera-rarr
Speaking with emphas.s, t!..
agreed with the revision of perecrep!
the Budget.
Only the hope of - itunate
REPRODUCED AT THE DWIGHT D.
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