version of paragraph 17 of NSc 5503 was desimed to
ment of
ne GRC armed forces rather than to suggesst Q Petre
The President said that we were, of course, tolii.
instance about a possible future emergency development in th:
of a Nationalist counteroffensive afainst the mainland.
[ff
thing eventuated, the United States must be prepared tc a
ous equipment to the Nationalists.
However, it did not mear
now contemplated building up the Chinese Nationalists witn «=
military materiel designed for oftensive action. We should provide
Chiang Kai-shek with a limited capability in terms of amphil ious
equipment, but we should concentrate our assistance on the ¢ roeviSion of defensive equipment.
So we will be well-advised “co talk
about cases and facts in terms of actual equipment rather th
terms of missions.
The Presideny ree’firmed that he «ms cen
against the revision of paricrazt L of NSC 5503 proposed bs
Bureau of the Budget.
Br. Cutler cited the fi.uires which indicated :softl» procramming and heavy U. 5S. expenditure for Taiwan over the threes years
through fiseal 1960, end tm: ver, 2cnsiderable maintenance costs after that year.
This certainly, seemed to Mr. Gutler te wmvolre the
quesvion of a modest cut in these programs and expenditures.
Secretary Wilson cautionec against movin: toc fast in muiking such cuts, for this woud be sound to get us imto troutbl:.
Hevertheless, over the long haul we cre leaning on a pretty wea. reed
in the shape of the Chinese Naticenal Government.
The President emphasize. tnat im this consent our reir purpose was tc maintain our hold on the off-shore island chain.
<t was
in order to do this that we must let Chiang itai-shek believe that he
may ultimately succeed in setting tactkh to the mainland.
Se:-etar
Wilson said he doubted whether Ch_ion- reall; believed
round
ever stage a successful retum to tne mainland,
allusions to the possibilit, were largely a matter
repented
Laie.
Secretary Andersor said that he agreed with the Pr sident
thet we could not say to the Generalissimo that his hone of :eturn-
i
ing to the mainiand was a forlern hope, but we should supply as lit-
'
tle materiel as possible to sustain this hope.
REPRODUCED AT THE DWIGHT, D.
eeae
"
EISENHOWER LIBRARY
ve
oe
:
secretary Dulles commented that there had been 2Sey yreat
improvement in economic conditions on Teiwan in recent yeers ana
montns. at Cutler pointed out, poweyer that in the attasenent ZO
Annex F of the Flanninz Foart paper, the Troasury Devartment a:moer
of the puting Board had ersressel considerable doubt ar -;
State Department's contention: with xr SPEtt to Storemi: 2c or
Tadven
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