TOP SECRET sustains the morale of the Chinese Nationalists on Taiwan. The Fes- ident added that of course this did not ~2an thet we now Tropose «c send them masses of military materiel for their use in an invasio. ¢ the Chinese mainland. rs Secretary Wilson said that he had ea point of view somewnat different from that of the President. While he understood the basis of Secretary Dulles! feelings, and had not seen the Generalissimce for some two years, he did believe that if ve were realist: we should continue to budget our assistance to the Chinese National Govermnent on about present levels, or even to tut these levels down somewhat in a quiet way. Not only were Chiang and his scidiocrs growing old; the day was coming soon wher we were roing to nive td reapportion all our resources avullable for Poreim ass stance The President said thet it seemed to him thet as the «sl- and becomes populated more and more by native Taiwanese and less anc less by mainland Chinese the interest in returning to the Jhines2 mainiand would prorort jonately lessen. secretary Dulles re Led te the President by pointing out that it wars much more basre t all hope of a Nationalist return to the mainland were to be the United States would lose the weele show in the Pari: simply could not afford to permit tne chinese Netionalis uo thi we believe that a Communist Chin: vas 2 permanent feature of !istory Secretary Wilson asked Secretary Dulles fo: basis of the view he had just expressed. Se:rretary I that his view was based on the test judgment of aur ical observers. Mr. Cutler then stated thet ingsmuch as we had neard smuch from the proponents of the bvroader interpretation 22 the mi: sions ¢ the GRO armed forces, it would be perhaps apropos << from Mr. Brundage on the narrower interpretation of these miss: vwnich would confine them to the defense of Taiwan, the Tenrhus the off-shore islands, and stating t.at any other miss.2 mock te forces was merely a by-product cf these “wo missions enin-* a sta rate and distinst mission justifying sddit.onal build-up +7 an 327 forces. TOF SECRET + ‘ REPRODUCED AT THE DWIGHT D ™ EISENHOWER LIBRARY eo. Mr. Brundege began by stating that representative: of he Bureau of the Budget who had made trips to Taiwan were ecnvtneed 4 that Chiang Kai-shek was seeking more military power in crder to , launch e counteroffensive against the Chinese Communis~: rairland |Sssentielly, therefore, what the Budget was seeking, was to cuard ‘neeinst a further U. S. bulld-ur of existing GRC fcrces rather tha: ® reduction in existing levels. of course, he added, the Buds Nureeu would accept the judgment cl tne :resident and the ge L ef State in this matter, but he repea-ed that the Fropesed Vudre

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