Memorandum of Conversation with Secretary of State Dean Acheson, Secretary of Defense George C. Marshall, Under Secretary of the Treasury Edward H. Foley, Richard M. Bissell, Najeeb Halaby, Frederick Lawton, and Others

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TOP-SEGRET DEPARTMENT OF STATE ma files 75 Memorandum of Conversation 156 DATE: June 21, 1951 SUBJECT: Meeting the MTDP Gap - ISAC D-4/7a PARTICIPANTS: State - Secretary Acheson Treasury - Under Secy. Foley Mr. Battle Mr. Willis E. M. Martin TRAMAN Mr. Bronz Defense - General Marshall S ARCHIVES REOORDS AND ECA - Mr. Bissell COPIES TO: General Bradley Es Mr. Halaby XXXXXXXXXXX Vice Admiral Wright Colonel Beebe Bureau of Budget - Mr. Lawton Office of the Special Assistant to the President - Mr. Lincoln Gordon U.S. GOVERNMENT PRINTING OFFICE 16-61120-1 The Secretary of State outlined the contents of the ISAC Document He indicated that it raised major policy issues on which it was desired to secure governmental agreement, including approval of the President as necessary. This was urgent in order that testimony on foreign aid legislation, scheduled to start the following Tuesday, could cover the points at issue, and in order that action could be taken promptly in the Standing Group to secure agreement on meeting the total force re- quirements of the MTDP. Secretary Marshall indicated he felt it important that we should now find out what others are prepared to do on forces and that we should tell Congress that we will need at least 17 billion in the next two years. He then asked General Bradley to express his views since he would have to leave shortly. General Bradley indicated, on the basis of his recent trip abroad, that he was reluctant to press the Europeans for too much now. The present price-wage problem was serious in the European countries and might open the door for Communist sabotage. Six months or a year from now we might be able to ask for and get a great deal more than we could now. He suggested we might let the situation drag a bit, since in six months or a year we could judge much more accurately what they can really be expected to do. DECLASSIFIED On the STATE DEPT. MEMO A-1-dy TOP SECRET Project NLT f2-4 By NLT- HL NARS, Date 9-5-dy