Memorandum of Conversations at the National Security Council Meeting

DECLASSIFIED MA E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 PROJECT NLT 79-15 288 By NLT- HC NARS, Date 6.6.fa TOP SECALT ATION September 24, 1952 At the NSC meeting this afternoon NSC 135/2 was approved with the amendment to paragraph 9b recommended by the Senior Staff. I made the statement regarding 9b which was suggested at this afternoon's briefing and this was received with apparent approval by all. In connection with the meeting, two matters were brought up of some importance. 1. Joe Fowler made a statement bearing on paragraph 9a and paragraph 16a. He says that he has a report available bearing on this matter which would be accessible to those making the reexamination called for by 135/2. The report, as I understand it, is to the effect that the work on the expansion of our mobiliza- tion base has now proceeded so far that it is possible to have a very considerable increase in the production of various end items without adding to our inflationary troubles or interfering with civilian demand. This production might take the form of military end items of certain sorts which did not require redesigning of plant or tools. It might also take the form of exports of producers goods should these be needed in connection with foreign aid or foreign investment. He thinks that acceleration could show results, if it were approved immediately, by the middle of 1953. This is a matter which I think Mr. Nitze will wish to look into. 2. Jack Gorrie distributed the attached paper. After having the paper read, the President said that he was not suggesting any action on it at the present time. He thought that members of the Council might wish separately or together to discuss the matter with Gorrie and to have all documents in his possession which substantiated his position. Here again is a matter which I think will require investigation. The President contemplates the possibility of a later discussion and possible action in regard to allocating funds. The Acting Secretary of Defense put in a caveat that this was a much disputed field; that he thought the costs would be vastlmAn excess of those suggested in the paper, and that the scientific developments were disputed by other scientists of equal repute. DA S:DAchesonimlm