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                  <text>TOP SECRET
September 5, 1952.
Visit of the Secretary of State
for External Affairs to Washington
September Zi.-5. 1952
Summary of Conversation at Dinner
at the Embassy Residence. September 5
The following were present at the dinner:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.

Pearson
Acheson
Wrong
Freeman Matthews
Perkins
Ignatieff

The following subjects were discussed:
1.
2.
3.

NATO problems;
British economic problems;
Question of the postponement of the general debate
at the forthcoming session of the General Assembly.

1.

NATO Problems:

Mr. Pearson explained that one of the purposes of
his forthcoming visit to Europe was to turn over the Chairmanship of the North Atlantic Council at the end of his tenure
of this office for a calendar year to the Foreign Minister
of Denmark. He said that since he was a candidate for
election to the presidency of the forthcoming General
Assembly of the U.N. he thought that it was particularly
important that he should turn over his office now, rather
than wait until the North Atlantic Council Ministerial
meeting on December 15. Mr. Acheson readily agreed that
this was desirable.
Mr. Pearson said that he also wished to discuss
current NATO problems with Lord Ismay, with particular
reference to preparations for the annual review and the
decisions which would have to be taken at the Ministerial
meeting on force targets. He hoped that it would be possible
this time to avoid the kind of controversy which arose before
and after the Lisbon Council meeting as a result of statements which appeared in the press comparing the alleged
performances of the respective signatories in meeting the
recommendations of the Temporary Council Committee; and to
avoid as well the issue of ambiguous announcements of
military objectives. While he recognized that decisions
would have to be taken by the Ministers to complete the
Lisbon 1952 programme as quickly as possible and to continue
the military buildup, balancing military, economic and
political considerations, he hoped that it would not be
necessary to confront governments with specific qualitative
targets which they would be urged publicly to fulfil in
1953. This was not meant to imply that firm figures might
not be set for 1953, but we should avoid public debate on
the subject prior to NATO agreement, and also avoid as far
as possible the projection of figures beyond 1953 in such a
way that we appear to accept them as agreed. He also wished
to examine, while he was in Europe, the implications of the
announced cutback in the British defence programme with
particular reference to the thesis which had been put
forward in justifying it. He was worried about the effect
000074

�- 2 of this and recent French statements on NATO objectives and
NATO morale. This thesis assumed a revision of the strategic
concept governing North Atlantic military planning by assuming
a greater reliance upon the strategic and tactical use of new
weapons and of air power. This thesis, while it had certain
superficial attractions, as it seemed to justify reductions
in overall military expenditures and particularly the reduction of ground forces which would have to be made available
after the first 60 to 90-day period following D-Day, had
serious political implications, particularly in respect of
probable reactions in continental Europe where once again
they might think they were being considered as expendable.
Mr. Acheson made it clear that he had no sympathy
for the British thesis. It seemed to him that it was a rationalization advanced to justify the decision taken by the British
Government for political reasons to cut back its defence
programme. The British argument, he said, could not be
justified by the facts. The strategic use of atomic weapons
would not materially affect the campaign which would have to
be fought to stop the advance of the Soviet forces in Europe.
The strategic counter-offensive which would be launched from
the United States would only have longer-term effects upon
the Soviet war potential. In the meantime, it was essential
that there should be sufficient ground forces with tactical
air support to stop the Soviet advance. No one had suggested
that these forces should be of a magnitude which would permit
them to mount a counter-offensive to drive the Soviet forces
into the Soviet Union. The assumption was that, initially,
the Soviet forces would advance a considerable distance into
Western Europe and it would be necessary to launch at least
an initial counter-offensive in order to stop the momentum of
the Soviet advance. This explains the necessity of having
covering forces immediately available for combat, with forces
in reserve which would be made available within 30, 60, or
90 days of the beginning of the battle.
Mr. Acheson said that the British thesis also seemed
to assume the existence of new types of special weapons which
could be used tactically in the land battle to compensate
for the numerical superiority of the Soviet ground forces.
Mr. Acheson said that while it was true that the United
States was experimenting with the development of a number
of what he called "Buck Rogers" gadgets, none of these could
be counted upon for use in the field until about 1956.
Mr. Acheson said that the British thesis also seemed
to assume that the Soviet Union has no intention of launching
a general war in the next two or three years. If by this it
was meant that the Soviet leaders were not likely to decide
to go to war on the calculation that Western military power
now being built up might later place them at a greater
military disadvantage, he was inclined to agree. This, however,
he suggested, was not the real danger. The risks of general
war were more likely, in his opinion, to arise from a different
set of circumstances. There were certain circumstances, he
particularly mentioned Korea and Berlin, in which the national
security interests of the Soviet Union and the United States
and other powers were so directly engaged that some unforeseen
development might unloose a chain of events (none of which
by themselves might be decisive), but which, taken together,
might precipitate a general war. For instance, a serious air
offensive launched against the U.N. forces in Korea from
across the Yalu River would represent a most serious challenge
to the security of U.S. forces in Korea that might well
precipitate a chain of events. In Berlin, Mr. Acheson thought
it was unthinkable that Western Powers could give up a position
which the Soviet Government had in its power to make untenable
from a military point of view.
ip^Q

000075

�&gt;

- 3 The second type of situation which Mr. Acheson
regarded as inherently containing the risks of general war
was a local conflict in which the interests of the United
States, as well as the Soviet Union, became increasingly
and directly involved. He cited as an example the present
situation in Indo-China and in the Middle East. Neither in
Indo-China nor in the Middle East had the United States
sufficient resources to take preventive action in advance.
The United States, therefore, had to improvise with the
military resources available such action as was necessary
to impede the fulfilment of Communist designs.
Returning to the question of the NATO force targets,
Mr. Acheson said that the main object of NATO military planning
at present was to build up the minimum forces necessary to
stop the initial Soviet attack. In order to provide the
basis for the necessary request to Parliaments for the
authorization of funds, force targets seemed to him essential.
Mr. Pearson then said it was the process of establishing them
and the publicity given to that process which worried him.
Mr. Acheson suggested that a distinction might be made between
the tactics employed in the presentation of such targets to
the public and their use by governments for supporting defence
appropriations. He did not see, however, how it was possible
to avoid establishing firm force targets for 1953; otherwise,
the United States, for example, would not have any firm basis
on which to request Congress for foreign military aid in
support of the NATO defence programme. He implied that it
might be possible to reduce to some extent NATO targets insofar as the military requirements recommended by the Standing
Group proved to be beyond the economic capabilities of the
respective NATO members. It was necessary, however, in his
view, to continue the buildup of forces to the extent that
the economic resources of the member nations would permit.
The possibility of using new atomic weapons, tactical and
strategic, could not affect NATO military planning in the
next two or three years.
2.

British Economic Problems:

Mr. Pearson outlined as a matter bearing on NATO
defence questions the plans for the Commonwealth economic
conference to be held in London at the beginning of November,
and the preparatory official talks which were to precede
this conference. He also Indicated in general terms the
approach of the Canadian Government to the problems raised
at this conference, emphasizing that it was the Canadian view
that the conference would have to examine both external and
domestic policies of the members, in order to find remedies
rather than palliatives. Canada's attitude would, he thought,
be constructive, co-operative but realistic.
Mr. Acheson expressed very gloomy views about British
economic prospects. He suggested that there were two main
problems involved (a) the domestic decisions which confront the
members of the sterling bloc, particularly
the United Kingdom; and
(b) the question of the sterling debt.
He was not optimistic about the prospects of the United Kingdom
Government taking the necessary domestic decisions which would
serve to establish British solvency. The sharp division within
the country between those who were firmly committed to Socialist
doctrine and those who sought to maintain Capitalist free
enterprise resulted in an unstable political situation in
which no government could maintain itself in power for a time
„ ^. r, •

• 000076

sufficit„_

�- 4sufficient to permit either doctrine to be applied effectively.
He thought that it was most improbable that Mr. Churchill's
administration could, in fact, take the kind of actions which,
were necessary to stem the inflationary trend in Britain.
Cuts in the food subsidies and social services, for example,
would affect approximately 80% of the population that were
benefiting from the subsidized prive level and would almost
certainly lose the next election for the Conservatives. He
suggested that the British Government had missed its best
opportunity to revise its economic policy immediately after
the last election. As regards the question of the sterling
debt, it was his understanding that the remedy would have to
depend on the co-operation of governments such as India,
Pakistan and Egypt in agreeing to the refunding of this
debt, and he doubted whether these agreements would be forthcoming.
3.

Question of the Postponement of the General Debate
at the forthcoming Session of the General Assembly:

Mr. Pearson said that he was rather concerned about
the insistence of Messrs. Eden and Schuman that the general
debate, which was usually held at the beginning of the
session of the General Assembly, should be postponed until
after the U.S. Presidential elections. He thought it was
most undesirable that the U.S. general elections should be
advanced as the reason for changing the plans of the General
Assembly. He doubted whether such an argument would be
acceptable to a majority at the General Assembly.
Mr. Acheson said that he agreed that it was undesirable
that such a reason should be advanced for a postponement of
the general debate. However, he suggested that the problem
might be approached from a pragmatic point of view. He
suggested that it should be quite feasible to arrange consideration of the various items on the agenda so that it would
not be necessary for Messrs. Eden and Schuman to come to New
York until after the elections. He said that he was definitely
sympathetic to the request of Messrs. Eden and Schuman. If
the roles were reversed and he had to attend a conference
in either the United Kingdom or France while elections were
proceeding there, he would hesitate about attending the
conference for fear that he would inevitably, by some remark,
become Involved in a political controversy. He suggested
that it was unnecessary to make any a priori decision on
the question of postponement.
Mr. Pearson suggested a compromise might be found in
beginning the general debate, allowing it to go on for a
couple of days, then postponing it for a couple of weeks,
on the ground that some delegations have stated they are
not ready to proceed; then go ahead with Committee work
until Eden and Schuman arrive.

000077

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