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/specialCollection/BerlinWall/1961-Summer/1961-07-12c.pdf

Central Intelligence Agency · 163 pages · text by GLM-OCR

This Top Secret study by the Interdepartmental Coordinating Group on Germany and Berlin, dated July 12, 1961, and released by the Central Intelligence Agency, answers NSC Directive No. 58 of June 30, 1961. It sets out courses of action for the Berlin crisis but does not judge their merits. It covers imminent presidential decisions, a three-phase timetable running to January 1, military preparations and mobilization, covert action, economic sanctions, public information, negotiating positions and checkpoint procedures for East German personnel.

  • p. 92 …the above actions /designed to provide a capability for dealing with the Berlin problem in advance…
  • p. 96 …the above actions designed to provide a capability for dealing with the Berlin problem in advance…
  • p. 98 …The Berlin preparedness measures and public reaction thereto might engender hoarding, scare buying, advance stocking, speculative…
  • p. 99 …the change is due to the conjunction of high levels of economic activity in other advanced…
  • p. 100 …However, it is only prudent to plan in advance to deal with the unfavorable contingencies described…
  • p. 130 …the change is due to the conjunction of high levels of economic activity in other advanced…
  • p. 145 …The Soviets justify their demand for the conclusion of separate peace treaties with the "two German…

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Balance of Payments Impact of Increased Deployment.

The above figures provide a rough guide for estimating the balance of payments impact of increased deployments. Deducting from $1.5 billion, $100 million of expenditures for major equipment and MAP/OSP (on the assumption that all major equipment for the additional troops would be purchased in the U.S. and the U.S. would not contemplate OSP as a means of assisting the military buildup of our allies), the net is $1.4 billion. Using $1.4 billion as the remaining balance of payments cost of the present 5 divisions, plus supporting troops and the present level of air and naval forces, one fifth that amount, i.e., about $280 million, can be apportioned per division.

Accordingly, $250-$300 million per year is estimated as a rough measure of the cost to the balance of payments of stationing one additional division in Europe, together with supporting air and naval forces. There are additional factors which could affect the cost. Increased expenditure for construction, bringing present divisions up to full strength, and greatly increased requirements for tactical air strength could raise the figure above $250-$300 million. These added expenditures would be partly offset by savings on dependents, since it is assumed that dependents would not accompany the additionally deployed forces. Further savings would result from bringing home dependents currently in Europe. Stationing the newly deployed forces in temporary and inexpensive quarters might bring additional reductions in cost.

As a rough guide, however, an estimate of $250-$300 million per division would appear reasonable. For the four Alternatives, the estimates of additional annual balance of payments impact would be:

Alternative	I-2 divisions	$ 500-600	million
"	II-4	"	1,000-1,200	"
"	III-6	"	1,500-1,800	"
"	IV-12	"	3,000-3,600	"

Recommendations on Opate of Increased Deployment.

Inasmuch as the proposed military preparations are directly related to the problem of Germany and Berlin, we should look to the German Government for logistic and balance of payments assistance for additional U.S. forces deployed to Europe. The strong German reserve position of

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About this file

FOIA release, from the cia-readingroom collection. The PDF is mirrored here; the original link is above. The text was read from the page images by GLM-OCR; expect the odd misread word. 163 pages are in the text index: search them above, or from the library's search.