CL 1 ac 7 7 u enammwt l mcs or THE sures zinc REWEWED BY DATEOUTGOIN 7 RC5 or me EXT DA 9 9'9 TS AUTH reason Osim s rmr '3 PRIORITY - 1 3 3 ENDORSE 3 357 51 f- 1 tag li m RELEASE PA or re 'i usesun Atgtriicm with Chancello 3 mm -- gainitzz Figs'rfgm RBI-isoul Sljm 5 i - EXISTING munch 3' C 5 5 139D RELEASLBLED A RELEAS 2 Kg g 12E err DISTRIBUTION or donsf 33 3 2 There is enclosed moren tire of the conversatiog - 5 a which Secretary McNamara had with Chancellor Adennuer on July 13 ltr- Ae n- 0 KEV 1 36 7 -- urn of the conversation wee the the situation following the Test Ban Trent-rhod' - hi heeitstion' to declare whether Germany Giould ecc -He was particularly concerned about implied cognition of Secretary McNamara pointed out he believed the Treaty resulted irom weetern strength and did gem that the western powers could now relax He also the Chancellor that the treaty did not imply recognition In addition Secretary MC the importance of obtaining a lull o eet to in Germany Although Secretary McNamara concurred in the telegram Embtel 422 on which this conversation was based the Department may wish to check with 05D before making further distribution For the Ambassador The principal feet '31 poesimistic appraisal of cant 1 Namera emphaeized to the Chancellor our military expenditures if 12 543 12 errata - 1 Endo iure - 1 Memorandum of Conversation Coburn Kidd Counselor of Embassy GROUP 3 Internal diotributio at 12-year Ligger e MB DCM POL-6 tically declneef e 401 -I-- 77' AAG Attaches 1 ea Downgraded not autome CKidd FOMHIFJGEI - I - 1 31 1 they had d1 Form LEIGH - 611 - THE SERVICE OF THE UNITED STATES OF AMERICA i921 'f MEMORANDUM OF CONVERSATION A-250 Aug 2 1963 Enclosure Wedneedny mm 1963 - I - g Bonn PARTICIPANTS German Chancellor Adenauer Minister of Defense von Haheel State Secretary Weatxick Economic Herr Kneterer interpreter Secretary McNamara McGhee Secretory 'Mcth-nnxia met-with Chancellor Adenaunr for npproximateiy two hoot-e The Chin-cello congratulated the on his accomplilhmente in putting the three hi'anchol'ni the armed force of the United State to- gether The Chancellor than asked Minute von Hansel to summarise what be Need at the cheating he had had earlier with Secretary McNamara t-th fthW-MM Hnty'mvide any deti cation or rel arts The 2 3 5 Weltern ration- rn eater e 'orts He indicated that LF and the 5 Musical nuclear weapons iTomorrow they would go into the balance of payments problem He sropoeing that may rea irm the memorandum of greemont of inst May The Chancellor suggest-ed that the Secretary see Herr Abe President of the Denhihebank and Hen- Bleesing President of the Deuteche Bandea bnnk 'oofoz'o he departed iron Bonn in order to get their views on the balance of Raymenta situation Hat I IL Dr ' THE FOREIGN SERVICE OF THE UNITED STATES OF spears A-ZSO August 2 1963 Enclosure #1 Secretary McNamara stated that if the Soviet action- over the last two years cloeely one could conclude that Malcow responded only to power ahd pro-cure Such sign of at relandon of tension u'the test ban agreement and the eating up on Berlin had remlted in View from the lncreaeed ital-y power of the West particularly of the United StatelandGerman - -- - - Wm dbe doubled there were now 2 a could be relerae - - 15-20 minutes The total for a red 220 000 times that of the like u mb m a nuclear weapons In Europe have been Increased 60% - - a the United States 40% combat aircraft in the - I 35% Ho believe was neceeaary how both the United Stated and Germany'to continn -- - their - one - - I - The Chancellor said that in 1955 when he was in Moscow Mrcold he needed Germany's help He had rho-m no lcular lntereet at that ed China The Chancello curse had replied that h would not anal-t the n1 the United States and 113- felt that Khrushchev hadaf - - - - yr old this against hlm years later when visited Germany Mtko in reply to a query -- Chancellor that China and Russia were - had - u-d-to l - Whit-Erbium Ha cold Mikeyan had lasted a long time because be generally retire to an away place when the going gets hot The USSR mutt today face China and keep up its strength vLe-a-vls the United States while at the some time trying to improve the lot of the Soviet peeplo It does not have the strength to accomplish all these tasks up - The Chancellor felt that the Soviets had made great efforts against China by the devtlopment of eastern Siberia a territory of 7 million square kilometer II contrasted with the 9 million of the United States The land wan act ouitn ole for agriculture but had abundant water and mineral rc- aourceo He understood that it ie all a restricted area and is being develoyzd by forced labor He referred to a back Sibel-ten let Siberian by Marcel Glaglarla publiehed by Christian Wegner Verlag which he said he would be glad to lend to the Ambacencor as a study of much interest 53 3 Form AUGEI - Hell 55 II- UTA-331 F1 Eur- F54- 1M Fem AEIGFI - THE FOREIGN SERVICE OF THE UNITED STATES OF new -3- A-ZSO Auguet Z 1963 'Enclosure 1 Russia has actually been undergoing a shift in fronts from the West toward Chine '_ have had setbacks including 5 had crap lest year because of Lick-of labor and agricultural equipment One of the principal Russian de ciencies was lack of skilled workers They- could not be trained even as well an the Italians t'Then Khrushchev wants to change his policy towuzds China 1 e to become more the West and more handle to China he will want to get eomething from the United States end the West to lave face MI 14ch bed expressed similar View when here a few months ago The Chancellor eeldhemuetinallfranlcnese I believe the Moscow egreement was a great success for the United States The Treaty- hed been discussed that day in the Cabinet'and there had been I great deal of criticism of it He showed me a COPY of the German news- paper Denteche Zeinrng which Carried an article caressing the situation resulting from the Treaty as being I gain for the USSR The Chancellor - recommended the greatest poe tion in future negotiations with the Soviets following upon the Treaty 3134 en - - The Chancellor agreed that the West must keep strong he weenot oppoeed to discussions but believed we IIth be cautious As a result of the Test Ben said the Chancellor your partners will decrease their efforts The Norwegians and Belgian have already reduced the length of their military service Jill anyone make an effort if the Treaty is to he the of a new era Secretary McNamara acid that did not believe and had not said that the Treaty was the beginning of a new era He also pointed out that the Norwegian ind Belgian action had thine place before the Treaty The US end Germany were the main elements - in the Western Alliance and if they - 2H5 Mol 1 I '1 Ion AUGEI - 1 -m Soviets VICE OF THE UNITED STATES OF THE SER SEC -4- 11-250 August 2 1963 -Encloeur'e '1 make the necessary e ort - - 1 - they can p 111 elongthe otherl - The Chancel complacency would be increased by the Test Ben Treaty He wu afraid that the'neety would result in recognition of the Soviet Occupied Zone The term ltate used in the Treaty the most outspoken term which could be selected If an the Treety provides one third of the adherent cell or a conference a conference must be convened Thin might result in the two Germaniel facing each other which would imply reCOgnitim-I President Kennedy's visit to Berlin would he negated the German people would be shocked He hesitated to say whether Germany would accede to Secretary Chancellor that the Treaty did not imply recognition The USLGovernmen-t had made this very clear to the Sovietl By their own actions the US and Germany can make this clear to the world The Chancellor doubts He had asked Mr Tylei- what the United States would do ifthere an attempt to convene a meet- ing Any such action taken under international law the Chancellor con- tinued implied recognition Hit 841W fMdh a to it W'he Although he had it di 'icuit or Ilight changes in wot The Zeitung article to which he had referred earlier said mor over that the Treaty would her-ve to handicap the United States in the development of an en -mieeile missile Secretary McNamara replied that the Soviets were not ahead in the develepmont of en antl-mieeile missile The United States had in Kwajalein an island in the Paoiic anti-missile ray-stem that has inter- egted eororrl missiles from California He believes we sure ahead of the The problem is not one of nuclear warheada eoived only by additional tests but one of radar and decoy detectors 53% Hot mis t he was afraid the getter-IL hae an-s-e'o CLASSIFIED THE FOREIGN SERVICE OF THE UNITED STATES OF AMERICA -5- fr August 2 1963 Enclosure #1 5m He - Y repuested the'President's statement in the speech United States exposed its cities to save the German cities which he said proves our determination to deiend Germany We hurt oursele if we- weaken you Under no circumstances said the Secretary would the United Stetes teke actions which would here the effect of recognition East Germany The Chancellor asked if Secretary McNamara would ask Mr Rush to make a clarifying statement along these lines Mr McNamara replied that he would on Mr Rank Mr McNamara said hehed one more problem he wlehed to present to the Chancellor The United States in the light of its balance of payments problems just cannot continue the present rate elf-military expenditures abroad We have nlresdy token many concrete stepo to improve our position at recently reported by the President to the Congress We appreciate - greatly the aeolotence that Germany has rendered in the poet through offget purchases equipment It ll bowem _ absolutely essential we receive on offset the full amount of our dollar expenditures in Germany--$l 3 billion in the next two yearn not the $1 billion that has been suggested Von Hansel stated that although 3 billion over two years is the objective he doubted if not-cal this your could exceed $1 billion After 1965 he felt that were should be a new intergovernmental agreement between the two countries with respect to the future of the o net errmgement Secretary McNamara emphzuized once more that the United States wanted to leave it forces in Germany but will not be able to do so unless there is a continuing full offset agreement He said however that he and Minister von Hansel would discuss the matter further tomorrow The Chancellor made the parting remark You better get covered by someone roll Aa we parted Secretary McNamara paid tribute to the great contri- il'l 1 button the Chancellor had made to poet-war Germany and the Free rld i Bonn Inc WIFE                     National Security Archive    Suite 701  Gelman Library  The George Washington University    2130 H Street  NW  Washington  D C  20037    Phone  202 994‐7000  Fax  202 994‐7005  nsarchiv@gwu edu