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Tolson 0-19 (Rev.12-9-66) DeLoach Mohr Wick Casper Callahan Conrad Felt Gale Rosen Sullivan Tavel Trotter Tele. Room Holmes Gandy The Washington Merry-Go-Round THE WASHINGTON POST Wednesday,March 20,1963 B U.S. Will Ask Chiang to Quit 2 Isles areas and have decided that millions could be saved by By [pulling back from the offshore islands. Jack ALL INFORMATION CONTAINED This possibility first came HEREIN IS UNCLASSIFIED Anderson up at a secret strategy meet- ing in Honolulu on Jan.11. DATE 05-23-2007 BY 60324aucbaw/rs/rds Robert Barnett, speaking for the State Department, com Iplained that the cost 'of de TAIPEI--In the strictest of,fending the islands was too secrecy, the United States is great a drain.. The Washington Post preparing to ask Chiang Kai- Saving Money shek to withdraw his troops Times Herald from the two offshore islands, Samuel Berger, presiding. The Washington Daily News warned that "a major U.S.pol The Evening Star (Washington) and 12 miles off the Chinese'of the heavy defense cuts." The Sunday Star (Washington) mainland. Following up this meeting. Daily News (New York) Chiang still dreams that,the Defense Department pre. Sunday News (New York) New York Post . also become springboards forjhow to cut Chiang's forces and. The New York Times World Journal Tribune |least has tied up Communistjislands, .concluded that they (New York The Sun (Baltimore) The Worker The New Leader vening in the Vietnam war. "Several substantial reduc! The U.S. is firmly opposed[tions could be made in GRC] The Wall Street Journal to any adventures The National Observer mainland but is officially com-[of China) naval forces were it mitted to helping Chiang de-[to.negotiate with the CPR! People's World fend the islands, as pro-(Chinese Peoples' Republic) an !&c Date 68 claimed in a secret State De-offshore island settlement,". partment national paper, dated Sept. 11, 1964. Naval savings alone, accord- the analysis, would gists would like to change the|amount to $5.2 million in fis- policy.They are compelled by|cal years 1969-73. Even more the demands of the Vietnammoney could be saved in war to put the squeeze on mil- ground and air forces.. itary expenditures in other The two divisions on the 72185 EMGLESURg