167. Memorandum From the President’s Special Assistant (Rostow) to President Johnson1

Mr. President:

This is a probably reliable report of an Erhard backgrounder.

From all evidence, Erhard is a man with a dilemma and no plan to get out of it.

[Page 408]

We must lead him out.

We are working hard—State, Treasury, Francis—to have a plan ready.

Walt

Attachment2

The following is the text of a [less than 1 line of source text not declassified] report on off-the-record comments made by Chancellor Erhard at a press conference. [1–1/2 lines of source text not declassified]

Begin report:

In an off-the-record press conference held in Bonn on September 8, Chancellor Ludwig Erhard told a small group of selected West German and West Berlin journalists that he does not anticipate that the agenda for his forthcoming visit to Washington will “provide enough time” for a discussion of German involvement in a possible future MLF. In any event, said the Chancellor, the West Germans would be willing to discuss such a force only if the concept were completely different from any that has thus far been advanced. In the meantime, Bonn will press its case for a fight to defend German soil against atomic attacks by an appeal to “international public opinion.”

When a further discussion of West German involvement in the Western defense strategy centered upon the matter of offset payments, Erhard evinced a degree of firmness bordering on the belligerent. He conceded that it behooves the Germans to appreciate the balance of payments problems with which the U.S. is confronted. Nonetheless, he said, U.S. Defense Secretary McNamara’s “demands” in the area of offset payments are “completely arbitrary” and must be categorically rejected. Asked whether he would display this attitude during his forthcoming visit to Washington, the Chancellor replied emphatically—“You can bet on that.”

(Source comment: Although it was clearly understood by all the participants that the Chancellor was not to be quoted, Erhard went to great pains to re-emphasize this point on several occasions during the course of the press conference.)

  1. Source: Johnson Library, Bator Papers, Erhard Visit September 1966. No classification marking.
  2. Secret.