Effect Analysis of U.S. Military Aid to the Republic of Korea
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Calhoun: The NPS Institutional Archive Theses and Dissertations Thesis Collection 1989 Effect analysis of U.S. military aid to the Republic of Korea Choi, Tae Young Monterey, California. Naval Postgraduate School http://hdl.handle.net/10945/27005 S NAVAL POSTGRADUATE SCHOOL Monterey, California EFFECT ANALYSIS OF U . MILITARY AID TO THE REPUBLIC OF KOREA by Tae Young Cho i and Su Gyo Lee June 1989 Thesis Advisor: Richard A, McGonigal Approved for public release; distribution is unlimited i:>kL()^'^ UNCLASSIFIED SECURITY CLASSIFICATION OF THIS PAGE Form Approved REPORT DOCUMENTATION PAGE 0MB No 07040188 la REPORT SECURITY CLASSIFICATION lb RESTRICTIVE MARKiNGS UNCLASSIFIED 2a SECURITY CLASSIFICATION AUTHORITY 3 DISTRIBUTION /AVAILABILITY OF REPORT Approved for piiblic release; distribution DECLASSIFICATION/ DOWNGRADING SCHEDULE 2b is unlimited. 4. PERFORMING ORGANIZATION REPORT NUMBER(S) 5 MONITORING ORGANIZATION REPORT NUMBER(S) 6a NAME OF PERFORMING ORGANIZATION 6b OFFICE SYMBOL 7a NAME OF MONITORING ORGANIZATION (If applicable) Naval Postgraduate School 36 Naval Postgraduate School 6c. ADDRESS {City, State, and ZIP Code) 7b ADDRESS (Oty, State, and ZIP Code) Monterey, CA 93943-5000 Monterey, CA 93943-5000 8a NAME OF FUNDING / SPONSORING 3b OFFICE SYMBOL 9 PROCUREMENT INSTRUMENT IDENTIFICATION NUMBER ORGANIZATION (If applicable) 8c. ADDRESS (City, State, and ZIP Code) 10 SOURCE OF FUNDING NUMBERS PROGRAM PROJECT TAS^ vvork unit ELEMENT NO NO NO accession no 11 TITLE (Include Security Classification) Effect Analysis of U.S. Military Aid to the Republic of Korea (Unclassified) 12 PERSONAL AUTHOR{S) CHOI , Tae Young and LEE , Su Gyo 13a TYPE OF REPORT 3b TIME COVERED : DATE OF REPORT {Year, Month Da^) 15 PAGE COUN" Master's Thesis FROM TO June 1989 183 16 SUPPLEMENTARY NOTATION 17 COSATI CODES 18 SUBJECT TERMS '.Continue on reverse if necessary and identify by block number) FIELD GROUP SUB-GROUP U.S. -Korea Relations, Milita2ry Aid, Military Balance 19 ABSTRACT {Continue on reverse if necessary and identify by block number) During uhe last forty years, the U.S. and Korea have maintained a close and friendly relationship. Especially on the military side, the U.So has dedicated much to Korean military development o The UoS. has also played the role of constrainer to keep North Korea from attacking South Korea. On the other hand, because of Korean economic develo^ ment and improvement of its self defense capacity, that relationship has begun to change. So, through this paper, we will show the changing procedures of U^S. policy in aid to Korea including military support. Also, even though very few people think negatively about the U. So-Korean relationship, we will describe the need for continued U.S. assistan[:e to Korea; how it is in the interests of both countries to work together and to review what the U.S. has done for Korea, how they have changed, and what the future problem is most likely to be. 20 DISTRIBUTION AVAILABILITY OF ABSTRAC^ ABSTRACT SECURTv ClASS'^ iCATlO' BuNCLASSiF'ED'UNLiMiTED DSAMEASRP' Do'iCUSEPS UNCLASSIFIED 22a NAME OF RESPONSIBLE INDIVIDUAL 22b TELEPHONE (/nc/ude Area Code) 22c OFFICE S'^MBOl R. A. McGONIGAL (408)646-2186 54Mb DDForm 1473, JUN 86 Pre editions are obsolete Sr.CuRlTY ClASSFiCAI ijiv Ur S/:\ .i02-LF-01A-6603 Approved for public release; distribution is unlimited, Effect Analysis of U.S. Military Aid to the Republic of Korea by Tae Young phoi Major, Republic of Korea Army B.A., Korea Military Academy, 1981 and Su Gyo Lee Captain, Republic of Korea Army B.A., Korea Military Academy, 1983 Submitted in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE IN MANAGEMENT from the NAVAL POSTGRADUATE SCHOOL June 1989 ABSTRACT During the last forty years, the U.S. and Korea have maintained a close and friendly relationship. Especially on the military side, the U.S. has dedicated much to Korean military development. The U.S. has also played the role of constrainer to keep North Korea from attacking South Korea. On the other hand, because of Korean economic development and improvement of its self defense capacity, that relationship has begun to change. So, through this paper, we will show the changing procedures of U.S. policy in aid to Korea including military support. Also, even though very few people think negatively about the U.S. -Korean relationship, we will describe the need for continued U.S. assistance to Korea; how it is in the interests of both countries to work together and to review what the U.S. has done for Korea, how they have changed, and what the future problem is most likely to be. 3.11 CI TABLE OF CONTENTS I. INTRODUCTION 1 II. METHOD OF STUDY AND ORGANIZATION 4 . III. THE DEVELOPMENT OF THE U . S -KOREA SECURITY RELATIONS 7 A. GENERAL. 7 B. U.S. SECURITY INTERESTS & OBJECTIVES IN KOREA 8 C. U.S. MILITARY AID TO KOREA 10 1. Occupation, and U.S. Disengagement (1945-50) 10 2. The Korean War and U.S. Reinvolvement (1950-68) 13 3. Detente, Interdependence, and U.S. Retrenchment (1969-79) 27 4 . Korea and Carter, Reagan Administration 40 C. THE TRANSITION OF THE U.S. MILITARY AID TO KOREA. 42 1. MAP Grant Aids 43 2. IMET 4 6 3. FMS. 4 9 IV IV. THE POSTWAR U.S.- ROK ECONOMIC RELATIONS ... 53 A. THE UNILATERAL AID PERIOD (1945-61) ... 53 1. The Foreign Aid Program (1945-53) . 61 2. The Post-War Period (1953-61) .... 65 B. THE BILATERAL TPJ^DE PERIOD ( 1 962-PRESENT) 66 V. SIGNIFICANCE OF KOREAN PENINSULA 73 A. GEO-POLITIC IMPORTANCE OF KOREAN PENINSULA 73 1. Korean Peninsula as a Central Location 74 2. Korean Peninsula as a Etape Location . 75 3. Korean Peninsula as a Base Location . 75 4. Korean Peninsula as a Land-Bridge Location 76 5. Korean Peninsula as a Buffer Location 76 B. POWER BALANCE BETWEEN NORTH AND SOUTH . 77 1. South Korea's Effort to Get a Balance of Power 77 a. Milestone for a New Military Build Up 7 8 b. Investment for Military Reinforcement 78 c. Defense Budget 81 d. Acquisition Status 81 e. Effort Improving Domestic Production Ability 85 V 2. Power Balance Between the South and the North 85 a. Weapon System Model 85 b. The Military Force of the South and the North 88 c. Comparison of Military Expansion Between the South and the North . 8 9 3. Arms Transfer Tendency and North Korean Bellicosity 93 a. Comparison of Arms Transfer between South and North 93 b. Bellicosity of North Korea .... 96 C. SOVIET MILITARY EXPANSION IN THE FAR EAST 98 1. Soviet Foreign Policy in the Far East 98 a. Sino-Soviet Relation 98 b. U.S. -Soviet Relation 100 c. Japan-Soviet Relation 100 d. Soviet-North Korea Relation . 102 e. Soviet General Foreign Policy . 103 2. Soviet Military Expansion in the Far East 104 a. Trend of Military Expansion . 104 b. U.S. Response to the Growing Soviet's Military Expansion in the Far East 107 c. The South Korean Response .... 108 VI VI. THE ROLE OF U.S. FORCES IN KOREA 110 A. WAR RESTRAINT 110 B. MILITARY INTELLIGENCE SUPPORT 113 C. MAINTAINING THE POWER BALANCE AGAINST SOVIET IN THE FAR EAST 114 D. ROLE OF CONSTRAINING JAPAN'S MILITARY REBUILT 116 . VII. THE PRESENT QUESTION BETWEEN U . S -KOREA . 117 A. HISTORICAL BACKGROUND OF U.S. FORCES IN KOREA 117 B. BURDEN SHARING 118 C. U.S. TROOP WITHDRAWAL 122 D. THE COMMANDING RIGHT 125 VIII. CONCLUSION . 127 APPENDIX A - U.S. SECURITY ASSISTANCE TO THE REPUBLIC OF KOREA 130 APPENDIX B - CATEGORY AND PERCENTILE ANALYSIS BY TYPES OF DEFENSE ARTICLES AND SERVICES WEAPONS ANALYSIS REPORT FOREIGN MILITARY SALES AND GRANT AID (MAP/IMETP) PROGRAMS 131 APPENDIX C - COMPARISON OF MILITARY BUILD-UP BETWEEN SOUTH AND NORTH KOREA 145 APPENDIX D - MAJOR API^S TRANSFERS TO THE SOUTH AND NORTH KOREA, 1950-1979 154 LIST OF REFERENCES 163 BIBLIOGRAPHY 169 INITIAL DISTRIBUTION LIST 170 Vll LIST OF TABLES TABLE 1. U.S. MILITARY ASSISTANCE TO THE EAST ASIA AND THE ROK, 1949-1968 16 TABLE 2. U.S. ECONOMIC AND MILITARY ASSISTANCE TO KOREA (1955-67) 20 TABLE 3. U.S. ARMS SUPPLIES TO SOUTH KOREA, 1950-1968 22 TABLE 4. RELATIONSHIP OF U.S. ECONOMIC AID TO SOUTH KOREAN GNP 2 5 TABLE 5. MILITARY ASSISTANCE PROGRAM AND FOREIGN MILITARY SALES TO SOUTH KOREA 1968-1977 . 2 9 TABLE 6. U.S. SECURITY ASSISTANCE TO SOUTH KOREA, 1971-1975 32 TABLE 7. AID-FINANCED IMPORTS RELATIVE TO TOTAL IMPORTS, 1969-1975 33 TABLE 8. NORTH KOREAN DEFENSE EXPENDITURES 36 TABLE 9. SOUTH KOREAN DEFENSE EXPENDITURES 38 TABLE 10. U.S. SECURITY ASSISTANCE PROVIDED TO SOUTH KOREA UNDER ITS MODERNIZATION PLAN 1971-75 . 41 TABLE 11. U.S. ECONOMIC ASSISTANCE TO SOUTH KOREA . 54 TABLE 12. COMPARISON ON OUTPUT VALUE OF MINING AND MANUFACTURING IN SOUTH AND NORTH KOREA BEFORE AUGUST, 1945 58 TABLE 13. ROK DEFENSE EXPENDITURES, 194 9-1955 .... 60 TABLE 14. FOREIGN ECONOMIC AID RECEIVED BY KOREA, 1945-1980 62 TABLE 15. SUMMARY OF ECONOMIC AND MILITARY ASSISTANCE TO SOUTH KOREA FROM THE UNITED STATES ... 63 vi ii 71' TABLE 16. SUMMARY OF EXPORTS AND IMPORTS, 1952-81 . TABLE 17. BUDGET SIZE FOR BRANCH 79 TABLE 18. BUDGET RATIO FOR EACH BRANCH 80 TABLE 19. INCREASg OF DEFENSE BUDGET 82 TABLE 20. ACQUISITION DATA 83 TABLE 21. ACQUISITION STATUS FROM FOREIGN COUNTRY . 84 TABLE 22. DOMESTIC PRODUCTION CAPABILITY FOR ARMS . 86 TABLE 23. COMPARISON OF THE MILITARY FORCE OF SOUTH AND NORTH KOREA 90 TABLE 24. POWER RATIO BETWEEN SOUTH AND NORTH .... 91 TABLE 25. POTENTIAL RATIO INCREASING TREND 92 TABLE 26. NUMBER OF NORTH KOREA'S AGAINST ARMISTICE .