886.00 TA/11–3050: Circular telegram

The Secretary of State to Certain Diplomatic and Consular Offices 1

confidential
top priority

214. Dept contemplating asking Congress for grant aid program totaling $500 million for FY52 of which Asian states to receive greater proportion. Dept urgently requests by Dec 15 comments and suggestions Embs and Legs for programs Arab States and Israel. Dept meanwhile developing first draft program on basis material at hand.

Decision taken request $25 million grants for Arab States and Israel for tech assist, including supplies and equipment. Latter expected constitute much larger proportion total than in FY51 Pt 4 program. Capital improvements contemplated only (a) where security and polit factors require very rapid development and (b) other means financing not immed available. For NE countries capital improvements admissible only where tightly justified under these criteria.

Expenditures probably to be concentrated where optimum benefits to be expected. Emphasis to be on “grass roots” projects to raise standards greatest number population. Emphasis to be placed on urgency of needs balanced by capacity bear local costs, and on this basis some countries may receive proportionately larger share aid.

Data required include project description, costs and realistic appraisal ability willingness Govt implement such projects. Programs to be feasible and appropriate as, for example, plans already developed by Govt to which you are accredited or by private orgs but not active because of lack wherewithal.

Missions shld not discuss amts money possibly available in sounding local officials re projects and shld not create impression program firm.

Acheson
  1. At Arab capitals and Tel Aviv.