811.24/1044
The Secretary of State to the Acting Director of the Budget (Bell)
My Dear Mr. Bell: I am glad to acknowledge the receipt of your letter of March 19, 1936, enclosing a copy of H. R. 11001, a bill to provide for certain purchases of minerals, and a copy of a proposed report by the Secretary of War on this bill. In response to your suggestion I offer the following comments on this proposed legislation.
The Department of State is in agreement with the objectives of the proposed bill not only because adequate stocks of the minerals enumerated in the bill would appear to be necessary in connection with preparedness for possible national emergencies but also because it is believed that possession of these stocks would be in line with the foreign policies of this Government in time of peace.
[Page 604]I find it impossible, however, to support the bill under consideration in its entirety. The acquisition of stocks of minerals from foreign countries by the methods authorized by the bill would raise questions of policy relating to the whole field of the foreign relations of this Government and in all probability would have a direct effect upon the international commercial policy of the United States and upon the policy of the Government with respect to the obligations of foreign Governments to the United States arising out of the World War.2 Therefore it appears to me that the bill does not make adequate provision for the direction of negotiations in connection with the purchases authorized and does not provide in any way for a method of coordinating policy relating to these purchases with other foreign policies of this Government.
In my opinion the bill would be much improved if it authorized the President to acquire these stocks and provided for the creation of a special interdepartmental committee, either to advise the President with respect to policy and to supervise the purchases authorized by the bill, or at the direction of the President to carry the full responsibility for the negotiations incident to these purchases. I believe that this committee should function under the chairmanship of a representative of the Department of State and should include in addition representatives of the War Department, the Navy Department, the Department of Agriculture, and the Treasury. It may be that the quantities and kinds of commodities authorized under the provisions of this bill could not be acquired from foreign countries by the extension of credits on their national debts to the United States arising out of the World War or by exchange of agricultural commodities owned by the Federal Government. In this event, the interdepartmental committee which I have suggested would be of value as an appropriate agency for a study and analysis of the situation as a basis for recommendations to the President and to Congress with respect to appropriations for cash purchases authorized by the bill.
I should agree with the Secretary of War that it would be desirable to so word the bill that the Secretary of War should be charged with the responsibility of determining the quantities and the specifications of the minerals to be acquired. Furthermore, I believe that Section 2 and Section 4 of the bill as drafted are wise, placing with the Secretary of War full authority and responsibility for providing storage of the stocks acquired and for controlling the use of such stocks.
The suggestions I have made in this letter have been fully discussed with the War Department. The Secretary of War is in agreement with them, and ready to support them, if consulted.
Sincerely yours,