840.50/617

Memorandum by Assistant Secretary of State Acheson to Assistant Secretary of State Berle

Mr. Berle: I have been over the questions of the Soviet Ambassador and your answers. I have a few explanatory observations for your consideration in talking with the Ambassador.

1. Where is the seat of the organization to be?

You are right that this is still open. However, in the interdepartmental discussions it has been assumed generally that the first meeting would be held in Washington and that that meeting would establish the seat in Washington.

2. Where is the Director General to function?

This also is open but it has also been assumed in our discussions that he will function from Washington.

3. Is the Director General to be chosen from among the members of the four great powers or should he be an outsider?

While this is not expressly provided for, it has been assumed that the Council would select a full-time official who would not be one of the representatives of the four great powers upon the Council. The British and, I believe, the Russians have suggested that he be an American. We have assumed in our discussions that the Council will select the person whom the President of the United States indicated would be the one most acceptable to him.

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4. Would the Director General sit on the (Policy) Committee and vote?

The draft provides that he shall preside over the Policy Committee. This means that he would not vote.

5. What powers would the Regional Committees have, advisory or active?

Article III, paragraph 4 provides that the Regional Committees shall advise the Council and in the intervals between the sessions of the Council shall advise the Policy Committee. It is not contemplated that the Regional Committees shall have administrative functions.

6. Would the Committee heads be elected or appointed?

You are correct that this is still open. I assume however that as a practical matter the Policy Committee would in nominating the Committees designate the chairman.

7. As to the standing committees, what members should be on them?

So far as the Regional Committees are concerned, the draft provides that the Policy Committee shall appoint members of the Council or their alternates representing the member governments directly concerned with problems of relief and rehabilitation in the area. We have construed this to mean that representatives upon the Council of all countries located geographically within the area shall be appointed on the Regional Committee for that area. The Policy Committee has discretion as to including representatives from outside the area whose countries by reason of being suppliers, etc., may be directly concerned.

8. Should the subcommittees be subordinate to the Central Committees or the Regional Committees?

The draft provides in Article III, paragraph 4 “should a Regional Committee so desire, subcommittees of these technical standing committees should be established to advise the Regional Committees.” This means, as you told the Ambassador, that the subcommittees report to the Central Standing Committee but they advise the Regional Committees.

9. How many alternates might the Director General have?

I presume that the Ambassador means how many Deputy Directors General may he appoint. There is no limitation.

10. Might the alternates be members of the Council?

I assume that here alternates refers to Deputy Directors General. It was not contemplated in our discussions that a member of the Council would be appointed as a Deputy Director General, but there is nothing to prevent this should it be desired.

11. Who would determine the sums which might be required of the local governments,—the Regional Committee or the local governments themselves?

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This, as you told the Ambassador, would have to be worked out between the Director General and the local government, but I think that you are entirely right in saying that the ultimate authority resides and must reside in the local government.

You were also quite correct in informing the Ambassador that both draft #1 and draft #2 are American drafts. While the Interdepartmental Committee has had the benefit of discussions with Sir Frederick Leith-Ross, he has not as yet consulted his government, which is in the same position as the Chinese and Russian Governments in respect to the draft; that is, it has not considered the draft or expressed any governmental opinion upon the provisions.

Dean Acheson