Lot 122

Minutes of the Fourth Meeting of the Advisory Steering Committee on European Recovery Program, Washington, D.C., October 2, 19471
[Extract]
top secret

Approval of Minutes

1. Action; The minutes of the meeting of September 25 (M–3) were approved subject to the communication of any desired revisions to the Secretary.

General Objectives and Progress of Committee’s Work

2. Action: It was agreed that it would be advisable insofar as possible to keep the interim aid program distinct from the long-range program for European economic recovery. However, since there is a likelihood that the Congressional Committees will desire to consider aspects of the overall long-range program in conjunction with their consideration of the interim aid program, the Committee should work toward completion of the preliminary appraisal of the CEEC report and integration of the various aspects of a long-range program with the interim program within the next three weeks. To this end the Committee members would inform the Chairman of the various appraisal groups in their respective agencies of the above time schedule.

3. Discussion: The Chairman2 reported that, arising from the President’s conference with certain Congressional leaders on September 29, a decision was reached to call the four Congressional Committees to consider the question of interim aid to certain European countries early in November. Certain Congressional leaders have indicated that a possible interim aid program should be considered in relation to the overall long-range program, the reports of the various Congressional Committees surveying conditions abroad, the reports of the Harriman and Krug Committees and other pertinent information. The Committee’s previous thinking on a desirable pattern of Government action has been in terms of Executive action on the emergency phase carrying through December, Congressional action on the interim [Page 478] aid program carrying through March with action on the full-scale program to come at the end of Congressional authority for the interim period. However, in view of the above developments, it might be advantageous to be able to indicate to the Congressional Committees when they convene in November that the Executive branch has completed preliminary work on the basic principles of the full-scale program and that they can go forward with consideration of these aspects of the full-scale program while considering interim aid legislation. Therefore, the Committee should arrange its work so as to begin correlating the various aspects of the program during the next two weeks and place the appraisal groups on notice that a preliminary appraisal is to be completed within the next three-week period.

4. A question was raised as to the anticipated form of presenting the full-scale program to Congressional Committees, it being pointed out that work should commence immediately on the justification for the program. This material might include the CEEC report, the U.S. analysis of the CEEC report, reports of the Krug, Nourse and Harriman Committees, and other pertinent information. In this connection it was suggested that in the interest of expeditious action on the interim aid program it would be advisable to keep it distinct, insofar as possible, from the long-range program, since presentation of an interim program in a manner so as to make decisions on its merits dependent upon decisions on the long-range program would probably delay Congressional consideration of interim aid. Furthermore, it would be inadvisable to present a draft bill for an interim aid program directly to the Congressional Committees. The above suggestions were concurred in by the Committee.

[Here follows material relative to the interdepartmental groups appraising the CEEC report.]

  1. Representatives of the Departments of State, Army, Navy, Commerce, Interior, Treasury, Agriculture, the Federal Reserve Board, the Bureau of the Budget, and the White House were present at this meeting.
  2. Col. C. H. Bonesteel.