894.50/4–2348
The Secretary of the Army (Royall) to the Acting Secretary of State
Dear Bob: Thank you for your letter of 8 April 19481 advising me that the Department of State will give unqualified support to the Department of the Army’s request for appropriation of funds for rehabilitation in Japan, Korea and the Ryukyus.
It is noted that the Department of State and this Department are in agreement with respect to the legislation which should be pressed for passage by the Congress, i.e., that each Department prefers the passage of the general enabling legislation covering the entire program for occupied areas. However, the draft of the bill inclosed by you is not the latest draft agreed upon by our respective representatives. In order that there may be a record of our understanding I inclose a copy of the latest draft for your file.1 The difference in your draft and the latest draft is underscored on the inclosure in order than you may readily note the changes. The change with respect to the RFC and coordination, etc., with the Administrator for Economic Cooperation were inserted at the insistence of staff members of the House Foreign Affairs Committee.
I also inclose a copy of a re-draft of the bill dealing with the request for an appropriation of $275,000,000 for rehabilitation in Japan, Korea and the Ryukyu Islands which has been reduced to $220,000,000 covering a twelve-month period following the passage of the bill.1 It has also been changed to authorize and direct the RFC to make advances not exceeding $40,000,000 to carry out the purposes of this act. The purpose of this re-draft is to comply with the request made by staff members of the House Foreign Affairs Committee who desire an alternate bill in the event favorable action is not given to the more comprehensive bill. I am informed that our Departments are in agreement on the technical language of this latter bill and the fact that it should be enacted only in event of failure of the passage of the broader enabling legislation.
I am also informed that since the receipt of your letter representatives of both our Departments have discussed with members of the House Foreign Affairs Committee the best strategy for obtaining early [Page 969] action on this legislation. However, it may be necessary to have additional consultations with the committees concerned with these bills.
I appreciate very much the cooperation of your Department and hope that together we may obtain early action in respect to the foregoing.
Sincerely yours,