895.50 Recovery/8–1948

The Acting Director of the Budget (Pace) to the Under Secretary of State (Lovett)

top secret

My Dear Mr. Lovett: In accordance with our agreement today, I am enclosing1 for your comment a proposed memorandum from the President to the effect that economic assistance to Korea shall be undertaken by the Economic Cooperation Administration on January 1, 1949 or in no event later than March 15, 1949. Enclosed likewise for your comment is a proposed press statement of the President.

Because of the top secret nature of the timing for the transfer and the inadvisability of actual transfer at this time, it seems to me on further reflection that a classified Presidential memorandum and a simple public announcement will accomplish all the purposes you have in mind at this time, and that the memorandum can be followed at a later date by the formal Executive order.

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I congratulate each of you on the fine spirit of cooperation which made possible our prompt agreement this morning.

Sincerely yours,

Frank Pace, Jr.
  1. Enclosures not attached to file copy. Marginal notations indicated that changes suggested by the Department were accepted by Mr. Pace on August 20.