895.50 Recovery/8–2548

Memorandum by President Truman to the Secretary of State 1

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Subject: Transfer of Responsibility for Economic Aid to Korea

I believe the administrative arrangements necessary to provide for uninterrupted economic assistance to Korea under the provisions of the Foreign Aid Appropriation Act, 1949, following the cessation of our occupation of that country, should be defined now. Accordingly, I direct as follows:

Such assistance shall continue to be furnished by the Department of the Army until I am advised by the Administrator of Economic Cooperation2 that he is prepared to undertake this program.
The Administrator for Economic Cooperation should be prepared to assume the responsibility for such assistance at an early date—if possible by January 1, 1949, or in no event later than March 15, 1949.
Planning for the transfer of this responsibility should begin at once, and should be conducted jointly by the ECA and the Department of the Army, with such assistance as may be required from the Department of State. That planning should be designed to assure the uninterrupted flow of assistance during the period of transfer of responsibilities to ECA and the most effective furnishing of assistance thereafter.
The Secretary of State, in addition to his responsibilities under Report NSC VIII of the National Security Council, shall, after consultation with the Administrator for Economic Cooperation, proceed to negotiate an appropriate agreement with the Government of Korea as required by the Foreign Aid Appropriation Act, 1949.
Should further economic assistance be required for Korea after June 30, 1949, the Administrator for Economic Cooperation shall initiate the necessary legislation and appropriation estimates.
At the time of the transfer of responsibility from the Department of the Army to the Economic Cooperation Administration, the Director of the Budget shall take such action as may be required to place at the disposal of the Administrator for Economic Cooperation the funds available for economic aid to Korea appropriated under the Foreign Aid Appropriation Act, 1949.

I am sending an identical memorandum to the Secretary of the Army and to the Administrator for Economic Cooperation.

Harry S Truman
  1. The substance of this memorandum was reported in telegram 303, August 25, 5 p. m., to Seoul; for press release contained therein, issued August 26, see Department of State Bulletin, September 5, 1948, p. 301.
  2. Paul G. Hoffman.