800.24/7–2448
The Secretary of State to the Secretary of the Army (Royall)
Dear Mr. Secretary: I refer to your letter of July 24 with regard to the relative priorities to be accorded certain countries which are receiving or are about to receive military supplies from the United States under the terms of foreign aid programs.
An over-all determination of priorities anticipating inter-Departmental agreement is now in process. Pending completion of this study it is my opinion that priorities for existing military assistance programs for the five countries specified in your letter should be in the following order: Greece, Turkey, Iran (present commitments only), China, Argentina. Present commitments to Iran are understood to include the repair, packing and shipment of items already declared surplus and allocated to that country.
Every effort should be made to meet the most urgent Chinese requests under the 125 million dollar grants. In view of the imminent completion of the Iranian program, the foregoing order of priorities accords a high priority to China immediately following that of Greece and Turkey. It is suggested that these high priority projects may be implemented concurrently. I am told that many of the Chinese requirements do not conflict with Greece and Turkey items. Furthermore the progress of the campaign in Greece and season of the year matériel would be delivered in Greece may warrant a decision in favor of China for some items in which a dual requirement exists. In cases [Page 136] of clear conflict with regard to urgently required matériel, preference should be given to Greece and Turkey.
If the Secretary of Defense concurs in these priorities, they may be considered as agreed upon priorities of this Government for these five programs.
Your letter indicates that the revision of present priorities is necessitated by civilian personnel ceilings imposed on the Department of the Army. With respect to the civilian personnel ceilings imposed by the Byrd Law, it is suggested that consideration be given to the provisions of paragraph 104 (e) of the Economic Cooperation Act of 1948, the pertinent section of which is quoted herewith:
“(e) Any department, agency, or establishment of the Government (including, whenever used in this title, any corporation which is an instrumentality of the United States) performing functions under this title is authorized to employ, for duty within the continental limits the United States, such personnel as may be necessary to carry out the provisions and purposes of this title, and funds available pursuant to section 114 of this title shall be available for personal services in the District of Columbia and elsewhere without regard to section 14 (a) of the Federal Employees Pay Act of 1946 (60 Stat. 219).”
Faithfully yours,