The Secretary of State to President Truman
Memorandum for the President
Subject: Progress Report on Point IV
A. Policy Definition
I. A general policy paper entitled “Objectives and Nature of the Point IV Program” has been prepared in close collaboration with an Interdepartmental Advisory Committee and the twenty-six agencies active in the field. It is attached for your approval.
II. Detailed policy statements are being prepared and reviewed on the following additional problems:
- Measures to foster the international flow of investment capital. The National Advisory Council has been asked to develop recommendations on this subject. A paper pointing up the relationship of capital investment to technical cooperation is attached for your information.1
- Geographic scope of the program: definition of “underdeveloped” and “peace-loving”.
- Choice of bilateral, regional or United Nations arrangements, and methods of coordinating all programs supported by this Government or by other governments.
- Commitments to be required before undertaking technical cooperation activities or measures to foster the flow of capital investment.
- Relationship of governmental and private activities in the technical cooperation field.
- Procedure for expanding work of United Nations and Specialized Agencies in technical cooperation field.
B. Detailed Program of Technical Cooperation
I. With the cooperation of the other agencies and departments experienced in this field, we are preparing the detailed proposal for technical cooperation activities to be submitted for your approval and for transmittal to Congress. This proposal will be based on:
- Study of programs now in operation.
- Study of programs which the various agencies believe can be readily expanded.
- Study of needs and potentialities for economic development of various countries.
It is not planned to ask foreign governments or the United Nations and its related agencies to submit formal requests for support of technical cooperation programs before presenting a proposal to Congress. The program presented to Congress, therefore, will be illustrative of the needs and possibilities of technical cooperation activities, rather than a final program whose detailed projects Congress would be asked to approve.
II. At the same time, a study is being made of private activities in the international interchange of technical knowledge and skills; of the methods whereby governmental measures can encourage and facilitate private activities, and of the methods of obtaining coordination and mutual reinforcement of private and governmental activities in this field.
A plan of organization will shortly be submitted for your approval, along the following lines:
- The organization would be granted broad powers to carry out programs of technical cooperation, and would be authorized to use the facilities of the Government agencies as required. It would be responsible for central planning and management of the program and for its coordination and integration with other programs, and it would be accountable for the success of the program.
- Funds would be appropriated to the President to be allocated through this organization to the various United States and multilateral program activities.
- This central management organization would have available to it interdepartmental machinery for periodic high-level review and evaluation of the administration of the program.
D. Legislative Action
Review is under way of (1) existing legislative authority, pursuant to which existing technical, scientific and cultural exchange programs are being carried out and can be expanded; and (2) the necessity for new legislative authority to carry out an integrated and expanded program of technical cooperation for economic development. A draft of proposed legislation is being prepared.
E. Consultation with Private Groups
Advice in the development of the program is being obtained from private groups in the following ways:
- A series of conferences with individuals and organizations having special experience and competence in this field is being carried out.
- A general conference of interested private individuals is being held on March 19.
- The appointment of an Advisory Committee on Technical Cooperation, of from eight to twelve members, is being actively considered.2
F. Consultations with Congressional Leaders
The Department of State proposes to initiate consultations with Congressional leaders on this technical cooperation program as soon as the present memorandum receives the President’s approval.3
- Not attached to file copy. Drafts of this and other papers named here are found in the unindexed lot files of the Department of State, Lot 122, Box 34 (15585). President Truman’s message of approval cited in footnote 3, p. 776, suggests that only one paper was attached to this memorandum.↩
- Not to be confused with the interdepartmental committee ACTA.↩
- Approved by President Truman on April 21, 1949, in a memorandum of that date in which he wrote to the Secretary of State as follows: “I have your memorandum of March 14, 1949, enclosing the policy paper ‘Objectives and Nature of the Point IV Program.’ [New Paragraph] The policies enunciated therein are in accordance with my concept of the program and I herewith give my approval to same.” (800.50 T.A./4–2149)↩
- The attached policy paper was first considered and approved by the Advisory Committee on Technical Assistance (ACTA), after several revisions, and then submitted to the Executive Committee on Economic Foreign Policy. There was preliminary discussion by the ECEFP on February 18 with more discussion and final approval as ECEFP Doc. D–21/49 on March 1; minutes of the ECEFP meetings are found in Lot 122, Box 22 (15572). After approval by President Truman on April 21, 1949, the paper was transmitted by the Secretary of State on April 27 to the following cabinet officers and agency and commission heads: the Secretary of Defense; the Attorney General; the Secretaries of Agriculture, Commerce, Interior, and Labor; the Chairman of the U.S. Tariff Commission; the Director of the Bureau of the Budget; the Chairmen of the Securities and Exchange Commission; the Federal Reserve Board; the Export-Import Bank; the National Security Resources Board; the Interstate Commerce Commission; the Administrator of the Federal Works Agency; the Chairman of the U.S. Maritime Commission; the Administrator of the Housing and Home Finance Agency; the Chairmen of the Federal Communications Commission and the Civil Aeronautics Board; the Administrator of the Federal Security Agency; the Chairman of the Council of Economic Advisers; the Administrator of the Economic Cooperation Administration; the President of the Institute of Inter-American Affairs; the Administrator of the Civil Aeronautics Administration.↩