880.00–TA/8–1250: Circular telegram

The Acting Secretary of State to Certain Diplomatic and Consular Offices 1


Pres sig 34.5 million appropriations for overall Pt IV program FY 51 enables you now to inform govt to which accredited that you prepared receive its proposals for US bilateral technical aid projects and give all possible-assistance preparing them for transmission Dept in sufficient detail permit prelim appraisal here. For ur guidance Dept considering fol tentative working estimate (target figures) for FY 51 funds for each SOA country: India $1.2 million; Pak $600 thousand; Ceylon $100 thousand; Afghan $50 thousand; and Nepal $50 thousand.

In ur discretion you may mention to local govt approx amt available for country to which accredited without re to tentative figures for any other countries. In discussions with local govt dept prefers you translate amt available in terms of services to be supplied counting approx annual cost one US expert at $15 thousand and one SOA trainee to US at $4 thousand. Indicate that small amts machinery, equipment, publications can be made available only in connection with demonstrations or training projects and that local govts, as hitherto, are expected bear certain local costs payable in their currencies. Emphasize that real significance any program is not dollar amt but promise of contributing to econ development, stimulating both domestic and fon investment and furthering objectives Pt IV statute.

For planning purposes Dept wld appreciate Embs views re priorities of projects in light local conditions. You are authorized open conversations with local govt, forward project proposals expeditiously with indication ur judgment (as well as that of local govt) re priorities, and inform local govt that some form of public agreement or informal exchange of notes will be necessary before actual initiation Pt IV program.

Individual projects comprising proposed program shld be listed or at least grouped in accordance priority, but program shld be comprehensive even if clearly exceeding dimensions above indicated. This wld not preclude prompt Dept consideration individual high priority projects (1) urgently desired by local govt and (2) strongly supported by US mission if such projects are closely related to country’s own development program (as in case of projects already begun or proposed). Dept suggests you welcome initial proposals with aggregate estimate cost double the above tentative working estimates because [Page 866] (1) such info needed to shape requirements for next FY and (2) possibility that funds lapsing this year (owing to delays in recruitments and appts) will permit actual allocation somewhat larger than present provisional planning figure. Dept will of course approve projects only up to amt of funds clearly available at any given time.

As more time will be needed to obtain US experts than to select local trainees, you might over-program more heavily in respect to experts. Trainee grants may be committed in full before close of FY for subsequent disbursement through two more FYs. Pt IV law requires all US experts have FBI clearance which usually takes three months.

Dept wishes publicity originated by Embs to be restrained, in conformity with modest amts available, and hopes Emb will be able guide local govt publicity so as not to arouse unduly high expectations.

Further instrs re (1) relationship between UN technical aid and US bilateral programs (2) form of bilateral agreement with local govt (3) possible estab joint comms (4) ur previous recommendations together with those of Dept and other agencies, and (5) other matters will follow, but steps outlined here shld be taken immed in Embs discretion.

Inform if additional copies PL 535 (Pt IV enabling legis) needed by Emb.2

This cable sent Kabul for info only as it is not desired that Afghan Govt be approached until Emb clarifies status and effectiveness present UN mission.

Replies this cable shld be pouched other addressees.

  1. Sent to the Embassies at New Delhi, Karachi, Colombo; repeated to Kabul.
  2. Substantially the same message was sent to the Embassies at Cairo, Jidda, Baghdad, and Tel Aviv and to the Legations at Beirut, Damascus, and Amman, with variations to make provision for allotments in Point IV monies for the countries concerned as follows: “Egypt, $250,000; Iraq, $200,000; Saudi Arabia, $150,000; Syria, $150,000; Lebanon, $100,000; Yemen, $50,000; and Jordan, $50,000.” (circular telegram, September 12, 1950, 9 a. m., 880.TA/9–4250) This text also pointed out that allotment to these countries under the United Nations technical assistance program “because of large US contribution, may be double that of US bilateral program. US Pt IV law emphasizes that a country should use UN aid wherever feasible.” Also, the Department indicated that in respect of the Arab States the United States was interested in the possibility of using bilateral funds for coordinated projects under the auspices of the Arab League.