Foreign Relations of the United States, 1950, National Security Affairs; Foreign Economic Policy, Volume I

FMACC Files¹

Policy Paper Approved by the Foreign Military Assistance Coordinating Committee²

confidential

[Washington,] February 13, 1950.

FMACC D–4

Subject: Development of FY 1951 Mutual Defense Assistance Program (MDAP)

1. The FY 1951 MDAP will be developed under the direction and guidance of the FMACC in accordance with basic national policies and such instructions as may be provided from time to time by the Steering Committee. The recommended policies and programs developed thereunder will be approved as necessary by the Steering Committee, the National Security Council and the President.

2. In developing the policies, programs and legislation for FY 1951 and in presenting them to the Budget Bureau and Congress, the FMACC will be assisted by the following subordinate working groups:

A. Policy and Programming Working Group

B. Legal and Legislative Working Group

C. Budget and Fiscal Working Group

D. Public Information Working Group

These groups are to be constituted immediately and initial meetings should be held at once. They will consist of one representative each from the Department of State (chairman), the Department of Defense and the ECA. From time to time, as appropriate, representatives of other agencies may be participants in the activities of the working group but will not be members thereof. The working groups may establish and be assisted by such subordinate working groups as may be required.

The designation of agency representatives to serve on these working groups should be communicated to the Secretary of the FMACC concurrently with the approval of this paper. The chairman of each group will be responsible for the preparation and presentation to the Director, MDAP and to the members of the FMACC, of a weekly status report of the progress being made by his group. This report will be required in addition to the specific reports required by the terms of reference. The chairman may also recommend to the FMACC, from time to time, such changes in the directives applicable to his group as appear to be necessary or desirable.

In view of the tightness of the time schedules imposed, it is essential that inter agency differences which cannot be quickly resolved at working group level be promptly, factually reported to the FMACC for resolution. The chairman of each group will be responsible for doing so.

3. The Policy and Programming Working Group should keep clearly in mind throughout its work the distinction between basic concepts, plans to carry them out and definitive programs in support of those plans. It is responsible for:

(a) The development of the basic policy paper for the FY 1951 program.

This paper [is?] to indicate the basic concepts underlying military assistance, the general policies relating to the program, the purposes and objectives of country programs, relative priorities of the country programs, and criteria to be followed in developing programs. This paper is to be submitted to the FMACC for approval not later than 20 February 1950.

(b) Development of pricing policy for the FY 1951 program. Recommended revisions to the pricing policy adopted for the FY 1950 program are to be submitted to the FMACC by 20 February.

(c) Development of tentative FY 1951 country programs.

Country programs should indicate the purpose, nature and scope of the individual country programs and should estimate the types and amounts of equipment (by Service), the source of equipment (excess, stocks requiring replacements, new procurement), and the dollar costs involved. Programs are to be based on policies developed in accordance with sub-paragraph (a) above and on data which are available currently to U.S. agencies in the United States and overseas regarding requirements of contemplated recipients. Tentative programs are to be submitted to the FMACC by 28 February.

(d) Development of refined country programs.

Programs developed in accordance with sub-paragraph (c) above, should be refined as necessary in light of North Atlantic Treaty activities and discussions with U.S. country and regional organizations as appropriate. These programs are to be in sufficient detail to meet the requirements of the Bureau of the Budget and the Congress for presentation purposes. Programs should be submitted to the FMACC not later than 20 March 1950.

(e) Development of tentative training program.

This program to indicate the recommended training programs which should be undertaken in furtherance to the material programs which are proposed for the 1951 program, tentative programs to indicate general policies, nature of training, number of personnel to be trained and estimates of dollar costs. Tentative programs to be submitted to the FMACC for approval 20 March 1950.

(f) Developing a tentative estimate of the additional military production program for FY 1951.

This estimate, based on the basic policies set forth in basic policy paper discussed in paragraph (a) above, should indicate:

(1) Which countries should receive assistance by the U.S. in the development of additional military production projects.

(2) The general nature, scope and dollar costs of such country programs.

The tentative estimate should be submitted to the FMACC on or before 25 February 1950.

(g) Developing a refined military production program.

The tentative program referred to in (f) above, to be refined in light of action taken by NATO, discussions with U.S. representatives at the regional and country level, and development of additional data in the United States. Refined program is to be used as the basis for presentation to the Bureau of the Budget and Congress and is to be submitted to the FMACC not later than 20 March 1950.

4. The Legal and Legislative Working Group is responsible for:

(a) The submission to the FMACC prior to March 1, 1950 of a revised version or versions of P.L. 329³ and amendments as needed, to related statutes, which reflect the views of FMACC on how present laws may be advantageously changed.

(b) An evaluation of the Congressional reaction to each of the proposed changes.

(c) The submission to FMACC of a plan, in advance of Congressional hearings, for finding the issues concerning the program troubling various members of Congress, particularly members of the committees concerned with the authorization and appropriation, and the resolution of those issues in the minds of the doubters (to the extent possible) by personal visit from appropriate officials of the three agencies. A careful canvassing of each committee member’s views in advance ought to be possible.

(d) The review of position papers prepared in the FMACC in connection with the presentation of the 1950 program to determine which of them will be required and should therefore be reviewed and prepared for use in the presentation of the 1951 program; to ascertain new questions (particularly those indicating critical skepticism) likely to be the subject of inquiry in the Congressional process; and to review position papers which have been prepared for 1951 program presentation to determine their adequacy in terms of meeting the needs of Congressional presentation.

(e) The formulation of plans for Congressional presentation including the strategy of presentation, the nature of testimony, the identity and scheduling of witnesses and such other factors as may be involved.

In performing these functions, extensive use will be made of each agency’s existing Congressional liaison facilities.

5. The Budget and Fiscal Working Group will be responsible for:

(a) Development and coordination of the necessary budget and fiscal plans and estimates which are required in conjunction with the presentation of the FY 1951 program to the Bureau of the Budget and Congress. Such plans and estimates should include:

(1) The design and layout of the Budget Document.

(2) The determination of agency responsibilities with regard to the collection, compilation, and consolidation of initial estimates covering the following:

(a) End-item matériel

(b) Training (including training teams, tuition, maintenance, etc.)

(c) Additional Military Production

(d) Shipping costs

(e) Other accessorial expenses

(f) Administrative Expenses in U.S. and abroad

(g) Operating Expenses

(3) The definition of the scope of “Administrative Expenses”.

(4) Policy re Lapsing.

(5) Time schedules (to be coordinated with other groups).

(6) Obligation rates for planning program and administrative apportionments.

(7) Implementation of rotation policies on overseas personnel.

(8) Requirements for cash for liquidation of contract authority.

(9) Requirements for distribution of new obligational authority between new appropriations and contract authorizations.

(10) Framework for review of pricing formulas and their coordination with the 1951 and 1952 budgets.

(11) Basis for release of funds for replacement of stock items.

6. The Public Information Working Group, which was established by the FMACC on 6 January 1950, will be responsible for developing the recommended public information programs and policies which are to be carried out prior to and concurrently with the presentation of the program to the Congress. The working group will in particular be responsible for planning and coordinating:

(a) The preparation of material which can effectively be used in conjunction with the Congressional presentations.

(b) The preparation of material for public dissemination to give information about the proposed FY 1951 program and about the accomplishments of the MDAP since passage of the Act.

(c) The distribution of such material to the established media of the press, radio and motion pictures, and to appropriate national organizations, civic, labor, industrial, religious and veterans’ groups.

(d) The development of a schedule of speeches on MDAP by important personages and the preparation of such addresses.

(e) The preparation of a weekly analysis of public opinion concerning MDAP, including the more important questions being raised by the public about the program.

A tentative plan covering these points should be submitted to the FMACC for approval by 20 February 1950.

7. There may be established from time to time as required, such additional working groups, on permanent or temporary basis, as are necessary to the effective development and presentation of a 1951 program.

8. The FMACC itself will be responsible for:

(a) Estimate of long-term objectives, scope and costs of military assistance to various countries.

This study should:

(1) Indicate the long term objectives (political, economic and military) of military assistance programs for those countries or areas for which military assistance is being proposed in the FY 1951 program; and

(2) Should estimate the general nature and amounts of equipment and the dollar costs involved thereto which may be required to achieve the long term objectives.

This paper should be presented to the FMACC for approval by 15 March 1950.

9. The Deputy Director, MDAP,⁴ will serve as executive agent for the FMACC to direct and coordinate on a daily basis, the activities of the working groups established.

State nominees—Chairman and member.

Group A—Mr, William H. Bray⁵

Group B—Mr. A. C. Vigderman⁶

Group C—Mr. John H. [E.] Murphy⁷

Group D—Mr. Ralph Hilton⁸

1. Lot 54D5, consolidated files of various departmental and interdepartmental committees and working groups, including documentation of the Foreign Military Assistance Coordinating Committee and its predecessor, the Foreign Assistance Correlation Committee.

2. The Foreign Military Assistance Coordinating Committee was the interdepartmental organization which provided operational direction and coordination for the Mutual Defense Assistance Program. The Committee consisted of representatives of the Department of State (James Bruce, Chairman), the Department of Defense (Maj. Gen. Lyman L. Lemnitzer), and the Economic Cooperation Administration (Edward Dickinson). FMACC operated under the general guidance of the (Foreign Military Assistance Steering Committee composed of the Secretary of State, the Secretary of Defense, and the Administrator of the Economic Cooperation Administration. The cabinet-level Steering Committee was intended to meet only in the event that basic policy problems could not be resolved by FMACC.

   For information on the Mutual Defense Assistance Program, including descriptions of the organization of FMACC, see U.S. President, First Semi-Annual Report to Congress on the Mutual Defense Assistance Program, October 6, 1949 to April 6, 1950 (Washington: Government Printing Office, 1950), Second Semi-Annual Report to Congress on the Mutual Defense Assistance Program, April 6 to October 6, 1950 (Washington: Government Printing Office, 1951), and Third Semi-Annual Report to Congress on the Mutual Defense Assistance Program, October 6, 1950 to March 31, 1951 (Washington: Government Printing Office, 1951). See also William Adams Brown, Jr., and Redvers Opie, American Foreign Assistance (Washington: The Brookings Institution, 1953), chapter xvii.

3. The Mutual Defense Assistance Act of 1949 (63 Stat. 714).
4. John H. Ohly.
5. Chief of Program Staff, Mutual Defense Assistance Program.
6. Attorney-adviser, Office of the Legal Adviser, Department of State.
7. Chief of the Control Staff, Mutual Defense Assistance Program.
8. Information Officer, Mutual Defense Assistance Program.