Editorial Note
The origins of the Point Four program may be traced back to President Truman’s Inaugural Address of January 20, 1949. At one point in that address, the President stated: “Fourth, we must embark on a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of undeveloped areas” (Department of State Bulletin, January 30, 1949, page 125). The legislative framework of the program was established by Title IV of the Foreign Economic Assistance Act of 1950, approved on June 5, 1950. Its financial base, for fiscal year 1951, was provided for to the extent of $34,500,000 by the appropriations bill enacted on September 6, 1950. For documentation on these phases of the Point Four program, see Foreign Relations, 1949, volume I, pages 757 ff.; and volume I, pages 846 ff.
Egyptian Ambassador Mohamed Kamil Abdul Rahim, on July 15, 1949, called on Willard L. Thorp, Assistant Secretary of State for Economic Affairs, to discuss the Point Four program in its relationship to Egypt. Mr. Thorp, who had been designated to assume responsibility in the Department of State for developing the program, informed the Ambassador that it “had been conceived as assistance in increasing the productivity of a country and thereby raising its standard of living, Mr. Thorp said that the program would have to be adapted to each country individually, and that if Egypt could submit a survey of its development needs and resources, together with its plans for economic development, the program could get under way more expeditiously. …
“Mr. Thorp explained that the assumption of local costs by the recipient government would be expected. …
“Mr. Thorp then continued by explaining that capital guarantees administered by the Export-Import Bank, or other measures, would perhaps be necessary to encourage private investment, which was needed in most areas to supplement technical assistance. …” (Memorandum of conversation by Stuart D. Nelson of the Division of Near Eastern Affairs and Samuel P. Hays, Special Assistant to Mr. Thorp, 800.50 TA/7–1549)