Foreign Relations of the United States, 1950, The Near East, South Asia, and Africa, Volume V

880.00 TA/9–1250: Circular telegram

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

confidential

Washington, September 12, 1950—9 a. m.

Pres sig of $34,500,000 appropriation for Pt IV technical cooperation program fiscal year 51 enables you now inform Govt you accredited that you prepared receive proposals for bilateral technical cooperation projects and give all possible assistance in preparing them for transmission to Dept in sufficient detail to permit prelim appraisal here. For your guidance but not necessarily for disclosure to local Govt, FY 1951 appropriations suffice for reasonably firm allotment for respective Near Eastern countries as fols: Egypt, $250,000; Iraq, $200,000; Saudi Arabia, $150,000; Syria, $150,000; Lebanon, $100,000; Israel, $100,000; Yemen, $50,000; and Jordan, $50,000. In discussions with local Govt, you may translate this into terms of services to be supplied, counting annual cost one Amer expert at $15,000 and NE trainee to US at $4,000 and NE trainee to Amer colleges in NE at $2,000. Indicate that modest amts machinery, equipment can be made available only in connection demonstrations or training projects. Local Govt, of course, is expected to bear certain local costs that may be paid in local currency. Emphasize that real measure of significance any program is its promise of encouraging econ development, stimulating investment and furthering other objectives of Point IV Statute rather than dol allocation.

You are authorized open conversations with Govt and forward project proposals with indication of your judgment well as that of Govt as to priorities. Dept wishes emphasize “Grass Roots” type activity under Pt IV.

Individual projects comprising proposed program shld be listed or at least grouped in accordance with priority, but program shld be comprehensive, even if clearly exceeding dimensions above indicated. This wld not preclude prompt consideration individual high priority TA projects urgently desired by local Govt and strongly supported by US Mission if such projects are closely related to country’s own development program. Dept suggests you welcome initial proposals for a program from each country that might cost twice as much as above allotment to that country, first, because such info needed to shape requirements for next fiscal; second, because possibility that delays in requests from other countries and delays in recruitment and appointment this year might permit eventual allocations for NE countries later in fiscal 1951 larger than present allotments. Dept will, of course, approve projects only up to amount of funds clearly available at given time. Since more time will be needed to obtain Amer experts than to select local trainees, you might over-program more heavily in respect experts than trainees. Trainee grants may be committed in full before close FY for subsequent disbursement through two more fiscal years. Pt IV law requires all Amer experts have FBI clearance which usually takes about three months.

You shld emphasize that UN TA program, because of large US contribution, may be double that of US bilateral program. US Pt IV law emphasizes that a country shld use UN aid wherever feasible.

Further instrs re (1) relationship between UN technical asst and US Pt IV programs, (2) formal bilateral agreement with local Govt, (3) possible estab of joint comm, (4) your previous project recommendations, those of Dept and other agencies, and (5) other matters will fol, but steps outlined here shld be taken immed.

Inform if you need additional copies PL 535 (Pt IV enabling legis).

To facilitate area coordination, in accordance with policy outlined in Unrap 29 of June 28, 1950,² copies of Mission recommendations and Dept decisions concerning Pt IV policies and operations in countries to which this cable addressed shld be repeated to Amb Blandford and where appropriate to other US Missions in area.

Dept also interested in possibility using bilateral funds for coordinated projects in the Arab States under auspices of Arab League. To this end believe advisable initiate discussions with League officials looking to specific proposed projects consistent with Ft IV policy. Sums made available for AL programs might be deducted on pro rata basis from Arab States intended to benefit from project. Hoskiris³ has suggested advisability studies by League of trade obstacles between members, and other fields might be those of social welfare and housing. For info Fed Housing Agency preparing project proposals covering NE technical institute.⁴

Webb

1. At Arab capitals and Tel Aviv. The message to Beirut was sent to Ambassador John B. Blandford, United States Representative on the Advisory Commission of the United Nations Relief and Works Agency for Palestine Refugees in the Near East.
2. Not printed.
3. Presumably Harold B. Hoskins, a private business consultant, who, in 1945, had been Regional Economic Counselor at Cairo and other Near Eastern posts.
4. The Department of State, on September 12, 7 a. m., sent a, circular telegram along broadly similar lines to New Delhi, Karachi, Colombo, and Kabul, informing them of target figures for Point IV assistance to various South Asian countries during fiscal year 1951, as follows: $1, 200,000 for India; $600,000 for Pakistan; $100,000 for Ceylon; and $50,000 each for Afghanistan and Nepal. For the text of the circular telegram, see vol. i, p. 865.