Memorandum by the Assistant Secretary of State for Far Eastern Affairs (Butterworth) to the Director of the Office of Philippine and Southeast Asian Affairs (Lacy)


Following my conversation with Mr. Cleveland1 yesterday, at the Secretary’s meeting this morning I recommended that (1) the Secretary agree to recommend to the President expenditures out of Section 303 funds to set in motion as soon as possible an economic aid program for French Indochina, it being assumed that after July 1st funds from the extension of the China Aid Act would be forthcoming; (2) that the Department agree to the recommendations from the Field that ECA run the economic aid mission and should begin its planning, collection of staff, etc. forthwith. I did not raise the question as to who would run Point IV.

I shall communicate these decisions informally to Cleveland and PSA can proceed to do all the necessary.

  1. Harlan Cleveland, Acting Chief of the Far East Program Division, Economic Cooperation Administration.