740.5/5–150
The President to the Secretary of State
My Dear Mr. Secretary: I have today allocated to the Secretary of Defense the sum of $13,000,000 from funds appropriated to carry out the provisions of section 303 of the Mutual Defense Assistance Act of 1949. Programs of military assistance to Indonesia and Indo-China utilizing these funds are to be approved by you, and forwarded to the Secretary of Defense for implementation. In addition, I approve in principle the provision of economic assistance to Indo-China as justified by your memorandum of April 17, 1950 and have allocated $750,000 to the Economic Cooperation Administration for an interim program of medical aid.
I have given full consideration to the request for $20,000,000 contained in the Department of State’s letter of April 12, 1950,1 to the Director of the Bureau of the Budget. It is my desire that, at this time, the United States provide to those nations only that increment of assistance which is a matter of urgency, and essential for furthering the achievement of United States objectives in those areas. For Indonesia, a program of the approximate magnitude of $3,000,000 should be planned to provide the basic arms and equipment necessary to assure an effective constabulary force. The remaining funds should be utilized for furnishing supplies and equipment from United States military stocks to friendly forces in Indo-China to strengthen their efforts to achieve internal security.
With respect to further economic assistance for Indo-China, funds available under the Mutual Defense Assistance Act of 1949 will be allocated for that purpose upon the development of a program indicating the aid to be furnished and the financing required in fiscal year 1950. The request for an allocation of funds should be submitted to me through the Director of the Bureau of the Budget.
I further desire that as soon as practicable you submit to me an estimate of the scope, character and timing of economic and military assistance which may be required to accomplish our objectives in Indonesia and Indo-China.
Sincerely yours,
- Not printed.↩