A/MS Files, Lot 54 D 2911

Memorandum Prepared in the Management Staff2


Reorganization of the Administration of the Point Four Program

The passage of the Mutual Security Act of 1951 has removed the uncertainty regarding the future of Point 4 and at the same time greatly enlarged the program, both in area and in content. It is now urgent to provide an organization that can get on with the job and produce concrete results, particularly since the areas where the program is now are also those where the situation is most critical and the need the greatest.

The chief difficulties accounting for slow progress to date include, in addition to the long-continued uncertainty as to the program’s scope and location: the basic division of program responsibility between the regional bureaus of the State Department, the TCA, the IIAA, and the other participating agencies of the Government; procedural delays at all stages; a fragmented functional approach both in TCA, Washington, and in the country projects in the field, resulting in no real country programs and in no focal points of responsibility for developing country programs; inadequate staffing in key program and functional areas coupled with an inability to make use of the available experience and competence built up by the Institute of Inter-American Affairs; and concentration on the technical assistance phase of Point 4 to the neglect of the investment and capital phase.

In addition to these problems already present, the new scope of Point 4 makes necessary greater emphasis on supply and construction activities, on preparation for possible further expansion into the Far East, and on coordination with other elements of the Mutual Security Program through the Director for Mutual Security.

To deal with these problems and make Point 4 work effectively within the State Department requires attack along three lines:

Reorganization to give TCA effective control over the total program and as large a measure of straight line operating freedom within the Department as is necessary for efficient operation.
Improvements in program and administrative procedures, both within TCA and in departmental supporting activities.
Clear division of responsibility along the “one country, one agency” lines between TCA and the other government agencies having programs in underdeveloped areas.

The principal features of the reorganization include:

1. To give TCA more effective control over the total program.

Shifting from the regional bureaus to TCA the responsibility for planning and developing country programs.
Giving the TCA Administrator a greater measure of authority and control over the activity of other Federal agencies participating in the Point 4 program. This involves revision of the present “Point 4 management plan.”
Making the Institute for Inter-American Affairs an integral part of TCA and organizing it along geographic lines. This will eliminate duplication of technical and administrative services and permit the use of IIAA experience for other TCA programs.

2. To emphasize a country approach to a country problem.

TCA will be reorganized internally from a functional to a geographic basis with three regional divisions, one for Latin America (IIAA), one for the Near East and Africa, and the third for Asia. Functional units will be retained but will serve in a staff rather than a line capacity.
There will be established in each country a Point 4 Director who will be responsible under the supervision of the Chief of Diplomatic Mission, for planning and administering an integrated Point 4 country program.

3. To make TCA an integral part of the Department, fully responsive to Department policies and making maximum use of its facilities:

TCA in Washington will be fully responsible, like other Department units, to the Secretary, Under Secretary, and the Deputy Under Secretary for Administration; Point 4 policies will be coordinated with other Departmental aspects of the Mutual Security Program through a central focal point; the regional bureaus will review Point 4 programs and key personnel; and close lateral ties will be maintained between TCA and the functional areas of the Department especially concerned with the Point 4 program.
In the field, the TCA Country Director will be responsible to the Chief of Diplomatic Mission and will function as a member of his staff.
TCA will basically rely on appropriate central Department facilities for program support and administrative services, but existing Departmental procedures will be modified and adapted to whatever extent is necessary to permit speedy and efficient Point 4 operations.
Arrangements for field administrative support will be flexible, depending on needs and facilities in each country.

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4. To deal with new aspects of the program:

A central Supply and Procurement Staff will be established in TCA to advise the regional services of TCA on programming of supply assistance and to work with OOF3 on the actual procurement.
The new geographic structure of TCA will serve as a basis for possible future expansion into other areas and will also facilitate relations with the Director for Mutual Security.
A Special Assistant to the TCA Administrator will give more vigorous attention to the investment and capital aspects of international development, serving as a contact point with private organizations and other Government agencies on those matters.

5. Primary emphasis in staff and in program operations will be in the field rather than in Washington. Washington staff, both regional and technical, will be held to a minimum with priority going to getting people out into the field. Country programs will be developed and carried out in the field in close collaboration with the host governments and where possible through joint institutions. The Washington function will be essentially one of review, guidance and backstopping.

There are attached the following papers4 describing in more detail the main features of the new set-up:

  • Tab A—A detailed description of the reorganized Point 4 administration.
  • Tab B—The revised internal organization chart of TCA.
  • Tab C—Functions of the offices and staffs in the revised TCA organization.
  • Tab D—Outline of steps in program development and administration.
  • Tab E—List of basic documents and Detailed Follow-up Projects on Point 4 Reorganization.

  1. Drawer 48, Folder “Pt. IV/TCA Organization: Intra/Inter Departmental Organizational Relationships”.
  2. Circulated by the Director, Management Staff (Heneman), to the Department offices concerned on November 30.
  3. Office of Operating Facilities.
  4. Not printed.