Memorandum by the Representative of the Department of
Defense on the Executive Group on Foreign Aid (Lincoln) to the Under Secretary of State (Webb)
[Washington,] May 15, 1951.
Here are the “Essential Points of Mutual Security Program”, which I promised
I would attempt to draft.
You suggested that some outline such as the attached might be the basis for
discussion with Mr. Richards1 this afternoon with the thought that we might want to
learn more about the best method of approach to Senator George2 and other members of
Paper Prepared by the Representative of the Department
of Defense on the Executive Group on Foreign Aid (Lincoln)
[Washington,] 15 May 1951.
Essential Points of Mutual Security Program
- The Program relates and integrates practically all economic
aid and military aid on a world-wide basis to attain the maximum
security return for taxpayer’s dollar. It is part of the U.S.
- It is founded on experience, organization and authorizing
legislation of ECA, MDAP and Act for International
Development. It is to be stressed that ECA, with European recovery practically achieved a
year ahead of schedule, is now to be directed in major part to
economic support of increased military strength.
- The program has been worked up in the form of four titles,
each dealing with a geographic area—Europe, Middle East and
Africa, Asia, and Latin America. There is a fifth title of
general provisions, including U.N. contributions.
- As reported to BOB, approximately three-quarters is arms aid;
most of the remainder is ECA aid
designed to make possible increased military effort and military
production. A comparatively small proportion is Point IV type
aid designed to help people to help themselves—thereby reducing
political and social unrest while generating increased
- The Point IV funds are primarily to provide skilled advice and
some demonstration equipment to help backward countries now
trying to increase their productivity.
- The great part of the funds for Asia are for support, either
direct or indirect of forces opposing Communism—Thailand,
Indo-China, Philippines, and principally Formosa. These
countries do not have the industry to produce or money to buy
the arms. Communist revolt and/or a heavy arms load creates a
need for some economic aid.
- The funds for Europe, including Greece and Turkey, are almost
entirely for increased military strength to oppose
- Funds for North Atlantic Treaty countries are programmed to be
consistent with plans to support General Eisenhower’s mission.
These countries have the manpower; they can support the forces
once raised. They can’t produce the initial equipment
- Some problems of the bill:
- Tie-in between military plans, arms aid and economic
- How best to energize European military
- Prior legislative history places Greek-Turkish
economic aid in Title I and arms aid in Title II;
- Tie-in between arms aid program, the military budget,
and U.S. production programs;
- Point IV in State or ECA
- Coordination of program in Washington to
assure that military, economic and political
factors are tied together;
Note that the
allocation responsibility given Secretary of State
in 5 April letter is really limited to 5 per cent
of funds in Title I—as bill is now drafted. This
responsibility is really exercised in ISAC.
- Handling of Germany, Spain and