Office of the Historian

796.5–MSP/4–2351

Memorandum by the Executive Director of the Executive Secretariat (McWilliams) to the Secretary of State

confidential
[Washington,] April 23, 1951.

I have talked with Mr. Cabot’s1 office with respect to the $10 million for the Philippines. The original memorandum from which you talked to General Marshall specified that the $10 million would be [Page 1530] made available from Defense funds. Subsequently the proposal was made that the funds be made available from MDAP funds rather than Defense funds and for this reason the program came under the jurisdiction of Mr. Cabot.

Mr. Cabot’s difficulty in proceeding with the matter to date has been a lack of information and justification for making this sum available for the Philippines. General Maloney,2 of the Defense Department, is in possession of the information and justification and Mr. Cabot is meeting with him early this afternoon to go over the matter.

Mr. Cabot also informs me that information has come from the Treasury via a telephone call from Manila Friday night that the Philippines are in much better financial condition than had been anticipated and in fact there may be a $20 million sum available to them on which they had not counted.

Mr. Cabot requested permission to proceed with his meeting with General Maloney early this afternoon to develop the facts fully and then meet with you at 4:30 p. m. together with Messrs. Merchant3 and Thorp.4 I told Mr. Cabot I felt this procedure would meet with your approval and accordingly I have scheduled the meeting at 4:30 p. m. in your office.5

W. J. McWilliams
  1. Thomas D. Cabot, Director for International Security Affairs.↩
  2. Maj. Gen. Harry J. Malony, Consultant on Southeast Asian Affairs in the Department of Defense and that Department’s representative on the Southeast Asia Aid Policy Committee.↩
  3. Livingston T. Merchant, Assistant Secretary of State for Far Eastern Affairs.↩
  4. Willard L. Thorp, Assistant Secretary of State for Economic Affairs.↩
  5. A handwritten marginal notation on the source text reads: “Meeting held. S[ecretary] approved [$]10 mill[ion] to Philippines. W[illiam] J. M[cWilliams]”.↩