Foreign Relations of the United States, 1952–1954, General: Economic and Political Matters, Volume I, Part 1

700.5 MSP/12–2453

Memorandum by the Acting Special Assistant to the Secretary of State for Mutual Security Affairs (Nolting) to the Secretary of State

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[Washington,] December 24, 1953.

• Subject:
• FY 1955 Mutual Security Program

As you know, the President has approved the FY 1955 Mutual Security Program in the amount of $3,510 million, which is divided $2,500 million for military assistance and $1,010 million for bilateral and multilateral economic aid. This action followed your approval of Mr. Stassen’s presentation to you of the proposed program on December 18.¹ The President’s action implicitly approved the following points:

1. Military assistance is to be appropriated to the Secretary of Defense and shall include funds for Indo-China support, UK aircraft production and common use items for Yugoslavia.

2. Economic aid programs in Europe would be carried on in Berlin, Spain, Greece, Turkey and Yugoslavia.

3. With respect to the Near East and Africa, special economic aid programs in the amount of $130 million should be illustratively programmed for presentation to the Congress. These programs would be for Iran, Israel and the Arab States.

4. Contributions to multilateral organizations would be appropriated to the Secretary of State. An amount of approximately $135 million would be requested for contribution to the UN Korean rehabilitation program (UNKRA), the UN Palestine Refugee Agency (UNRWA), multilateral technical assistance programs of UN and OAS, and UN child welfare programs (UNICEF).

I am attaching for your information a table showing the proposed distribution of the $3,510 million for the FY 1955 Mutual Security Program.

[Attachment]

Table Prepared in the Office of the Special Assistant to the Secretary of State for Mutual Security Affairs

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FY 1955 Mutual Security Program

($ Millions)

1. Military Assistance (Appropriated to Secretary of Defense)
A. Regular MDAP		1596.8
B. Special Programs
Indo-China support	800.0
UK aircraft production	75.0
Yugoslav common use	20.0
NATO contributions	8.2
		903.2
Total Military Assistance		2500.0
2. Non-Military Assistance
A. Economic Programs (Appropriated to the President)
Europe		134.0
Near East and Africa
Technical Assistance	40.0
Special Economic Aid	130.0
		170.0
Asia and Pacific
South Asia	133.0
Far East	116.5
		249.5
Korea		231.0
American Republics		32.0
Administration		34.6
Miscellaneous Programs		23.9
Sub-total, economic programs		875.0
B. Multilateral Programs (Appropriated to Secretary of State)
UNKRA	71.0
UNRWA	30.0
UN Technical Assistance	18.8
OAS Technical Assistance	1.5
UNICEF	13.5
Undistributed roundoff	.2
Sub-total, multilateral programs		135.0
Total, Non-Military Assistance		1010.0
Grand Total, All Programs		3510.0

1. Secretary Dulles had met with Stassen, Ohly, and Nolting at 6 p.m. on Dec. 18. The notation concerning this meeting is in Princeton University, Dulles papers, “Dulles’ Appointment Book”.