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

MSA–FOA Director’s files, FRC 56 A 632, box 8, “FY 1955 Program Estimates”

Memorandum by the Director of Foreign Operations (Stassen) to the Secretary of State¹

confidential

[Washington,] January 30, 1954.

• Subject:
• Presentation of the President’s Foreign Operations Program for Fiscal Year 1955

I

Pursuant to NSC Action No. 1006 at the 179th Council meeting on January 8, 1954,² the General Counsel of the Foreign Operations Administration Mr. Morris Wolf, is proceeding to draft the necessary specific legislation for the 1955 Foreign Operations Program in consultation with the counsel of the other Departments concerned, and in consultation with Congressional leaders, with the objective of obtaining the approval of the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the Secretary of Agriculture and the Director of the Bureau of the Budget, and the Congressional leaders, before introduction of the bill in Congress.

II

In accordance with the outline presented to the National Security Council and the President, the specific legislation is being drafted to carry out the following principles:

1. The entire program to be known by a new name, such as the “Freedom Fund.”

2. All new obligational authority for military, economic, technical, multilateral and surplus food foreign assistance to be made to the President as a part of the “Freedom Fund,” or other similar new designation.

3. Include in the program covered by the “Freedom Fund” all unexpended balances representing programs previously authorized by the Congress but incompleted, as well as the new funds appropriated for the “Freedom Fund.”

4. The primary responsibility for the administration of the military assistance portion of the program to rest in the Secretary of Defense and to be carried on in accordance with the policy guidance of the Secretary of State.

5. Authority to be obtained from Congress for the merging of the appropriate portions of the new obligational authority and of the old obligational authority with the Department of Defense and Army, Navy, and Air Force funds, as appropriate, when such funds are allocated by the President, and when such merger is approved by him.

6. Provision to be made for over-all coordination of the entire program—military, economic, technical, multilateral and East-West trade—as now being carried out by the Foreign Operations Administration, but that preparation be made to effectively implement a different method of coordination if Congressional opinion indicates a preference. This question of procedure is not to be made an Executive Branch issue with Congress and concentration will be upon the substance of the program.

III

The broad objectives of the program will be appropriately expressed to indicate the following:

1. Support the security of our country and of friendly cooperating nations by providing necessary arms, equipment, training and essential economic strength under the defense policies of the Secretary of Defense.

2. Promote conditions of peace by coordinated efforts in diplomatic, military and economic affairs under the foreign policy guidance of the Secretary of State.

3. Open up opportunities for our people and for other free peoples through technical cooperation, and through facilitating private resource development, educational exchange, trade, and investment.

4. Safeguard the liberty of our citizens by participation in the constructive and humanitarian programs of the United Nations and of other multi-national organizations.

IV

If you are in disagreement with any of these principles or objectives, I would appreciate being advised so that any difference of view can be taken up in the National Security Council and resolved before formal presentation of the 1955 program to Congress.

1. Addressed also to the Secretaries of Treasury, Defense, and Agriculture, and to the Director of the Bureau of the Budget.
2. The NSC in Action No. 1006, “Presentation of the FY 1955 Foreign Assistance Program,” noted Stassen’s views as to the presentation to Congress of the fiscal year 1955 foreign assistance program and his decision to “obtain the approval of the Secretary of State, the Secretary of Defense, the Secretary of the Treasury, the Secretary of Agriculture, the Director of the Bureau of the Budget, and the Congressional leaders, for necessary specific legislation and other detailed steps to carry out the foregoing views.” A copy of this NSC Action is in the S/S–NSC files, lot 66 D 95, “Records of Action by the National Security Council, 1954”.