MSAFOA Congressional files, FRC 57 A 709, box 170, “Congressional Presentation”

The Acting Director of the Bureau of the Budget (Hughes) to the Director of Foreign Operations (Stassen)

confidential

My Dear Mr. Stassen: Thank you for sending the Bureau of the Budget your memorandum of January 30, 1954 on “Presentation of the President’s Foreign Operations Program for the Fiscal Year 1955.”1 Our understanding from Mr. Dodge is that no decisions were made in the January 8 NSC meeting on your proposals and that they will require further interagency consideration. We appreciate that you are expected to take the initiative in interagency work on the various problems involved.

As you will recall, Mr. Dodge had personally discussed a series of these problems with the President, Secretary Dulles, Under [Deputy] Secretary Kyes, and yourself. In view of this and the fact that Mr. [Page 681] Dodge will be back in Washington shortly, we urge that no decisions be made on your proposals until Mr. Dodge has had a chance to react.

In the meantime, staff of the Budget Bureau are currently discussing with FOA and Defense Department staff possible arrangements relating to merger of MDAP and regular Defense appropriations which was proposed in II,5 of your memorandum. The Department of Defense has submitted draft appropriation language for this purpose in December as a part of a submission relating to supplemental appropriations.

The Budget Bureau will be in a position to outline its view on the proposals in your January 30 memorandum very shortly after Mr. Dodge returns.

Sincerely yours,

Rowland Hughes