U/MSA files, lot 56 D 551, “1955 Congressional Presentation MS Bill”
Memorandum by the Acting Special Assistant to the Secretary of State for Mutual Security Affairs (Nolting) to the Acting Secretary of State1
- Subject:
- FY 1955 Mutual Security Program
Discussion:
At your meeting today with Messrs. Stassen, Kyes and Dodge,2 an effort will be made to resolve certain questions relating to the FY 1955 Mutual Security Program. Among the points which may be discussed are the following:
1. The form of legislation
FOA has prepared consolidated legislation repealing all existing statutes on foreign assistance and reenacting their provisions, including those on organization, in a single organic statute. The Secretary has indicated that he prefers the method of amending the existing laws since this will not prejudice the long-term organizational arrangements. However, it is possible to draft a bill which will meet the objections of the Department by omitting any references to organizational matters and the Act for International Development and simply consolidate the substantive provisions of the statutes governing military and economic aid.
2. Appropriation of military aid funds and their merger with Department of Defense appropriation
The problem is whether military aid funds should be appropriated directly to Defense or to the President. In the latter case they would be under Mr. Stassen’s control. This question is not of direct concern to the Department. However, it is absolutely essential from a foreign policy point of view that regardless of where the funds are finally appropriated, arrangements be made to assure (a) adequate foreign policy guidance and control in the development and execution of military assistance programs, and (b) satisfactory reporting to the Department on progress and status of these programs.
3. Administration and coordination of the foreign aid programs
It has generally been agreed that for FY 1955 the existing arrangements, with FOA responsible for administration and coordination, subject to foreign policy guidance from the Secretary, should be continued.
4. Coverage of the Military Assistance Appropriation
The question here is whether the military aid appropriation should include funds for support of the Navarre Plan in Indo-China and certain common-use programs. We believe that funds for these programs should be sought as a part of the military assistance programs since their justification is directly related to military activities. [Page 731] They should, however, be clearly identified from the end-item program and probably be administered by FOA with assistance from Defense.
Another subject which you may wish to mention at the meeting is the problem of improving the present arrangements for bringing to bear foreign policy considerations on the military programs during their formulation and implementation on a more continuing basis. While present arrangements have functioned satisfactorily, they can be improved considerably to avoid the difficulties and delays that frequently occur. Recent examples of this problem are “Plan K”3 and Defense policies and pricing criteria on off-shore procurement. A move in this direction might be to provide for State attending meetings of the Munitions Allocations Council (a Defense committee on which FOA sits as an observer).