S/S–NSC (Miscellaneous) files, lot 66 D 95, “Misc. NSC memos”
Memorandum by the Director of the Bureau of the Budget (Dodge) to the Acting Secretary of State1
The President has asked for a committee to consider immediately the problems related to the presentation of the 1955 economic and military aid programs and make definitive recommendations for his consideration.
Secretary Humphrey will act as chairman, and the other members of the committee will be Under Secretary Smith of State, Deputy Secretary Kyes of Defense, Director Stassen of Foreign Operations Administration, and Director Dodge of Budget.
The principal issues which will need consideration are:
[Page 734]1. Appropriation.—Whether MDAP funds will be appropriated directly to DOD or appropriated to the President and allocated by him directly to DOD, including authority to merge MDAP funds with DOD funds.
2. Presentation.—Measures to ensure that the presentation and justification to the Congress of the MDAP program does not inherently involve a later substantial transfer of these funds to other economic programs, as historically has been the case.
A means of reducing these transfers to an absolute minimum and only as a result of complete justification and careful consideration, while maintaining the principle and authority for flexible transferability to meet unforseen real emergencies.
3. Programming.—The responsibility for handling the programming of MDAP funds in terms of any general policy issues related to programming and expenditure and also in terms of the day-to-day operations and details.
The above issue emphasizes the need for a method of maintaining the “country team” concept while giving greater emphasis to practical military requirements which may later be modified by political or other economic policy considerations.
4. Commitments and expenditures.—Measures to ensure adequate consideration of any requirements for new funds because no funds apparently are available for the purpose.
5. Other subjects.—The committee may also be asked to consider related matters such as some method of reviewing proposed dollar commitments to be made by executive personnel overseas, which are additions to existing programs, before these become binding on the Government.