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, “Bureau of Budget 1954”

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

confidential

[Washington,] December 23, 1954.

Dear Mr. Hughes: It is noted that in the draft of the Budget Message, you have included two alternative sections for decision as to the future administrative arrangements for the conduct of the President’s Mutual Security Program.

May I respectfully suggest a third alternative which after careful review and consideration as objective as it is possible for me to give under the circumstances, I believe would be the most advantageous for the President to take. I am enclosing a draft of language so that you may see precisely what I have in mind.

The elements of my recommendation to the President are as follows:

1. There are a number of diverse strongly held views in the Congress on this matter, and it has been a subject of Congressional difference every year from the first setting up of the Marshall Plan. Thus a specific recommendation to the Congress at this time either in support of FOA or for some other solution would encounter Congressional opposition which would prejudice the crucial matter of Congressional action on the substance of the Mutual Security Program itself.

2. Conversely, the President’s expressed willingness to confer with Congress on this subject will build goodwill toward the President’s program.

3. When final action is taken by the Congress, a provision that the new organization would become effective six months after Congressional enactment is essential for a smooth transition, for the effective carrying on of the vital week-by-week activities involved in the program, and for giving a fair opportunity to the career employees who in an overwhelming percentage are sincerely, devotedly, and loyally carrying on the program, to make some arrangements for their continuance or to have a reasonable opportunity to obtain new employment.

It is my judgment that a Presidential position along these lines would receive unanimous approval of the bipartisan Congressional leadership before the Budget Message is sent up, and that during the course of the Congressional session, as the bipartisan leaders of the Committees directly concerned talked it through, a reasonably unanimous decision on the new organization would then be reached satisfactory to the President and to the Secretary of State. This process would facilitate rather than prejudice the consideration of the substance of the program. The basic necessity of the six months’ period from the time of adoption to the time it becomes effective is of key importance, as I am certain you can realize under any circumstances.

If you wish, I shall be pleased to discuss this with you further, or with the President.

Sincerely yours,

Harold E. Stassen

[Enclosure]

Paper Prepared by the Director of Foreign Operations (Stassen)

confidential

[Washington, undated.]

Suggested Draft for Budget Message of the President

In view of the necessity for the Mutual Security Program to continue for some years, a decision must be made before June 30, 1955, on how to organize the Executive Branch of the Government to carry out these responsibilities. It is recognized that there are, and have been since the initiation of programs of this nature seven years ago, various views as to the most effective and desirable organization of the Government for the conducting of this important work in the national interest.

The close coordination of the various activities of technical assistance, defense support, economic development, emergency and disaster relief, and refugee and escapee work, and the functioning of the entire operation under the constant and consistent foreign policy guidance of the Secretary of State is imperative. These are the principal reasons which prompted me to propose a reorganization plan establishing the Foreign Operations Administration in 1953. It is my observation that this method has been an effective and efficient manner of carrying out these programs so important to the security and well being of the United States. It is recognized, nevertheless, that under existing law the Foreign Operations Administration would expire on June 30, 1955. I will, therefore, be pleased to confer with the Congress and reach agreement on the new administrative organization to carry on the Mutual Security Program in the future years. Whatever the final decision may be, it will be of prime importance that the new organization go into effect six months after its enactment so that an opportunity may be available for a smooth transition from the present organization to the new one. This transition is important so that the week-to-week work can be conducted in the national interest with a minimum of disruption, and the status of the career employees who are serving with loyalty and devotion around the world can be fairly and adequately safeguarded.