Eisenhower Library, Eisenhower papers, Whitman file

Notes on the Legislative Leadership Meeting, Held at the White House, 8:30 a.m., December 14, 1954

confidential
  • The following were present:
  • President Eisenhower
  • Vice President Nixon
  • Sen. Knowland
  • Sen. Bridges
  • Sen. Millikin
  • Sen. Saltonstall
  • Sen. Ferguson
  • Sen. Wiley
  • Speaker Martin
  • Rep. Halleck
  • Rep. Arends
  • Rep. Leo. Allen
  • Rep. Chiperfield
  • Rep. Taber
  • Rep. Dewey Short
  • Sec. Dulles
  • Asst. Sec. Thruston Morton, State
  • Sec. Humphrey
  • Sec. Wilson, and Asst. Secs. Seaton, Burgess, McNeil, Struve Hensel
  • Gov. Stassen, FOA
  • Sen. Lyndon Johnson
  • Sen. Clements
  • Sen. Hayden
  • Sen. Russell
  • Sen. George
  • Rep. Sam Rayburn
  • Rep. McCormack
  • Rep. Cannon
  • Rep. James P. Richards
  • Rep. Carl Vinson
  • Gov. Adams
  • Gen. Persons
  • Mr. Shanley
  • Mr. Hagerty
  • Mr. Snyder
  • Mr. Harlow
  • Mr. Morgan
  • Mr. Jack Martin
  • Mr. Gruenther
  • Gen. Goodpaster
  • Mr. Milton Eisenhower
  • Director Hughes and Mr. Brundage
  • Dr. Hauge
  • Mr. Randall
  • Mr. Minnich

The President opened the meeting with a brief outline of the topics scheduled for discussion but made it clear that the Leaders could appropriately raise other items if they wished. He was hopeful of developing a meeting of the minds.

[Here follows discussion of the Administration’s budget and United States foreign relations.]

Foreign Trade Program—Mr. Randall stressed the need for the several items in this package (more than just tariff) in order to extend trade and thus help our allies to develop “an earned strength” for their economies and also to improve the long range welfare of the US economy by expanding world markets. He felt it was necessary either to find the way for the world to buy US products from earnings or to suffer a reduction of US exports.

Mr. Randall stated that the proposal was essentially the same as that of March, 1954, except for the addition of the International Finance Corporation as a result of the Rio Conference. It would help the flow of capital to private entrepreneurs rather than to governments.

Mr. Randall concluded his remarks by stressing the importance of Japan in the US security picture and the need for solving its critical trade problems.

Mr. Rayburn asked if it were not vital to get rid of trade barriers and Mr. Randall responded affirmatively. Sen. Johnson thought that there was much support for this program in the Congress and that it was high time to get started on it. He asked if the Administration intended to drive forward with the program this year. The President responded that there had been many questions last year as to the program, so that a one-year extension had been obtained while further study was accomplished. The President believed that the current proposal was the best program that could possibly be devised by the Administration and that it was very vital for us to do the things necessary to enable our allies to develop their own economies in a way that could support the military programs we urged upon them. Sen. Johnson asked if the President intended to urge the Congress to act on this. The President replied affirmatively.

Sen. Wiley felt that there was general agreement with the philosophy of the Randall program but he wanted to point out that only 3% of US business is in exports. He noted a number of other reasons for giving priority attention to the continuing strength of [Page 113] the American economy. Rep. Halleck expressed his own support for the program and the need for full explanation of its content so as to encourage popular and Congressional support. Mr. Rayburn believed the program might be placed first on the House agenda.

Rep. Taber thought the fundamental matter was to educate people to produce things they could themselves use rather than having to rely on foreign trade. Mr. Randall set forth some statistics on the importance of our agricultural and heavy machinery exports, which must be paid for somehow by the countries that purchase them. Mr. Halleck ascertained that the peril point and escape clauses remained in the bill. Sen. Knowland inquired whether Mr. Randall would be able to give the Congress full information about the restrictive actions of other countries.

[Here follows discussion of national defense and mutual security matters. For text of the section on mutual security, see page 812.]