Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 2

711.56352/2–2753: Telegram

No. 891
The Secretary of State to the Embassy in Spain¹

secret
priority

Washington, April 20, 1953—4:32 p.m.

774. Personal for Ambassador from Bonbright. Present review contemplated FY 1954 foreign aid budget, designed achieve greatest possible economies, indicates FY 1954 aid figures recommended Embassy’s telegram 683² and supported in Department’s letter March 6 to DMS³ no longer feasible.

Budget review still in progress and no final decisions reached. We fully realize significant relationship this problem has to negotiations. Would therefore appreciate receiving urgently for my guidance your reaction regarding impact each of following possible results of this review would have on continuation of negotiations and their successful outcome.

1) Reappropriation of $125 million (assuming breakdown of $75 million economic aid and $50 military aid) with increase by some small amount, say $25 or $50 million, on military aid side bearing in mind pressure for economies bears most heavily on economic aid side. This appears to us best we might be able to do for FY 1954.

2) Reappropriation $125 million without any increase.

3) Reappropriation only of military aid portion of $125 million.

Dulles

1. Drafted by Dunham and cleared with Martin and Bonbright.
2. Document 882.
3. See footnote 5, ibid.