U/MSA files, lot 57 D 567
The Secretary of State to Senator Alexander Wiley1
Dear Senator Wiley: You have asked me whether in my judgment the signing of armistice agreements regarding Indo-China diminishes the need for funds requested for the area of Southeast Asia and the Western Pacific in the Mutual Security legislation now before the Congress.2
I believe that the armistice does not diminish the need for these funds. If anything it increases the need to have available funds with which to build the defensive capabilities and strengthen the resistance of the free nations in the area. When I appeared before the Foreign Relations Committee during the hearings on this legislation and discussed the need for funds in this area, the possibility of a settlement of the nature which has now taken place was already foreshadowed. As you will recall, when I testified as to the importance of having a flexible fund to build strength in this region, I emphasized the need for it even should such a settlement occur and I believe this was also held in mind by members of your Committee. In my estimation, the gain which Communism has now [Page 651] established in this area should be a warning to all the people of the region as well as to ourselves of a need for a determined effort to preserve their freedom. I believe no one can now foresee exactly how these funds will be used. However, their availability will be essential for the success of plans now under way. In the event that unforeseen circumstances prevent the efficient expenditure of these funds for the purposes of strengthening the area against further Communist encroachment, they will of course be held unexpended for future disposition by the Congress.
For these reasons I believe it is a matter of grave importance to the national interest that these funds be available and I trust that the Congress will see fit to authorize and appropriate them.3
Sincerely yours,
- Senator Wiley of Wisconsin was Chairman of the Senate Foreign Relations Committee. The letter was made public by him during debate on the Mutual Security bill on July 29. See Congressional Record, vol. 100, pt. 9, p. 12515.↩
This question was discussed at the Secretary’s staff meeting held the morning of July 22. The unsigned notes of that meeting read in part:
“Mr. Nolting reported that Representative Taber had queried Budget Director Hughes as to how much of the flexible $785 million which had been requested for Southeast Asia could be saved because of the cessation of hostilities in Indo China. Mr. Hughes felt that a Working Group, composed of State, Defense and FOA, should be established to examine the $785 million in order to advise the Congressman on how it was contemplated this money would be spent. Mr. Nolting asked whether the Department should participate in such a Working Group or whether we should adhere to our previous position that such unspecified funds were necessary in order to provide the maximum flexibility in Southeast Asia.
“The Secretary replied that he thought it had been understood during the recent meeting with Congressional leaders, including Representative Taber, that we needed this large sum for flexible use in the area. Saying that he had foreseen the present situation at the time of the meeting with the Congressional leaders, the Secretary pointed out the importance of maintaining these funds in order to build-up Thailand, Laos, Cambodia, and Burma, as necessary. Furthermore, he had reiterated this point yesterday to Representative Taber, emphasizing that it would be a serious blow to cut these funds at the present time since the major purpose of the flexible $785 million was to prevent disaster from spreading in Southeast Asia. The Secretary added that he was not familiar with the details of the separate $306 million for hardware for Indo China and that there might be some possible savings in this amount.” (Secretary’s Staff Meetings, lot 63 D 75, SM N–249) John Taber of New York was Chairman of the House Appropriations Committee.
↩Another discussion of this bill occurred at the staff meeting held the morning of Aug. 2:
“Congressman Vorys had mentioned to the Secretary that the House version to this Bill provided that the SEA funds could go only to countries with which we were associated in Mutual Security Assistance military pacts. The Secretary was concerned that this might preclude military assistance to Laos, Cambodia and Viet-Nam. He asked that Mr. Nolting see what could be done to accomplish this.
“Mr. Morton stated that the Senate version did actually name the countries of Laos, Cambodia and Viet-Nam and he was sure that we could secure wording approval in the conference for our purposes.” (Summary by Scott; Secretary’s Staff Meetings, lot 63 D 75)
Specific mention was made of Cambodia, Laos, and Vietnam in Section 121 of the Mutual Security Act of 1954, approved Aug. 26. See 68 Stat. 837.
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