Editorial Note
In his summary of the Secretary’s staff meeting held the morning of August 23, Jeffrey C. Kitchen, Deputy Director of the Executive Secretariat, reported a discussion of the Colombo Plan:
“Mr. Waugh reported that the Southeast Asian countries would send a very strong representation to Washington for the meeting of the International Bank late in September. The same officers would be proceeding to Ottawa where the Colombo Plan powers are meeting on October 1. Mr. Waugh said that he had been discussing this matter with Mr. Jernegan and thought it represented a real opportunity for us to discuss both economic and political problems with these leaders. There was considerable discussion about the desirability of depending on the Colombo Plan to be the basis of economic integration in the area rather than sponsoring some new organization or plan under the terms of the Southeast Asian pact. The Secretary indicated that he had asked Mr. Bowie for a paper to educate him on the purposes and nature of the Colombo Plan and suggested that Mr. Waugh and perhaps Mr. Merchant contribute to such a paper which he could study. Mr. Waugh mentioned that Mr. Stassen intended to visit the Southeast Asian area shortly and suggested that the Secretary telephone him for the purpose of finding out what Stassen’s plans were and to inform him of our thinking in this field. It obviously would be undesirable to have Stassen taking one line while we were moving on another at the Southeast Asian conference. The Secretary said he would call Stassen.
“It was pointed out that Japan was not a member of the Colombo Plan and that any plan should contemplate the ultimate association of Japan. There were advantages in avoiding creating a new scheme authored by the United States and dependent upon it for a majority of the economic assistance rendered. At the same time [Page 781] using the Colombo Plan would have the disadvantages of Japan and the Philippines being omitted, at least for the present, and also that countries such as Thailand and the Philippines, which stood up to be counted on the security matter, would not be given even equal, to say nothing of preferential, treatment.” (Secretary’s Staff Meetings, lot 63 D 75)
Samuel C. Waugh was Assistant Secretary of State for Economic Affairs. John D. Jernegan was Deputy Assistant Secretary of State for Near Eastern, South Asian, and African Affairs.
Robertson sent the following memorandum to Dulles on August 23:
“At the staff meeting this morning you assigned to Bowie, Waugh and Merchant the responsibility for developing an economic program for Southeast Asia.
“It is not for me to question your reason for bypassing FE on one of its primary and most important problems but I should like to point out that our economic staff will be as perplexed as I am. Baldwin who is the FE Economic Coordinator has been giving this particular problem earnest study. I do not infer a reflection upon the aforementioned gentlemen in saying that in my opinion Baldwin is more familiar with the economic problems of the area than they are.
“I am certain that FE will be asked for its views but I strongly feel that it should have a ground-floor responsibility and not one secondary to S/P, E and EUR.” (890.00/8–2354)
Dulles replied on the same day:
“I have your memorandum of August 23 with reference to the economic program for Southeast Asia. I had no intention of bypassing FE or Baldwin and will see to it that FE is in on the ground floor.
“I had thought of Merchant only because he was planning to head up our staff for the Manila conference. However, he may now be replaced by Mr. MacArthur so that that will have to be changed.” (890.00/8–2354)