129. Memorandum of Telephone Conversations, Washington, January 15, 19571

SUBJECT

  • Costs Involved in U.S. Proposals for CPR

PARTICIPANTS

  • Dr. Milton S. Eisenhower
  • ARA—Mr. Rubottom
  • RPA—Amb. Dreier

In a telephone conversation with Messrs. Rubottom and Dreier on Tuesday, January 15, 1957, Dr. Eisenhower stated that he had taken up with the President and the Director of the Bureau of the Budget2 the question of costs involved in our proposals for the CPR. He had explained that our proposals implied a cost to the OAS of a little more than $5 million per year, and that our share would be an increase of about $3.5 million in our annual quotas. In addition, there would be certain non-recurring costs such as for malaria eradication and atomic energy that would amount to a total of a [Page 469]little over $40 million to be used over five years, or an average of $8 million annually for five years.3 Both the President and the Director of the Bureau of the Budget said they considered Dr. Eisenhower’s figure as all right, and that he could go ahead with the proposals so far as the costs were concerned.

Later, Dr. Eisenhower called Mr. Brundage of the Bureau of the Budget on the telephone, and reported to Mr. Dreier that Mr. Brundage had already informed his staff of the conversation with the President.

  1. Source: Department of State, Central Files, 361/1–557. Official Use Only. No drafter is indicated on the source text.
  2. Percival E. Brundage.
  3. These estimated costs of the U.S. proposals for the Committee of Presidential Representatives were tabulated and sent to Milton Eisenhower by Dreier in a memorandum dated January 10. Dreier wrote in part: “Decisions will also have to be made at some point as to the precise amount which the United States will be willing to contribute to the special voluntary funds in support of the non-recurring expenditures, and the relationship of our contribution to those of other countries. It has been our thought so far in the Department that the annual costs would be governed by the obligatory quota systems of the various branches of the OAS (U.S. paying up to two-thirds), but that in cases of special programs where completion of a task is of great importance to us, we might find it necessary and desirable to contribute a larger share to the voluntary funds, without regard to a fixed scale of contributions by all OAS member countries.” (Department of State, Central Files, 361/1–1057)