223. Memorandum From the Deputy Under Secretary of State for Economic Affairs (Dillon) to the Director of the International Cooperation Administration (Smith)1


  • U.S. Assistance to Morocco for Fiscal Year 1958

I have considered your views and agree it is necessary to mount and implement a program in Morocco quickly if we are to have a [Page 602] sound development program in the magnitude of $30 million. The point made in your numbered paragraph 22 will be borne in mind during the negotiations, and the Bureau of Near East and African Affairs will keep in close touch with your staff during the negotiations to ensure that the practical problems faced by ICA in mounting and implementing an economic development program are taken fully into account.

During the recent visit of the King of Morocco, the Secretary assured him that the U.S. desired to continue economic aid to Morocco in order to assist in the expansion of the Moroccan economy, and expressed a hope that we would be able to increase our aid level this year.

I agree with you that the first draft of the memorandum should not have discussed our bases in Morocco …. In view of the present importance of the bases, however, as established by the National Security Council, I feel we must allocate the additional $10 million for Morocco which the Secretary approved on October 1 as a potential requirement and I would be gratified if you would take the necessary action within ICA.

Douglas Dillon 3
  1. Source: Department of State, Central Files, 771.5–MSP/12–2457. Secret.
  2. Smith responded on December 13 to a memorandum by Palmer recommending an increase from $20 million to $30 million in defense support funds for Morocco. Paragraph 2 noted that such a program could be implemented if detailed planning could begin no later than February 1, 1958. If the base negotiation were protracted then he recommended that funds be pledged only as quickly as sound projects could “be agreed upon, engineered and implemented.” (Ibid., 771.5–MSP/12–1357)
  3. Printed from a copy that bears this typed signature