173. Editorial Note
In a letter dated October 29 to Clarence Randall concerning the September 11 Report of the Committee on Asian Economic Development and Cooperation (Document 169), Robert Cutler stated in part:
“I understand that the present report has been prepared quite separately from the review of NSC 5506, ‘Future U.S. Economic Assistance for Asia, which the NSC requested the CFEP to undertake on January 24, 1956. However, the two projects are obviously related. I understand that it is likely that the Department of State will recommend cancellation of NSC 5506 on the grounds (a) that there is no similar policy statement relating only to economic assistance for any other area of the world and (b) that individual NSC country or regional policies provide sufficient policy guidance for Asian programs.
“While I do not fully agree that such reasons justify the cancellation of NSC 5506 I can perceive other grounds which might justify that action. NSC 5506 is primarily of historical significance—it reflected the decision not to initiate a major regional economic assistance [Page 400] effort in Asia as had been contemplated in certain NSC papers adopted following the end of the Indochinese war. It was primarily a philosophic statement rather than a specific guide to action.
“I believe that the CFEP should consider the question of the disposition of NSC 5506 at the same time that it considers the recommendations in the Committee’s report. If the CFEP decides to recommend cancellation of NSC 5506 and to adopt recommendations in the Committee’s report (which seem generally consistent with the point of view of NSC 5506), those recommendations as approved by the CFEP might be circulated to the NSC for its information, together with the CFEP recommendation that NSC 5506 be cancelled. If, instead, it is decided that NSC 5506 should be revised, the recommendations in the Committee’s report could, I should think, provide the basis for a first draft of a revision that the CFEP might recommend to the NSC.” (Attachment to memorandum dated November 25 from Gardner E. Palmer, Deputy Assistant Secretary of State for Far Eastern Economic Affairs, to Walter Robertson; Department of State, Central Files, 100.4/11-2557)
The NSC action mentioned in the first quoted paragraph took place on January 18, not January 24, 1956. See Document 77.
The National Security Council cancelled NSC 5506 at its meeting held on January 30, 1958. (NSC Action No. 1853; Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)