Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

102. Minutes of the 90th Meeting of the Council on Foreign Economic Policy⁰

June 5, 1959.¹

[Here follow a list of participants and discussion of an unrelated matter.]

II. CFEP 583—Amendment of P.L 480.

1. The CFEP considered the following recommendations submitted by the Departments of Agriculture and State² with respect to amending P.L. 480 and taking certain administrative action thereon in order to carry out successfully the Food for Peace Program:

• “1. Policy: That the administration should increase efforts to make more effective use of U.S. surplus agricultural products in furtherance of Food for Peace, but within the framework of our policies to reduce incentives for domestic overproduction to safeguard commercial markets of the U.S. and friendly countries; and to consult with friendly exporting nations; e.g., through the wheat utilization committee and such other groups as appropriate.
• “2. Legislation Needed:

  a. Extension of Public Law 480 for three years, with new authorization for Title I of $4,500,000,000 and for Title II³ of $700,000,000.

  b. New authority under Title I of Public Law to permit grants of surplus commodities for national reserves in eligible countries. The recipient country would reimburse the U.S. in local currency if and when the commodity is sold internally, but not if stored indefinitely. Legislation is not required to replace, on a grant basis, commodities distributed in accordance with U.S. approved Title II donation programs.

  c. New authority under Title II authorizing broader use of grants for economic development in cases where this is more appropriate than Title I.

  d. Amendment of Section 104 of Title I to eliminate the provision for grants for economic development and related purposes under subsection 104 (e) and transfer authority to make such grants to subsection 104 (g), in order to remove the requirement of a waiver of Section 1415 of the Supplemental Appropriation Act of 1953.⁴

• “3. Administrative Actions Needed:

  a. The Administration should inform the public and the Congress that there is adequate government organization as well as coordinating mechanism for operating the Food for Peace Program and related programs, and that the current organization is effective. In addition to agency functions, there are the Interagency Staff Committee, the Francis Committee and the Council on Foreign Economic Policy. The creation of a new and separate Food for Peace agency is not recommended.

  b. The Administration should:

  (1) Continue efforts to increase commercial trade in agricultural products and to remove restrictive measures which inhibit trade in these commodities.

  (2) Continue to maximize sales of surplus agricultural commodities under Title I Public Law 480, with particular attention to the improvement of the economic health of the recipient countries.

  (3) More actively encourage national food reserves in selected recipient countries by making available loans and grants under PL 480 Title I to develop facilities for such reserves.

  (4) Increase the use of grants of food for school lunch programs under Title II, and broaden Title II to permit grants of food for economic development in cases where this is more appropriate than Title I.

  (5) Expand the donations of surplus food under Title II and where suitable under Title III of Public Law 480, with emphasis on types of programs which will assist the recipients toward a self-supporting, nutritionally improved status.

  (6) Coordinate surplus disposals with other economic aid programs, and utilize currencies acquired under Title I, Public Law 480 where appropriate, to assist the effective utilization of the surplus food.

2. Action:

It was the consensus of the Council that the recommendations should be approved except as follows:

a. Paragraph 2a. Congress should be asked to extend P.L. 480 for one year. However, an extension of up to three years would be acceptable if, in the opinion of the Department of Agriculture, the political situation urgently requires it.

b. Paragraph 2d. Congress should not be asked to amend Section 104 of Title I (P.L. 480) to eliminate the requirement for a waiver in order to make local currency grants for economic development. The Council was sympathetic to a more liberal use of local currency grants for economic development, but took the position that this could be done by Executive Branch action without asking the Congress to amend Section 104 of Title I.

[Here follows discussion of unrelated matters.]

Paul H. Cullen
Lt. Col., USA Secretary

0. Source: Eisenhower Library, CFEP Records, Office Series, Council Minutes, 1959 (2). Secret.
1. The meeting was held at the Executive Office Building.
2. CFEP 583/1, June 3. (Washington National Records Center, CFEP Files: FRC 62 A 624, CFEP 583, Amendment of P.L. 480)
3. Title I governs sales of agricultural surpluses for foreign currency. Title II addresses use of agricultural surpluses for famine relief and other assistance.
4. Public Law 547, July 15, 1952. (66 Stat. 637)