162. Editorial Note
In his State of the Union message, given before a joint session of the Congress January 9, 1959, President Eisenhower referred to the Draper Committee’s establishment and to the need to continue international economic development. Regarding the latter, the President requested an increase in the U.S. contribution to the International Monetary Fund and the International Bank for Reconstruction and Development, noted U.S. participation in efforts to create an inter-American financial institution, announced he would send the Congress a program to encourage private industry’s participation in foreign economic development, and discussed the Mutual Security Program’s contribution to world health. For text, see American Foreign Policy: Current Documents, 1959, pages 1–7. Regarding the Draper Committee, see Documents 235 ff.
On January 14, Secretary of State Dulles testified before the Senate Foreign Relations Committee on the basic purposes underlying U.S. foreign policy, one of which was “that free nations shall attain a more rapid rate of economic growth, so that their independence will be more secure and vigorous and so that there will be greater opportunities for cultural and spiritual development.” For text, see American Foreign Policy: Current Documents, 1959, pages 7–15. Two days later, Under Secretary of State Dillon defined the imperatives of international development in an address before the Foundation for Religious Action in the Social and Civil Order. For text, see Department of State Bulletin, February 2, 1959, pages 165–168.
The President sent his budget request for fiscal year 1960 to the Congress on January 19, highlighting several of its features in his transmittal letter. He listed economic development assistance second, noting that the success of newly independent nations to improve their economic and social status was “vital not only to the freedom and [Page 315] well-being of the millions of people within their boundaries but also to the population of the entire world.” Eisenhower therefore recommended the United States increase its IBRD and IMF subscriptions, enact a supplemental appropriation of $225 million for the Development Loan Fund, create with the Latin American countries a joint development banking institution, increase the Mutual Security Program’s emphasis on economic development, and enact legislation to expand the mutual security investment guaranty program. For text, see American Foreign Policy: Current Documents, 1959, pages 16–30.
Dillon reiterated the President’s comments in testimony before the Senate Foreign Relations Committee on January 21, when he also emphasized the need to stimulate economic development through private investment in order to counter the Soviet economic offensive. Text of his statement is ibid., pages 1424–1432. The latter theme was repeated in the Report of the Committee on World Economic Practices, the “Boeschenstein Report,” which was submitted to the President January 22 and made public March 2. Text of the report is ibid., pages 1432–1449. Regarding the Boeschenstein Committee, see Documents 11 ff.