169. Editorial Note
The question of a supplemental appropriation for the Development Loan Fund rose at a legislative leadership meeting held at the White House the morning of March 24. President Eisenhower had asked the Congress for an additional $225 million for the Fund in his January 19 budget request for fiscal year 1960 (see Document 162), and again in his March 13 Mutual Security request (see Document 234). At the leadership meeting, Under Secretary of State Dillon “stated the urgent need for a supplemental appropriation since the presently available funds are, in effect, obligated although the technical definition of ‘obligated’ will not be fulfilled until detailed agreements are signed in subsequent months. However, he said, the full faith of the United States is already at stake as a result of preliminary commitments. Messrs. Harlow and Taber stressed the need for Mr. Dillon to make available current information adequate to refute Mr. Passman’s allegations about the vast sums available. Mr. Taber believed the House could not be induced to approve more than $100 million for the supplemental ($225 million requested) but that the Senate might accomplish an increase.” (Notes on Legislative Leadership Meeting; Eisenhower Library, Whitman File, Legislative Meetings)
Later that day, Dillon testified in support of the President’s request before the House Foreign Affairs Committee. For text of his statement, see Department of State Bulletin, May 4, 1959, pages 638–643.
On May 14, the House and Senate passed a compromise version of a supplemental appropriation for fiscal year 1959 which included $150 million for the Development Loan Fund. President Eisenhower signed the legislation, P.L. 86–30, the “Second Supplemental Appropriation Act, 1959,” on May 20. For text of the section pertaining to the Development Loan Fund, see American Foreign Policy: Current Documents, 1959, page 1682; for full text, see 73 Stat. 36.