213. Minutes of the Cabinet Meeting0
[Here follows a list of participants.]
This meeting was devoted almost entirely to reports by Cabinet members on steps being taken to implement 1958 programs.
[Here follows discussion of “Farm Legislation” and “Defense Legislation.”]
[Page 408]Mutual Assistance and Related Items—Mr. Dillon noted the status of recommendations and accompanying presentations to Congress for the Mutual Assistance program. He cited Eric Johnston’s efforts to develop grass-roots support. He stated that the carry-over for “pipeline” purposes had been reduced from $6 billion to less than $3 billion this year. It will be reduced further in the next two years to a bare minimum. Mr. Dillon hoped that the Defense Department could advance the timing of its part of the Mutual Security budget preparations so that specific programs could be developed in time for Congressional presentations.
Mr. Dillon expected that problems involving the coordination of the Development Loan Fund with the Export-Import Bank would be worked out very shortly. He also noted how the slowness of other countries in submitting detailed applications for loans had held back the program.
Mr. Dillon pointed to the need for giving attention to the problem of the mounting level of local currencies held by US citizens, a matter causing difficulty for both P.L. 4802 and Mutual Assistance activities. He indicated that State might soon recommend the establishment of a Cabinet-level Committee on this.
The President again expressed his concern with the problem of providing almost unlimited amounts of local currencies to traveling Congressmen and their staffs. Mr. Herter stated that the Executive Branch had no discretion in this matter for which the responsibility rested squarely with the Congress. The President asked that the matter be reviewed, particularly as to any Executive responsibility for stating publicly the amounts disbursed.
[Here follows discussion of “Reciprocal Trade Legislation” (see Document 63), “Scientific Cooperation and Research,” “Education,” “Labor Legislation,” “Special Messages,” “Preparation of Draft Legislation,” and “1958 Operation Alert.”]