220. Supplementary Notes of the Legislative Leadership Meeting0
Mutual Security—An extensive discussion covered Republican and Democratic attitudes in the House, the need for extensive public support, and from the Administration viewpoint the importance of the program to resisting Communist inroads abroad. The President cited the two hour conversation he had had the day before with the Shah of Iran.2 The Shah made very clear what could happen from Communist inroads if the free world didn’t maintain its efforts. Given time, the Shah would have the Iranian economy in sufficiently good shape to withstand communism on its own. The fact that there was at least this much encouragement was strictly the result of our mutual security assistance in past years. Not to be forgotten was the strength of the Communists in Iran only five years before. But, said the President, it’s disheartening to work so hard with a country only to have the Appropriations Committee threaten to wreck the effort.
Sec. Dulles stressed that no areas of the globe had been lost to Communism since 1952, but that happy situation could well change if the House Committee cuts were allowed to stand. The U.S. would not be able to put funds into each of the critical areas. It would be almost serving notice that we would have to take some losses.
Sec. Dulles felt that once Republicans forced the issue on the important points, the Democrats would have to give some support.
[Page 421]When mention was made of Rep. Passman’s effective allegations of waste in Laos, a situation which had long since been corrected, the Vice President commented that if it hadn’t been for similar “waste” in Iran some years ago, the Shah would not be visiting the United States today.
Rep. John Taber pointed out that on various critical votes taken in Committee, the most support forthcoming from the Democrats was seven votes out of thirty, whereas as many as thirteen Republicans out of twenty supported the President’s request. He thought Speaker Rayburn was playing the same old game as last year and would deliver the Democratic votes against the restorations. Mr. Taber said that Rep. Rooney was doing his best for the program, but it was not good enough.
At issue were three things: (1) a $75 million increase in defense support, (2) increasing the Development Loan Fund from $300 million to $500 million, and (3) increasing the President’s contingency fund by $55 million. Approval of all three would still be $545 million short of the President’s request.
Rep. Arends said he had begun a poll of Republicans, and thus far it had shown a majority of responders favoring the first but not the other two.
The President said he was really frustrated when one Appropriations Committee action was to push an unwanted billion dollars at him while another was to take away desperately needed funds.
Rep. Vorys pointed out that Rep. Tom Morgan was lobbying his colleagues on the Foreign Relations Committee to support the bill but would not commit himself.
The Vice President feared that at least two of our Latin American neighbors would be oriented within two years towards the Soviet bloc unless we got the Development Loan Fund Money to assist in their projects. The President added that he had heard from a number of businessmen that investments of private capital abroad would slow up unless the Federal government effort also continued.
Much attention was given in the discussion to the possibility that the Eric Johnson Committee would be able to encourage Congressional support.
The President said he would invite Mr. Rayburn for breakfast or lunch for a discussion of the matter.
As for Senate action, Sen. Knowland foresaw some difficulty, since the Senate cannot be expected to appropriate the full amounts approved in the authorization bill. Sen. Saltonstall noted that the toughest opponents of Mutual Security are right in the Appropriations Committee. Sen. Bridges stated his concurrence in this discouraging outlook, but Sen. Dirksen said he was always optimistic and felt that most of the funds could be restored. He believed much could be done [Page 422] by a tough approach in Conference. Sen. Knowland thought it would be helpful to Senate leaders, especially in Conference, if the level of appropriations made by the House could be gotten somewhat above the Committee proposal, even if this meant having to settle for something less than was being tested in the poll.
Rep. Jos. Martin summarized the discussion as showing the need for some fighting statements from the top leaders and for lining up all the individual votes that could possibly be obtained.
The President concluded the discussion by inviting the Leaders to call him at any time, night or day, if they saw any additional way he could help.
[Here follows brief comment on the economic situation.]
- Source: Eisenhower Library, Whitman File, Legislative Meetings. Confidential. Drafted by Minnich.↩
- The meeting took place at the White House. The time of the meeting is taken from the President’s Daily Appointment Books. (ibid.)↩
- A memorandum of this conversation is scheduled for publication in volume XII.↩