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

229. Memorandum From Director of the Bureau of the Budget Stans to the President’s Assistant (Persons)⁰

December 10, 1958.

SUBJECT

• Meeting with the President, Secretary of Treasury Anderson, Assistant to the President Persons, and Budget Director Stans on December 3, 1958¹

The Budget Director explained to the President that budget allowances for most of the agencies had now been worked out, and that the matter of a balanced budget hinged upon figures still to be determined for the Department of Defense and the Mutual Security Program. He stated that while he had originally urged, and still believed, that the Defense budget should not exceed $40 billion, there was still room for balancing the budget if Defense were allowed as much as $40.8 billion in expenditures, and if the Mutual Security expenditures were limited to $3.5 billion.

The President indicated his strong desire for a balanced budget. Secretary Anderson reviewed the various reasons in support of so doing, including particularly the need of preserving the integrity of the dollar. The President indicated that he would go along with the $3.5 billion figure for Mutual Security and suggested that the cut be made principally from the Military Assistance Program. He also supported the effort to resolve the Defense budget at $40.8 billion, and directed General Persons to meet with Secretary McElroy along these lines.

M.H.S.

0. Source: Eisenhower Library, Whitman File, Eisenhower Diaries. No classification marking.
1. The meeting began at 11:18 a.m. and ended at noon. (Ibid., President’s Daily Appointments)