236. Memorandum From Acting Secretary of State Herter to President Eisenhower0
SUBJECT
- Legislative Prospects for Mutual Security Program
Any cuts Congress may make in this year’s Mutual Security Program would pose considerably greater risks than has been the case in the past. This is so because of an increase in economic needs throughout the world as compared with last year and because of the decrease in the Military Assistance pipeline and the austerity of the figure requested for Military Assistance. A careful study indicates that if Congress should reduce the Program below the level of $3.75 billion we may well face serious dangers to our security position throughout the world. (See attachment for breakdown of $3.75 billion figure.)1
Last year Congress voted $3.3 billion for Mutual Security as against a request for $3.94 billion. It is now reasonable to expect last year’s appropriation will be raised by some $100 to $150 million, as a [Page 450] result of the $225 million deficiency request for the Development Loan Fund now before Congress. This, if approved, will give us a total of something over $3.4 billion for Mutual Security in the fiscal year 1959. This figure has proved to be an absolute minimum and its austerity has been the cause of considerable difficulty in administering the Program. So low a figure would definitely be inadequate for FY 1960.
A careful check of Congressional opinion indicates that opposition to the Program at present is more widespread and vigorous than at any time in the past. This is so because in addition to those who have traditionally opposed the Program, a number of other members of Congress favor large cuts this year for purely domestic, political reasons having to do with such things as the overall Administration position on domestic spending programs of the welfare type and the decision to undertake no new public works starts this year.
As a result, in the absence of extraordinary and sustained high-level efforts, and in the absence of some world crisis of frightening proportions, we can expect that this year’s Mutual Security appropriation will be cut to a figure of around $3 billion, or even less. The effects of such a cut would be grave indeed. Since so much of the opposition this year is domestic in character and does not appear to be responsive to persuasion by the Department of State, it is becoming clear that a strong and sustained effort led by the White House along the lines of your recent persuasive efforts and having all-out support from all elements of the Administration as well as from civilian groups will be necessary if the Program is to be kept relatively intact. May Mr. Dillon and I have the opportunity to discuss the outlook with you, General Persons and Bryce Harlow.2
- Source: Eisenhower Library, Whitman File, Dulles–Herter Series, March 1959, Mutual Security. Secret Enclosure. Another copy of the memorandum indicates Dillon drafted it on March 18. (Department of State, Central Files, 700.5–MSP/3–1959)↩
- Not printed.↩
- No record of such a meeting has been found. During a meeting on April 3 with Herter and Dillon, however, Eisenhower asked if Dillon had read the draft of a speech the President was to give at Gettysburg College the following day. Dillon replied he had and stated he felt it would “help the Mutual Security Program a great deal.” (Memorandum of conference with the President; Eisenhower Library, Whitman File, Eisenhower Diaries) For text of the address, see Public Papers of the Presidents of the United States: Dwight D. Eisenhower, 1959, pp. 309–317.↩