327. Memorandum from Bullitt to Executive Committee of Cabinet Committee on Balance of Payments, May 291
In his memorandum of April 20, 1963 to the Cabinet Committee, the President indicated that he wished to announce around July 1 the implementation of an action program, together with certain other proposals, to reduce the balance-of-payments deficit, as outlined in the Cabinet Committee’s memorandum to him of April 6.
The following agencies have the responsibility for the specific programs indicated:
1. State.
(a) Securities and Exchange Commission requirements concerning information provided by foreign borrowers in the U.S.
(b) Assessing foreign tax advantages for exports.
2. Defense.
Actions to be completed by end CY 1964 with target of gross reduction in annual rate of dollar expenditures abroad between $300–400 million below FY 1963 level.
3. Commerce.
(a) White House Conference on Export Promotion.
(b) Tourism—“See America Now” program.
(c) Coast-wise and ocean shipping, and other noncompetitive freight costs.
(d) Review of U.S. anti-trust legislation.
4. Budget.
(a) Gold budget—screening and readjustment of expenditures abroad by departments and agencies other than Defense and AID to achieve indicated annual savings of $50–75 million per year.
(b) Government-wide uniformity in procurement practices.
(c) Savings from improved use of P.L. 480 currencies.
5. AID.
(a) Action to further reduce AID expenditures resulting in payments of dollars abroad, with target of keeping such expenditures to $500 million or less in FY 1965.
6. Agriculture—Director of Food for Peace.
[Typeset Page 1449](a) Steps to achieve savings of $35 million per year, in addition to those included within the gold budget review through administration of P.L. 480 programs.
(b) In addition, it is understood Agriculture has under review certain other measures which could substantially benefit the balance of payments. The President will want to include in his announcement as much of the results of this review as possible, and they should be included in Agriculture’s submission.
Would you kindly submit to me, by June 7, a report on what has been done to accomplish the actions directed by the President in his memorandum of April 20 so that a report can be prepared for review by the Committee on June 17, prior to transmission to the President.
The Treasury Department is responsible for action on the Committee to Promote Investment in America.
- Assigns Agency responsibility for specific actions to address balance of payments deficit. Confidential. 3 pp. Kennedy Library, Herter Papers, Balance of Payments, Box 6.↩