400. Memorandum from Dungan to Hamilton, December 81

[Facsimile Page 1]

Last week when we spoke I promised you that I would set forth some of the problems which I see in the AID agency to which I think we should address ourselves. Here they are:

Program Policy—Coordination Military Economic

All the reports which I have had indicate that neither the Kitchen operation nor Chenery really are on top of the military economic aid problem. I believe that your Program Review shop has to be vastly strengthened and that a person who can deal hardheadedly with both State and Defense needs to be put in charge of it. It may be that L will be able to undertake this task with the support of another person who is strong on the military side. I have had very highly recommended to me a former MAAG chief in Tokyo who is now retired, one William Biddle. I do not recall Biddle but the MAAG in Tokyo was always well run and they were sensitive there to the problem of military economic balance as anywhere in the Far East. My recommendation on this problem at this point would be to present a strong person like Biddle into the picture and place him in the Program Review shop on an equal level with Chenery with L taking major responsibility for the coordination of the program and taking care of most of the Agency’s recommendations to Defense.

Congressional Presentation

I believe we discussed this enough for you to have an idea of how strongly I feel about the need to come up with a more simple congressional presentation than we have had in the past. This ties very directly to what I hope will be a streamline program presentation within the Agency itself which may not be possible to fully install before the congressional presentation has to be made. The advantages of a [Facsimile Page 2] simplified presentation are fairly obvious—reduced manpower, the possibility of joint presentation to Foreign Affairs and Foreign Relations Committees, less detail, etc. The point here, however, is that someone or a small group should be set to work promptly to develop a new pattern for the congressional presentation so that you can be [Typeset Page 1654] set on this as early as possible in January. Then it will be necessary for you to go and sell this new mode of presentation to the appropriate members of the House and Senate. I might also add that a revised mode of presentation would have the advantage of dramatizing the “new look”—who knows, in the process we may even be able to get a new look.

Assistant Administrator for Administration

While I do not lack confidence in the present incumbent, I think it could be most salutary if we could settle on a new and vigorous person in this slot which, as you know, controls the vital financial, personnel, and other housekeeping aspects of the agency. You may in your trip have already found this fellow. I certainly hope so. In addition to the Assistant Administrator I think it is terribly important that we appoint a personnel fellow in whom both you and we have complete confidence. I need not tell you what a difficult job this is or how important it is.

I think we covered most of the other points in our conversation the other evening. I would like an opportunity to discuss these and other problems at your earliest convenience. If possible I would hope that we can have a regular meeting perhaps once a week. To save time perhaps I might sit in on some of the staff meetings which you mentioned that you are now going to have on a regular basis.

Ralph A. Dungan
Special Assistant
to the President
  1. AID internal problems and possible resolution. No classification marking. 2 pp. Washington National Records Center, RG 286, AID Administrator Files: FRC 65 A 481, White House, FY 1962.