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  4. Document 12

12. Memorandum From the Administrator of the Agency for International Development (Hamilton) to President Kennedy 0

Washington, June 28, 1962.

SUBJECT

  • A.I.D. Actions Affecting the U.S. Balance of Payments

In accordance with your memorandum of June 20,1 responsible officials of A.I.D. have reviewed with Carl Kaysen all proposed A.I.D. actions that affect the U.S. balance of payments. It is estimated that of a total proposed commitment of funds of $493 million for the remainder of fiscal year 1962, less than $3 million will be used for procurement from non-U.S. sources. A statement covering each of these actions has been transmitted to the White House.2

After reviewing these actions, Mr. Kaysen stated that there was no objection to A.I.D. proceeding with these commitments.

Subject to your approval, I suggest that in the future A.I.D. submit to you on a weekly basis all proposed actions to commit funds that may result in procurement from non-U.S. sources in the amount of one million dollars or more so that you may pass upon the proposed action. This agency will also advise you every two weeks of the total funds committed and the portion expected to be expended outside the United States.3

Fowler Hamilton
  1. Source: Kennedy Library, National Security Files, Subjects Series, Balance of Payments and Gold, 6/62-3/63. No classification marking.↩
  2. See footnote 3, Document 144.↩
  3. A six-page list of AID actions affecting the U.S. balance of payments, undated, was transmitted under cover of a June 27 memorandum from Holis B. Chenery to Kaysen. (Washington National Records Center, RG 286, AID Administrator Files: FRC 65 A 481, Development Financing,FY 1962)↩
  4. In a July 2 memorandum to Hamilton, President Kennedy replied that the AID reporting scheme proposed in Hamilton’s June 28 memorandum was “satisfactory as far as it goes,” but he requested that “you also add each proposed commitment of $2-1/2 million or more whether or not it may result in expenditures of dollars outside the United States.” (Kennedy Library, National Security Files, Subjects Series, Balance of Payments and Gold, 6/62-3/63)↩