24. Memorandum From the Administrator of the Agency for International Development (Bell) to President Johnson1
SUBJECT
- Military Assistance Funds, FY 1965
The FY 1965 military assistance appropriation ($1.055 billion) does not provide sufficient funds to meet substantial unforeseen combat requirements which have arisen in Laos and Vietnam. The add-on requirements for Laos and Vietnam to date total $47.3 million above the $221.4 million requested from and appropriated by the Congress for these countries. Further requirements for Vietnam are quite probable, stemming from discussions with Ambassador Taylor, and recent cuts in ammunition estimates for Laos may need to be restored.
Absorbing these extra burdens within the current availability of MAP funds would result in reductions in certain country programs which would be politically and militarily unacceptable. The reductions would have to fall largely in Korea, Taiwan, Greece and Turkey, in each case coming on top of severe reductions necessitated by shortages of funds in the prior two fiscal years.
It is conceivable that the problem may be met in part, later in the fiscal year, by future reductions in requirements outside of Southeast Asia, or increases in recoveries of prior year funds. There is no basis at present however for anticipating such relief.
Accordingly, we believe the national interest requires us to proceed, as we did last year, to program an extra $50 million for MAP, which will be funded, insofar as that turns out later in the year to be necessary, by transferring $50 million from the Contingency Fund to the military assistance appropriation.
In making these plans, all of us are aware that the Contingency Fund contains only $100 million this year and that unforeseen requirements [Page 82] for the Alliance for Progress or for other purposes may result in substantial claims on these funds later in the year. At the present time, however, we believe a proper weighing of the probabilities supports the desirability of committing up to $50 million for a MAP transfer.
I recommend, therefore, your approval of a funding plan for military assistance in the present fiscal year which may require a transfer of up to $50 million from the Contingency Fund. The Departments of State and Defense concur in this recommendation.
- Source: Washington National Records Center, RG 286, AID Administrator Files: FRC 68 A 2148, DEF 19 Military Assistance, November–January, FY 1965. Secret. Drafted by Bell and cleared by William M. Leffingwell (DOD/ISA) and Howard Meyers (G/PM). The memorandum was submitted to President Johnson under cover of a memorandum, December 10, to Kermit Gordon from Bell who wrote: “The attached memorandum requests Presidential approval for a MAP funding plan for FY 1965 which may require up to a $50 million transfer from the Contingency Fund later in the year. This is a similar proposal to one we worked out last year. I have forgotten how we obtained the President’s approval at that time, but I assume the right way to do it is through you, and accordingly I would appreciate it if you would consider the matter and, assuming you concur, request the President’s approval. I am sending a copy of the memorandum to Mr. Buddy.”↩
- Printed from a copy that indicates Bell signed the original.↩