37. Memorandum From Secretary of State Rusk to President Johnson1
SUBJECT
- Aid Legislation
The Senate Foreign Relations Committee has requested that David Bell and I meet with them on Thursday morning, August 12.2 The purpose of the session will be to receive Administration suggestions for ending the present deadlock in the conference committee on foreign aid [Page 102] legislation and to seek commitments from the Executive Branch that next year it will request aid legislation that will satisfy the major concerns of the Foreign Relations Committee. If our suggestions and commitments satisfy these concerns, the Senate Conferees would, presumably, recede on the two issues now in dispute—the two-year authorization and Senator Morse’s Planning Committee.
The principal issues on which we shall have to comment are:
- (1)
- The question of a multi-year authorization;
- (2)
- The nature and scope of a study of the present assistance program;
- (3)
- The extent to which total U.S. assistance should go through multilateral channels.
Multi-year authorization
I propose that we express the intention of seeking a multi-year authorization next year for all categories of assistance.
The length of the authorization could be for two or more years, and I propose if possible to avoid expressing a preference. Chairman Morgan has told us privately he will have no objection if we testify for a two year authorization.
Nature and Scope of a Study of the Present Aid Program
As you know, the Senate bill “terminates” the present assistance program and creates a Planning Committee to design a new program. This proposal, as written by Senator Morse, is wholly unacceptable because it “terminates” assistance, establishes guidelines for a new program that are unrealistic and impinges on the responsibility of the President for conducting foreign policy.
I propose to restate our objections to this Planning Committee proposal but suggest as an alternative, in recognition of Congressional concerns, that the Executive Branch will conduct a special study of the number of countries receiving assistance; the requirements for assistance and the prospects for achieving our objectives and terminating assistance; the contribution of other developed countries; and the appropriate relationship between bilateral and multilateral assistance.
Such a study could include Congressional participation and/or private, impartial institutions or individuals, but I believe it best to leave that indefinite for the present.
Multilateral aid
Throughout the presentation of this year’s program and legislation, we have stated that the Administration favors increasing the use of multilateral channels for aid wherever that is feasible and in the U.S. interests.
[Page 103]I propose to restate our support for increased use of multilateral channels, citing our support for the proposed Asian Development Bank, our extensive and increasing use of World Bank Consultative Groups, and our encouragement for the enlargement of the resources of the I.D.A. In addition, I will point out that the Administration has consistently asked for the removal of the ban, imposed by the House Appropriations Committee, on the use of up to 15% of A.I.D. funds for I.D.A. under Section 205 of the authorization act.3 We would propose to use the authority, if we obtain it, to seek to induce additional contributions to I.D.A. over and above the regular contributions agreed to in the course of the I.D.A. pledging process.
- Source: Washington National Records Center, RG 286, AID Administrator Files: FRC 69 G 1866, DEF 19 Military Assistance, FY 1966. Limited Official Use. A stamped notation on the source text indicates the memorandum was received in McGeorge Bundy’s office on August 7. A handwritten notation reads: “L[yndon] 8/7/65 7:30 PM.” An attached note reads: “Alice: For info: Bator scribbled on his copy of this: ‘FMB called Bell to say P. says O.K.’ Dorothy”↩
- Secretary Rusk and Administrator Bell met with members of the Senate Foreign Relations Committee at 9:30 a.m. on August 12 to discuss the foreign aid bill. (Johnson Library, Rusk Appointment Book, 1965)↩
- 79 Stat. 653, P.L. 89–171, the Foreign Assistance Act of 1965, approved on September 6, 1965.↩