334. Action Memorandum From the Deputy Under Secretary of State for Administration (Macomber) to Secretary of State Rogers1


  • Reorganization of 7th Floor

In response to the Task Forces’ recommendation, Messrs. Irwin, Johnson, Samuels, Eliot, Pedersen, Cargo and myself have examined the current 7th Floor organization. We wish to propose to you certain changes, based on some fundamental management concepts. None of the changes are intended to alter or impede in any way your present operational style.

The two fundamental principles that we would like to emphasize are (a) the collegiate approach to management, under your and the Under Secretary’s direction and control, with the Under Secretary acting on your behalf, and (b) aggressive 7th Floor leadership of the Department and of the foreign affairs community through the use of modern management techniques of planning and evaluation.



We (except for the Under Secretary) strongly urge that the Under Secretary be given the title of Deputy Secretary to provide clearer evidence of his responsibilities, not only as your alter ego but as your principal deputy. The new title would also symbolize your reliance on the Deputy Secretary for insuring coordination of foreign affairs activities, including guidance to the Department and to other agencies in the allocation of resources. It should be noted that the second man in the new domestic departments will have the title of Deputy Secretary. This fact has led OMB to suggest that we also request a title change for the Department’s Under Secretary.

The Under Secretary dissents from this recommendation feeling that no change in name is required for him to fulfill his functions, that he is reluctant to give up the tradition associated with the present name of the office, and that a change will simply cause confusion.

Regardless of title, we do recommend that the Under Secretary (Deputy Secretary) be responsible to you for the management of the Department’s planning, evaluation and resources allocation processes, [Page 742] and that the delegation of authority in these areas go through him to the Deputy Under Secretary for Administration.

Approve (1) Title of Deputy Secretary2

or (2) Title of Under Secretary

Approve Recommendation


If you should approve the title of Deputy Secretary, then I would recommend that a new position at Level III entitled “The Permanent Under Secretary” be established in lieu of the present Under Secretary for Political Affairs. This change is recommended to reemphasize the Under Secretary for Political Affairs’ position as the number three officer in the Department and to eliminate the confusion that the present title creates. Under normal circumstances, this position would be filled by a career officer whom we would consider the senior officer of the Foreign Service.

The Under Secretary has certain reservations about this recommendation. He feels that the new title would create new confusion with the present “Under Secretary” and that it could be interpreted as continuing the present imbalance between “political affairs” and “economic affairs” a balance which Recommendation 3 below is designed to redress.

Keep present title3

Change to new title

To reinforce Department leadership in economic matters, we recommend that a new position of Under Secretary for Economic Affairs be established, assigning to it responsibility, within the Department, for: (1) coordination of foreign economic policies and programs, (2) representing the Department in your absence on the Board of the International Development Corporation and the International Development Institute, (3) chairing the Operations Group of the Council on International Economic Policy and (4) representing the Department in that Council in your absence. We recommend that these functions be assigned to the present Deputy Under Secretary for Economic Affairs until such time as the position of Under Secretary for Economic Affairs is established.4
To give concrete support to the managerial role of the Under Secretary (Deputy Secretary) we recommend that the management functions (personnel, budget, evaluation and methods development), currently delegated directly to the Deputy Under Secretary for Administration, be delegated to him through the Under Secretary (Deputy Secretary). We further recommend that the present title of the Deputy Under Secretary for Administration be changed to Deputy Under Secretary for Management and Resource Allocation. This Deputy Under Secretary would exercise the Under Secretary’s (Deputy Secretary’s) responsibilities for allocation of the Department’s resources, for evaluation of overseas programs and of the Department’s domestic operations, for insuring that our new policy analysis and resource allocation system is operational and for providing management consulting services. He would also be available for other assignments as the Under Secretary (Deputy Secretary) may determine.5

OMB has urged us to reconsider our previous decision concerning the salary level of the Coordinator for Security Assistance. Our position to date has been that the responsibilities could be adequately and appropriately discharged by an officer at the Deputy Under Secretary level (Level IV). OMB maintains that in order to provide him with adequate “clout” he should be at the Under Secretary level (Level III). They also feel that this would be clear evidence of our desire to run an effective program. OMB also points out the Executive Directors of IDI, IDC and OPIC will be at Level III. Organizationally, we could live with another Level III officer although the rank might be somewhat overinflated. Regardless of the rank, the Coordinator would have supervisory responsibility for the new Economic Supporting Assistance Administration and for PM’s activities in the military assistance area. The Under Secretary (Deputy Secretary) would continue to be ultimately responsible within the Department for the general supervision of the security assistance program.

Approve Level III for Coordinator

Approve Level IV for Coordinator6

To assist in linking resource allocation to policy analysis, in strengthening our long-range planning capability, in the coordination of foreign assistance programs, in the substantive support of the Under Secretaries Committee and the Operations Group of the CIEP, and in providing substantive staff analysis on issues raised with the seventh floor principals, we recommend that a policy analysis and resource allocation capability be added to and the economic analysis capabilities be strengthened in the Planning and Coordination Staff.7
To improve the Department’s evaluation capability, we recommend that a Management Evaluation Group be created to evaluate the implementation of policies and programs both in the Department and overseas, including programs of other agencies for which you have a coordinating responsibility. Eventually, we would hope to amalgamate this Group with the Inspector General, Foreign Operations. This Group would report directly to the Under Secretary and where appropriate to the Secretary, although the Deputy Under Secretary for Management would be responsible for its day-to-day supervision (see recommendation 4).8

If you should approve the above recommendations, we will prepare the necessary implementing documents including the appropriate legislation for the establishment of new positions and for title changes. We believe that we should, at the same time, obtain legislative approval for some of the other appointment actions we have taken administratively. We should include in our legislative proposal specific authorization for Level IV appointment authority for the Executive Secretary, the Director General, the Director of the Planning and Coordination Staff, the Director of the Bureau of International Scientific and Technological Affairs and the Coordinator for Oceanic Affairs.9 We are requesting a Level IV position for the Director of PM in the Security Assistance legislation.

  1. Source: National Archives, Office of the Deputy Under Secretary for Management, Management Subject Files: Lot 76 D 235, 7th Floor Organization. No classification marking. Sent through U. Alexis Johnson.
  2. Rogers initialed this option on May 18. The Foreign Relations Authorization Act of 1972, approved July 13, 1972 (Public Law 92–352; 86 Stat. 490), created the position of Deputy Secretary of State to replace the Under Secretary of State.
  3. Rogers initialed this option on May 18.
  4. Rogers initialed his approval on May 18. The Foreign Relations Authorization Act of 1972 created the permanent position of Under Secretary of State for Economic Affairs; the position of Deputy Under Secretary for Economic Affairs was discontinued.
  5. Rogers initialed his approval on May 18. In the margin he wrote: “Talk to me on this,” which is crossed out. In returning the memorandum to Macomber, Eliot noted in his May 18 covering memorandum, which is attached, that Rogers wanted to talk to Macomber about Recommendation 4. The Department by administrative action changed the title of the position of Deputy Under Secretary for Administration to Deputy Under Secretary for Management on July 12, 1971.
  6. Rogers initialed this option on May 18 but drew an arrow to indicate that he meant the other option, and this is confirmed in Eliot’s covering memorandum.
  7. Rogers initialed his approval on May 18. Rogers announced the institution of the Policy Analysis and Resource Allocation (PARA) system on July 6; see Document 336.
  8. Rogers initialed his approval on May 18. Rogers announced the formation of a new Management Evaluation Group on July 6; see Document 336.
  9. Rogers forwarded draft legislation to Shultz under cover of a July 31 letter. (National Archives, RG 59, Central Files 1970–73, ORG 10) Shultz responded in an October 28 letter to Macomber that OMB concurred with the proposals with the exception of Level IV appointment authority for several positions. (Ibid., Policy Planning Council, Subject Files: Lot 73 D 363, Seventh Floor Reorganization)