Foreign Relations of the United States, 1969–1976, Volume IV, Foreign Assistance, International Development, Trade Policies, 1969–1972

111. National Security Study Memorandum 45¹

Washington, April 21, 1969.

TO

• The Secretary of State
• The Secretary of Defense
• The Secretary of the Treasury
• The Secretary of Agriculture
• Director of the Bureau of the Budget
• Administrator of the Agency for International Development
• President of the Export-Import Bank

SUBJECT

• U.S. Foreign Aid

The President has directed the preparation of a paper on the objectives of the U.S. economic assistance program and its relationship to overall U.S. foreign policy.² The paper should re-examine all of the basic assumptions underlying our aid effort, particularly the relationships among aid, economic development, and political stability. It should analyze the effectiveness of past and present U.S. programs in achieving objectives of interest to the United States, such as: economic development, evolution of democratic and pluralistic societies, attitudes toward the United States, positions on foreign policy issues of concern to us, impact on U.S. national security, commercial gains to the United States. Finally, the paper should explore the implications of its findings for the budget level and organization of our aid effort, and methods of presenting the program publicly. The findings of the paper will represent a major input, along with that of the outside commission being set up at the President’s direction, to the final Administration response to the Javits Amendment.³

The President has directed that the Ad Hoc Working Group created by NSSM 4 and chaired by the Under Secretary of State be responsible for the preparation of this paper.⁴

Henry A. Kissinger

1. Source: National Archives, RG 59, S/S Files: Lot 80 D 212, NSSM 45. Limited Official Use.
2. See Document 109.
3. The Javits Amendment to Section 501 of the Foreign Assistance Act of 1968 required a thorough assessment of the overall foreign assistance program and a report to Congress by March 31, 1970.
4. Regarding the Ad Hoc Working Group, see Document 1. On September 19 Under Secretary Richardson sent a memorandum to members of the Under Secretaries Committee informing them that with the appointment of the Peterson Task Force (see Document 119) he wished to proceed with the internal review of foreign aid issues as directed in NSSM 45. He also informed the Committee he had designated the Ambassador to Chile, Edward M. Korry, to assist him with the study. (National Archives, RG 59, S/S Files: Lot 80 D 212, NSSM 45)