142. Briefing Memorandum From Jeffrey Garten and Curt Farrar of the Policy Planning Staff to Acting Secretary of State Christopher1
President’s Decision on the Humphrey Bill
Yesterday the President made these decisions on the Humphrey Bill.
—He endorsed the Bill as a vehicle for legislative mark-up this year.
—He agreed to keep the IFI authorities in Treasury for now; on the basis of experience with the new inter-agency coordinating mechanism he could see whether there is a need to transfer authority for IFI’s at a later date.
—He agreed that we should ask Congress to make the language concerning Presidential authority in the area of IFIs and coordination more general to give the Executive Branch more flexibility.
—He indicated that the present arrangements for PL 480 are not satisfactory and asked for more specific proposals as to how PL 480 might be handled within the new coordinating arrangements.
—He agreed that the new Administrator would report both to the President and to the Secretary of State and that he would submit his budget to the President via the Secretary of State. However, he also indicated (in marginal comments) that we should use the intelligence community DCI model for budget procedures (which causes some confusion, as noted below).
—Finally, he approved all the issues which were agreed by the PRC members: the establishment of a semi-autonomous Foundation for Technological Collaboration; IDCA responsibility for reviewing and advising on the policies of all UN activities with development missions; the establishment of an International Development Institute to support the Peace Corps and private voluntary organizations; transfer of OPIC as provided in the Bill; the need to seek changes in the Bill to ensure that it does not interfere with existing security assistance programs; and transfer of the Peace Corps with substantial autonomy.
We worked with Henry Owen on letters to be sent to Sparkman and Zablocki. Frank Moore is supposed to be in touch with relevant staff members during the next few days.[Page 572]
As we see them, there are two potential problem areas for us:
—Although the President indicated that the IDCA budget should go through the Secretary of State, in referring to the DCI model he created the impression at OMB and AID that the IDCA Administrator, like the DCI, would submit his budget directly to the President and then have it reviewed by the PRC.
—It will be difficult to see how the entire coordination system will work until PL 480 arrangements are settled and that is likely to drag on.
Follow-Up: At a meeting in Henry Owen’s office yesterday2 follow-up work was assigned to be completed in the next two weeks or so:
—State, working with AID and Treasury, would come up with a plan for activating the new interagency coordinating mechanism.
—State, working with AID, will come up with draft legislative language of how the UN organizations should be treated in the Bill.
—Defense, working with State, will draft specific language concerning the security assistance issues.
—Agriculture and AID will work on specific provisions for PL 480.
—OMB will work up draft language concerning the budget procedures. (As noted above, it is likely that there will be an interagency dispute over the interpretation of the President’s decision in this area.)
—AID will put together detailed legislative language on personnel, the International Development Institute, and OPIC.
—Frank Press will do a paper on a Technological Foundation and make proposals as to how much of this will have to be set up by legislation.
We agreed to meet in Henry’s office on Wednesday, April 5 to get a status report of our various efforts. We are holding a meeting of the State and AID people this afternoon at 2:30 to get us organized to do our part of the project.