Office of the Historian

840.70/10–2744: Telegram

The Acting Secretary of State to the Chargé in the United Kingdom (Gallman)

Washington, November 4, 1944—11 p.m.

9259. For EITO Delegation and Williams, reEmbs 8900, October 18 and 9259, October 27.71 The President has approved the signature and ratification of the EITO Agreement as an Executive Agreement on the basis of the Anglo-American Draft submitted to the Conference. Therefore, for purposes of calculations by Interim Commission under Article V., Section 1, agreement may be treated as an Executive Agreement.

Department understands that it might be possible, subject to approval of the President and the Bureau of the Budget, for U.S. contributions to EITO to be made from the President’s Emergency Funds. It is assumed annual expenditures of headquarters organization would not be large and that field operations might be made self-supporting.

In applying for use of the President’s Fund the following factors should be borne in mind:

(1)
Appropriations from such funds for participation in EITO only can be made for a period of one year. After the initial 12 month period, Congressional appropriations are necessary. However, the expenditure of such funds by EITO would not be limited to the 12 month period but could be made over any required period.
(2)
In making calculations, consideration might be given to setting up a budget for a 2 year period and the request for contributions be made on that basis. If this budget proves inadequate within the 12 month period, a further contribution based on a supplementary budget could be requested.
(3)
The general criteria used by the Bureau of the Budget in passing on appropriations from the President’s Emergency Funds are: (1) that the funds will be used for purposes of national defense. [Page 853] (Since EITO would further the needs of our military in occupational and transitional periods, this point seems covered.) (2) That the appropriation is not for the purpose of increasing existing appropriations. (This would not be a factor in contributions to EITO.)

Foregoing should give Clay and Williams sufficient background to work on. Obviously, the form EITO might take will influence their calculations.

Stettinius
  1. Latter not printed.↩