Foreign Relations of the United States, 1950, East Asia and the Pacific, Volume VI

851G.00TA/11–2250: Telegram

The Secretary of State to the Legation at Saigon

confidential

Washington, November 22, 1950—5 p. m.

616. I. General.

FYI Dept tentatively allocated $2 million Point IV¹ funds for new bilateral technical assistance projects in SEA and Phil.

II. Div responsibilities State–ECA–USIS.²

To avoid duplication ECA and State, fol agmt reached Wash for all SEA:

a. ECA handle propects related economic development in fields of agri (including fisheries and forestry), industry (incl power, transport, mining, communications and water resources), public health, relief and rehabilitation and housing. Incl assignment technicians and training both locally and US.

b. State, under Point IV, will undertake projects principally in:

1. Field of Education such as mass education, vocational training, assistance to teacher training institutions and universities (with exception those projects which are normal USIS functions such as English teaching, furnishing books to libraries, training in use of audio-visual aids, etc.)

2. Activities of scientific nature (such as activities normally performed Weather Bur, Coast and Geodetic Survey), important economically but neither among Griffin recommendations nor an integral part of ECA projects.

c. Responsibility other fields such as public administration, will be as mutually agreed between State and ECA on project by project basis.

III. Point IV Program for Indochina.

Of $2 million all SEA $400 thousand tentatively earmarked Indochina Point IV projects.

a. Dept considering $350 thousand for educational projects if can be wisely programmed within Point IV policies. Since Griffin Mission made no specific recommendations for Indochina re projects in fields such as mass education, vocational educ, teacher training, etc., Leg requested develop specific proposals. Discuss with appropriate representatives Fr and Assoc States Govts and obtain official requests for programs mutually agreed upon. Transmit Dept for approval. To extent possible in Indochina, ascertain Leg proposals do not dupl ECA, USIS or UN plans. Provide Dept most specific details possible on projects and suggested qualifications or unique skills of technicians to assist immed recruitment.

b. Dept suggests education activities be combined into single Point IV project administered by educational field party responsible Chief Diplomatic Mission.

c. Remaining $50 thousand tentatively available for projects in other Pt IV fields, such as public administration (subject to agreement with STEM),³ scientific matters, or additional educational projects.

d. Dept willing spend substantial funds equipment and supplies only when US technicians working on joint projects with Indochinese and where equipment contributes clearly to econ development. Pt IV program shld not be considered supply program rather exchange of technical know-how.

e. In view requirements Pt IV legis that, among other conditions, assistance shall be made available only where country being assisted pays fair share cost program and endeavors make effective use results of program. Dept expects other countries pay local communications, local transport costs technicians, provide needed office space, secretarial help, local labor as required, and furnish appropriate indigenous professional personnel work with US technicians. Where such conditions unrealistic, alternative contributions can be considered. Recognize some these conditions may be impossible in Indochina. Request Leg suggest, after consultation for govts some realistic contribution in order US may be assured effective utilization of technical assistance provided.

f. Advice regarding negot and certain legally required provisions of approp project agmts will be furnished as soon as Leg recommendations approved. If agreeable Dept proposes send soonest chief educ party of sufficient calibre to direct total educ project.

g. As senior US representative, Chief Dipl Mission will be responsible correlating admin all US technical assistance activities in country, including those of STEM, and for coordinating them toward achievement of US policy objectives. Further details concerning Leg’s continuing coordination responsibilities all US technical assistance and proposed assignment Tech Coop Officer being sent by air.

Acheson

1. Documentation on the Point IV Program is scheduled for publication in volume i.
2. For documentation on the United States information program in Southeast Asia, including operations of the United States Information Service, see pp. 1 ff.
3. For documentation on the Special Technical and Economic Missions dispatched to countries of Southeast Asia by the Economic Cooperation Administration, see pp. 1 ff.