Foreign Relations of the United States, 1952–1954, General: Economic and Political Matters, Volume I, Part 1

MSA–FOA Director’s files, FRC 56 A 632, box 8, “State Department 1953”

The Secretary of State to the Director of Foreign Operations (Stassen)

Washington, September 28, 1953.

Dear Harold: I have examined with interest the proposed organization chart of FOA which you forwarded to me on August 25.¹ I understand that members of our respective staffs have meanwhile discussed the proposed organization of your Administration and related matters. I think the organization you have proposed on the chart adheres to the principles of the President’s reorganization message and the Rockefeller Committee Report,² and should facilitate close and effective working relationships at all levels between our agencies and contribute to carrying out successfully this Government’s foreign policy.

With regard to your proposal to change the names of all MSA and TCA missions to U.S. Operations Missions, I fully agree that your field staffs should have such an official title in all countries where they are established as separate missions. I do feel, however, that in the case of the FOA/TCA field staffs the current arrangements should continue. As you know, these staffs are constituted as a part of the Diplomatic Mission, comparable to the Diplomatic Mission-MAAG arrangement. While I believe that the FOA/TCA staffs might well have a distinctive title within the mission, these staffs should continue to be a part of the Diplomatic Mission and should not be established as separate U.S. Operations Missions under the authority of Section 109(a) of the Economic Cooperation Act of 1948, as amended.

Though a part of the Diplomatic Mission, the FOA/TCA staff would, of course, continue, as at present, to report to and communicate directly with you, and in their relationships with the Chiefs of Diplomatic Missions would be subject to E.O. 10476.³ The present arrangement is one which the host countries are accustomed to and the establishment of separate and additional missions may have undesirable effects on our relationships with those countries. Furthermore, by adhering to the existing relationship we will benefit from the several years of experience that has been accumulated in the field, including the continuation of the important contribution of the economic staffs of the Diplomatic Mission to the FOA/TCA programs.

In view of our joint concern about the need to reduce U.S. staffs overseas to the absolute minimum, we must develop arrangements which will permit manpower talents overseas to serve both the Department of State and FOA. In those countries where we are providing special economic aid as well as technical assistance, I suggest that these arrangements be predicated on the integration of our economic staffs under the common leadership of an individual who would serve as principal Economic Officer of Embassy and as Chief or Deputy Chief of your mission. Under this arrangement you would be able to utilize the economic staffs which the State Department now provides each Diplomatic Mission to work on economic analysis and reporting, trade and investment opportunities and other related economic activities. These staffs presently service all government agencies concerned with foreign economic affairs. In countries receiving only technical assistance, the economic section of the Diplomatic Mission should provide such aid on economic matters as your staff may require and which is a normal part of the Diplomatic Mission’s duties.

You will recall that last June, we agreed in principle that separate aid missions should be closed out in countries where we are no longer furnishing economic, technical or defense support assistance. It is now clear that in FY 1954, such aid is not contemplated for Belgium, Denmark, the Netherlands and Portugal. I feel that we should now proceed with the liquidation of those missions. Undoubtedly there will be certain residual functions which must be continued during this and perhaps the next fiscal year. These can be carried on by adding to the Embassies certain of the personnel now with the separate FOA missions. I believe in most cases fewer personnel will be required than are contemplated for the separate FOA missions, though it would be necessary to finance such additional personnel as are needed from FOA funds. You would, of course, continue to direct FOA activities in these countries. I am sure we can work out arrangements which will enable you to do so while liquidating the separate missions whose major functions have come to an end.

Sincerely yours,

Foster

1. See the letter from Stassen to Secretary Dulles, Aug. 25, 1953, p. 642.
2. Reference is to the Report of the President’s Advisory Committee on Government Organization. See the memorandum for the President, Apr. 7, 1953, p. 615.
3. For the text of Executive Order 10476 relating to the administration of foreign aid and foreign information functions, dated Aug. 1, 1953, see 18 Federal Register 4537 or U.S. House of Representatives, Mutual Security Legislation and Related Documents, December 1953, 83d Cong., 1st sess., pp. 179–186.