U/MSA files, lot 56 D 551, “1955 Congressional Presentation”
Memorandum by the Acting Special Assistant to the Secretary of State for Mutual Security Affairs (Nolting) to the Secretary of State1
- Subject:
- Problems concerning Mutual Security Legislation.
FOA has prepared a draft bill which consolidates all foreign assistance legislation. This draft raises three principal issues, one substantive and two organizational, which should be settled at this time.
1. Substantive issue: Should the Act for International Development be repealed and reenacted as a part of the consolidated bill?
The present FOA draft includes the AID in the consolidated bill. We have taken the position the AID should not be repealed and reenacted. Consultation with Congressional leaders discloses a preference to have the consolidated legislation provide all authority to give assistance, including the AID. In light of this Congressional sentiment, it is recommended that you concur in Mr. Stassen’s position that the AID should be included in the bill now being drafted but take the position that we should be prepared to change our position and delete the AID if it later appears that its inclusion will result in amendments adversely affecting the program.
2. Organizational issues:
[Page 732]a. Organizational arrangements in Washington.
We have taken the position that existing organizational arrangements, contained in Reorganization Plan No. 7 and related documents, should be continued. The FOA draft legislation provides for a Foreign Operations Administration and for the position of coordinator as a part of the basic statute. Reorganization Plan No. 7 would be repealed. Such legislative provisions would not achieve the balance between agencies under the present complex of documents of which Reorganization Plan 7 is a part. It is unnecessary in order to continue existing arrangements to spell those out in the new legislation. It is suggested that you take the position that to ask Congress to enact into law organizational arrangements would risk precipitating in this year’s presentation a major and unnecessary issue, and would also require the President to go back to Congress if he should wish to change such arrangements in the future. Therefore, we should continue existing arrangements under Reorganization Plan 7.
b. Organizational arrangements overseas.
The FOA draft bill would require that “special missions” of the European type be continued indefinitely wherever they now exist, regardless of the size of assistance programs, and that new such missions be created in additional countries if the Secretary of State agrees. The bill would also require that the chief FOA officers in all countries receive the pay and allowances of Class 3 or 4 chiefs of mission, regardless of the size of assistance programs. We understand, however, that Mr. Stassen is prepared to accord his views with yours on the subject of overseas missions. If the legislation is silent on Washington organization, it would follow logically that no provision would be included on overseas organization (except for any authority required to pay appropriate salaries to top FOA personnel overseas). It is recommended that you take the position that, in any event, no legislative provisions should be included which would prevent continuation of existing field arrangements (including Executive Order 104762) or prejudice more complete integration in overseas missions or the phasing out of existing “special missions” where assistance programs are being substantially reduced or liquidated. You will recall that you recommended to Mr. Stassen in September that separate aid missions should be liquidated in a number of European countries; the proposed legislation would require the continuation of such missions.
3. Level of aid to Israel.
Mr. Stassen may raise the question of the level of aid to Israel in FY 1955. Because of favorable developments in Israel’s economic outlook, there is reason to think that grants to Israel can be substantially reduced next year. It is suggested that you reserve the Department’s position on this subject pending consideration of staff work now underway.