Memorandum of Telephone Conversation with Secretary of State Dean Acheson and Director of the Bureau of the Budget Frederick J. Lawton

809 CONFIDENTIAL 88 April 3, 1951 s ARCHIVES RECORD$ SERVICE 'NATIONAL AND certification MEMORANDUM OF TELEPHONE CONVERSATION Participants: Mr. Lawton Mr. Acheson Mr. Lawton called the Secretary this morning to discuss with him the problem of ECA-State relationship and a paper which Mr. Webb has apparently shown to the Secretary. The Secretary said that he had been over the paper with Mr. Webb. It was all right so far as he was concerned. He thought he understood it and sawino objection to it. Mr. Lawton said Mr. Foster was quite upset about the paper. Mr. Foster feels it would be the end of ECA as an independent agency and that it might be better to move ECA formally to the State Department. Mr. Lawton said that Mr. Foster was worried about the Cabot-Isac Committee relationship and felt that in effect ECA was moved down to the country-desk level and would receive instructions from this group. planning Mr. Lawton said that he thought that there must be/on NATO and back-stopping for it and that there could be no proper coordination without "teeth in it". He said that this proposal simply puts the teeth into the coordinating function and by the funds going to the State Department a real coordination could be effected. Mr. Acheson said that he did not feel this proposal put ECA in anything like the position Mr. Foster felt it did. He mentioned that, while he would be responsible for allocating, after receiving the recommendations of Isac, there was still an appeal available by anyone who was dissatisfied to the President of the United States. Mr. Acheson said that he felt this should be stressed with Mr. Foster. DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (E) 5-7-26 CONFIDENTIAL Dept. of State letter, Augus,1973 Bx NLT HC NARS Date 6.24.76