Memorandum of Conversation with Secretary of State Dean Acheson and Director of the Bureau of the Budget Frank Pace

300 etc. UCCL ASSIFIED a O. 11652, Sec. 3(B) and S(D) OF (E) DEPARTMENT OF STATE Dept. of State letter, 12-39-26 SECRE 78 He a NARS Date 6.4.26 Memorandum of Conversation DATE: March 9, 1950 SUBJECT: Dollar Gap Corf PARTICIPANTS: Secretary Acheson Director of the Budget, Mr. Pace and RECORDS BERVICE" COPIES TO: 1-1493 I talked this afternoon by appointment with the Director of the Budget regarding the status of our memorandum on the dollar gap. This had been sent by him to the President, who had asked Mr. Steel- man, Mr. Murphy and Mr. Elsey to consider the matter and had also asked for views from the Director of the Budget. Mr. Pace has had some talk with the President*s Staff Assistants and by agreement is putting in the Bureau of the Budget's views as a separate and insti- tutional matter. These then will be discussed at the White House. The Bureau approves our memorandum, It is making two points to the President. One relates to the Staff Assistant. The other relates to the timing of the appointment of the Public Committee. The issue about the Staff Assistant arises from the fact that Mr. Souers has taken himself out of consideration. The question, therefore, arises as to whether the President should appoint some other member of his White House staff or look outside, however phrased the Budget's recommendation will be to look outside. They belleve that the Staff Assistant will have to take positive leadership, devote considerable time to the project and probably also be Chairman of the Public Committee. With the burdens already upon the Presi- dent's staff, they do not believe that anyone can be spared for these important duties. Mr. Pace therefore believes that it is most important for us very promptly to make some suggestions to the President as to