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Synopsis J, The Adoption of a United Foreign Aid Program, May-October 1951

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(Page 1) SYNOPSIS J 5. THE ADOPTION OF A UNIFIED FOREIGN AID PROGRAM May - October 1951 U. 6018 HST requests On May 24 HST asked Congress to appropriate $8.5 billion $8.5 billion during the fiscal year 1952 for a mutual security program, including both military and economic foreign aid. Of the total, he suggested that $6.25 billion be allocated for military assistance and $2.25 for economic assistance, primarily to support expanded defense efforts abroad. HST pointed out that the mutual security program combined the various foreign aid programs of the US, including the arms aid of the mutual defense assistance program, economic aid for Europe, and the Point IV program. He said that in TRUMAN preparing the present recommendations, each of the formerly separate programs had been revised "in the light of the ACCURDS SERVICE emergency situation that exists in the world and the extra- the ordinary demands that are being placed on our nation. " HST ROVER proposed that the total funds contemplated under the mutual security program be divided as follows: Europe, $1.65 billion for economic aid and $5.24 billion for military aid; the Middle East and Northern Africa, $125 million for economic aid and $415 million for military aid; Asia, $375 million for economic aid and $555 million for military aid; Latin America, $22 million for economic aid and $40 million for military aid; and $78 million for the administrative expenses of the program. He pointed out that "for the security of the US, free Europe is a critical area that must be defended, !! and that, consequently, that area would receive the greatest proportiom of the funds. With regard to the administration of the program, HST said that the military aspects would be handled, as at present, by the Department of Defense, and economic portions by the ECA and by the TCA of the State Department. He pointed out that in order to ensure co-ordinated policy guidance, a key co-ordinating committed had been established, headed by the Director of International Security Affairs. House hearings The House Foreign Affairs Committee began hearings on June DGA testifies 26th, with DGA as the first witness. DGA declared that strength was "the precondition of peace" and that the interdependent factors of strength---military political, economic, and spiritual- had been brought together in the mutual security program. Ho pointed out that this was not essentially a new program and that it would be administered under existing legislation, brought together and amended to further the objectives of the nation's foreign policy.