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exercise joint control of the mutual security program
funds. Conflicts of policy would be settled by the
President, and a single arbitrator or a three-member
advisory board would be appointed by him.
Debate on the Senate bill began on August 29th. As it
became evident that there would be strong opposition to
any effort to restore the reductions made by the committees,
HST warned on the 30th that the action of the Congress
might defeat the European recovery program just as it was
on the verge of success. Moreover, he said, the rearmament
3.
of the North Atlantic Treaty nations was so closely tied
ARCHIVES AND
'NATIONAL SERVICE"
to the economic health of Europe that failure to provide
for sufficient economic assistance might endanger the
defense of the free world.
The Senate took final votes on the mutual security program
on August 3lst. It rejected (41 to 31) a Republican-
sponsored amendment to cut an additional $500 million
from the amount authorized for European economic aid.
It
also rejected (56 to 17) a Democratic attempt to eliminate
all reductions and bring the program back to the $8.5
billion originally asked by the Administration. The
Senate then approved (36 to 34) another Republican amend-
ment reducing economic assistance for Europe by an extra
$250 million. A proposal that the program be administered
by a single agency was defeated (50 to 18)
The final Senate version, providing for a total authoriza-
tion of $7.3 billion, was passed (61 to 5) and sent to
conference committee. The latter convened on September
19th and reported on the 27th. The compromise measure
that emerged provided for a total authorization of $7.483
billion, somewhat less than the House had provided and
almost $200 million more than the Senate had approved.
The major change was an increase of $141.5 million in the
amount allowed by the Senate for economic aid to Western
Europe. It was stated that this change was made in res-
ponse to a last-minute appeal by Eisenhower for reconsider-
ation of the economic assistance provisions in the light
of their bearing on rearmament.
The conferees also reconciled differences on means for
administering the new program. They provided for the
immediate abolition of the ECA, and its replacement by
the MSA, to be headed by a Director who would serve as
co-ordinator and supervisor of all foreign aid programs.
The new agency would take over the economic assistance
program and the general administration of the entire
project, while supervision of the military assistance
program was left to the Defense Department and the handling
of Point IV to the State Department.
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"ocrText": "(Page 5)\nexercise joint control of the mutual security program\nfunds. Conflicts of policy would be settled by the\nPresident, and a single arbitrator or a three-member\nadvisory board would be appointed by him.\nDebate on the Senate bill began on August 29th. As it\nbecame evident that there would be strong opposition to\nany effort to restore the reductions made by the committees,\nHST warned on the 30th that the action of the Congress\nmight defeat the European recovery program just as it was\non the verge of success. Moreover, he said, the rearmament\n3.\nof the North Atlantic Treaty nations was so closely tied\nARCHIVES AND\n'NATIONAL SERVICE\"\nto the economic health of Europe that failure to provide\nfor sufficient economic assistance might endanger the\ndefense of the free world.\nThe Senate took final votes on the mutual security program\non August 3lst. It rejected (41 to 31) a Republican-\nsponsored amendment to cut an additional $500 million\nfrom the amount authorized for European economic aid.\nIt\nalso rejected (56 to 17) a Democratic attempt to eliminate\nall reductions and bring the program back to the $8.5\nbillion originally asked by the Administration. The\nSenate then approved (36 to 34) another Republican amend-\nment reducing economic assistance for Europe by an extra\n$250 million. A proposal that the program be administered\nby a single agency was defeated (50 to 18)\nThe final Senate version, providing for a total authoriza-\ntion of $7.3 billion, was passed (61 to 5) and sent to\nconference committee. The latter convened on September\n19th and reported on the 27th. The compromise measure\nthat emerged provided for a total authorization of $7.483\nbillion, somewhat less than the House had provided and\nalmost $200 million more than the Senate had approved.\nThe major change was an increase of $141.5 million in the\namount allowed by the Senate for economic aid to Western\nEurope. It was stated that this change was made in res-\nponse to a last-minute appeal by Eisenhower for reconsider-\nation of the economic assistance provisions in the light\nof their bearing on rearmament.\nThe conferees also reconciled differences on means for\nadministering the new program. They provided for the\nimmediate abolition of the ECA, and its replacement by\nthe MSA, to be headed by a Director who would serve as\nco-ordinator and supervisor of all foreign aid programs.\nThe new agency would take over the economic assistance\nprogram and the general administration of the entire\nproject, while supervision of the military assistance\nprogram was left to the Defense Department and the handling\nof Point IV to the State Department."
}