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(Synopsis A, page 10)
under the most difficult circumstances." In addition, DGA expressed
concern at "the effect which would be created in other parts of the
world where our encouragement is a major element in the struggle
for freedom, if and concluded: "In our opinion it would be disastrous
for the foreign policy of the US for us to consider this action by
the House of Representatibes the last word on the matter."
On January 23rd the Korean Assembly drafted a message to HST, DGA,
and the Congress, asking the Congress to reconsider its decision and
pledging care in the expenditure of any funds that might be voted
for Korean assistance.
TRUMAN
In the meantime the House Foreign Affairs Committee was a.t work on
a compromise proposal that would append to the Korean Aid Bill
authority to extend to June 30 assistance to Nationalist China
Es
scheduled to end on February 15th. At an open hearing on January
30th, DGA said that in order to revive the Korean Aid Bill and undo
the damage that American relations in the Far East had suffered by
its defeat in the House, he would endorse the proposed amendment
for a further extension of aid to China since no new appropriations
would be involved. On the next day, the committee approved the new
bill, retitled the Far Eastern Economic Assistance Act of 1950,
by a vote of 17 to 1.
The House
On February 9th the House passed the new bill by a vote of 240 to
reverses itself 134. The Senate, which previously had approved the original Korean
Aid bill, unanimously approved the House legislation without debate
on February 10th. HST signed the bill on the 14th.
An aide-memoire
On April 3rd DGA sent an aide-memoire to the South Korean government
to the ROK
expressing the deep concern of the US over "the mounting inflation
in Korea. " The document recalled a statement made on March 4th by
Rhee to the chief of the ECA mission in Korea that there was "no
serious problem of inflation in Korea, but rather a threat of
deflation," and said that, in the view of the US, this indicated
"a lack of comprehension on the part of the Korean Government of the
seriousness of the problem and an unwillingness to take the drastic
measures required to curb the growing inflation. The aide-memoire
continued:
"It is the judgment of this Government that the financial situation
in Korea has already reached critical proportions, and that unless
this progressive inflation is (soon) curbed.. it cannot but seriously
impair Korea's ability to utilize effectively the economic assistance
provided by the ECA Unless the Korean Government is able to take
satisfactory and effective measures to counter these inflationary
forces, it will be necessary to reexamine, and perhaps to make ad-
justments in, the ECA's assistance program in Korea.
"Of equal concern to this Government are the reported intentions of
the Korean Government, as proposed by the President of the Republic
of Korea in a message to the National Assembly on March 31, to post-
pone the general elections from the coming May until sometime in
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"ocrText": "the\n(Synopsis A, page 10)\nunder the most difficult circumstances.\" In addition, DGA expressed\nconcern at \"the effect which would be created in other parts of the\nworld where our encouragement is a major element in the struggle\nfor freedom, if and concluded: \"In our opinion it would be disastrous\nfor the foreign policy of the US for us to consider this action by\nthe House of Representatibes the last word on the matter.\"\nOn January 23rd the Korean Assembly drafted a message to HST, DGA,\nand the Congress, asking the Congress to reconsider its decision and\npledging care in the expenditure of any funds that might be voted\nfor Korean assistance.\nTRUMAN\nIn the meantime the House Foreign Affairs Committee was a.t work on\na compromise proposal that would append to the Korean Aid Bill\nauthority to extend to June 30 assistance to Nationalist China\nEs\nscheduled to end on February 15th. At an open hearing on January\n30th, DGA said that in order to revive the Korean Aid Bill and undo\nthe damage that American relations in the Far East had suffered by\nits defeat in the House, he would endorse the proposed amendment\nfor a further extension of aid to China since no new appropriations\nwould be involved. On the next day, the committee approved the new\nbill, retitled the Far Eastern Economic Assistance Act of 1950,\nby a vote of 17 to 1.\nThe House\nOn February 9th the House passed the new bill by a vote of 240 to\nreverses itself 134. The Senate, which previously had approved the original Korean\nAid bill, unanimously approved the House legislation without debate\non February 10th. HST signed the bill on the 14th.\nAn aide-memoire\nOn April 3rd DGA sent an aide-memoire to the South Korean government\nto the ROK\nexpressing the deep concern of the US over \"the mounting inflation\nin Korea. \" The document recalled a statement made on March 4th by\nRhee to the chief of the ECA mission in Korea that there was \"no\nserious problem of inflation in Korea, but rather a threat of\ndeflation,\" and said that, in the view of the US, this indicated\n\"a lack of comprehension on the part of the Korean Government of the\nseriousness of the problem and an unwillingness to take the drastic\nmeasures required to curb the growing inflation. The aide-memoire\ncontinued:\n\"It is the judgment of this Government that the financial situation\nin Korea has already reached critical proportions, and that unless\nthis progressive inflation is (soon) curbed.. it cannot but seriously\nimpair Korea's ability to utilize effectively the economic assistance\nprovided by the ECA Unless the Korean Government is able to take\nsatisfactory and effective measures to counter these inflationary\nforces, it will be necessary to reexamine, and perhaps to make ad-\njustments in, the ECA's assistance program in Korea.\n\"Of equal concern to this Government are the reported intentions of\nthe Korean Government, as proposed by the President of the Republic\nof Korea in a message to the National Assembly on March 31, to post-\npone the general elections from the coming May until sometime in"
}