Memorandum of Conversation with Secretary of State Dean Acheson, Representative Christian Herter, and Ben Hill Brown, Jr.

c SERVICE* 'NATIONAL RECOROS num 305 DEPARTMENT OF STATE ARCHIVES AND Polo Memorandum of Conversation march 103 21 DATE: March 24, 1950 SUBJECT: Conversation between the Secretary and Representative Herter. 87 PARTICIPANTS: The Secretary Rep. Christian A. Herter (R. Mass.) conf H - Ben H. Brown, Jr. COPIES TO: s/s - G - Mr. Rusk S/P - Mr. Nitze H Mr. MeFall 1-1493 Representative Herter called on me on March 21, 1950. He stated that he wished to discuss several matters about which he was gravely con- cerned. For some time, he disclosed, he has realized that the United States is confronted with three major objectives, and that all three can- not possibly be reached. The first is balancing the Budget, the second foreign commitments, and the third domestic commitments. He feels that it is impossible to make and carry out necessary foreign commitments and make the social advances at home which are desirable and at the same time keep our dollar sound by balancing the budget. There must be a de=emphasis of at least one of the three. He cited as a particular example the National Science Foundation bill which came before the Rules Committee. He said that Representative Wadsworth was very much concerned about this bill since, although a very desirable project, it was another new expenditure. The Rules Committee was slow on acting on this measure and the President called Representative Wadsworth in. Representative Wadsworth expressed to the President his concern over the mumber of measures which had been proposed which would increase the Federal deficit, and said that although the bill was a worthy one, he did not con- sider it an essential expenditure at the present time. The President in reply stated that he was not worried about the deficit because he had asked the Bureau of the Budget to make a projection of expenditures and revenues over the next several years and this projection, as a result of the anticipated increase in national income and reduction in military budget and foreign spending showed by 1953 a surplus which could be used for debt retirement. DECLASSIFIED The E. O. 11652, Sec. 3(F) and 5(D) or (B) Dept. of St 12-4-19 -4-16 By NLT He NARS Data 6-4-26 SECHER