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October 29, 1947
Honorsbln Ylllifta Aver*ll Harri |
Secretary of Commerce,
on, D. G.
Dear Averells
Tou i*ill recall our brief exchange vt the N.A.C. /nesting
tha other day concerning the form of organization vitkla the U.S.
Government for hftBdllng the £ir opean Recovery Progr^r. c-inee I
understand that your Committee It continuing to give consideration
to tldfl problem, I should like to give you some additional thoughts
on the subject.
I start frog two basic preEiisess (1) that this operation
is of such great magnitude snd complexity tiii-t a new Government
BfjMMgr Kill have to be set up to handle it, EJU (?) that this new
agency H l l have to be very closely tied in and coordinated with
the rest of the executive agencies. On this second ground it seems
to me impracticable to entrust the administration of the program to
M M independent body of experts along the lirjes suggested by Mr.
Aldrich.
I understand that there la general agreement on the foregoing principles in the Adsinistration ana in your Coeanittee but
thai views hr.ve not yet crystallized as to the mechanics of tying
in the operations of the nei? agency v.ith the rest of the Government.
It seems to me that this problem will be solved most effectively
•ad most expeditiousl^ if maximum use is ms.de of existing Governmental machinery.
Clearly, the State Department shouLa have ,:osc special
Miurart of control over the new agency in Tiew of its importance
to the foreign policy of the United StatOj this might be accorspli^hed by setting the new &genc$ u
• f.utonomousi organization
R
under the -ffingw of the Strte Dsu&rtisent (like the present Office
of the Foreign Liquidation Commissioner)• There remains the broader
question of providing general policy guia&nce to the new agency
within the framework of the over-all foreign lending activities of
United States. It seems to me that the existing H.A.C. machinery
coul-i be readily adapted to this purpose.
Barriaan
-
I t i s true that tiiere v i l l be a NMfNi of UportftBt
*tto«£ affecting the operations of the rtew agency ffhlcfe t.?o not
I witkic the functions or experience 0
!•&•€*, e.g., &Iioe
of commodities in short
. , aaaiiiistration of export control* etc, Bert your BepurtaeiXi m : bite Department of Agriculture
ha¥e »»11 rtnfiaeri responsibilities in these fl«l&8# sad 1 should
think ihfet you could, handle
3 through consul tat ion v^ith
the new agency without neces&itatijag the creatioa of atm topnmcb tii&t th« D
::acy it
..; •
-•
function
of
i s detail b&c import prograii-eaipieiit coiintriei
into ^oi^.iuera.iio*i tiie wraiimbllltj of comaodities in short
supply aai MMwrlai ttt»1f thfet the prograae a
/ropx-i^teiy d i rected tf#Mnri th« ob ; :ecti?e of I'llU|HiH fWNnwr;
At I I
iklfitj feaisever, 3a$a S&Jox policy queJtloQa
arise?, eountr/ b^ country, »ith respect to I
ation of the
fpn 8, ;na in ^articni^.
i reiipec^ to ih« provision of U. S,
^.3£istpiice. To rhat 8xtea^ i s m i l r t m w re(";-aired in Tiew of the
over-ail balance of
LtlOtt 0
counconeerried? Shoold the needed fias
;-ro\doed through
Eisd«7 th« Marshall pr«gr«a or through other tl. S. or
international iastitutiona? If fron sp^cirl
I
,
asstisi^g th&t the Congress 1<>TI
Ascretion un this point?
I t seems to me thet Oii
Ions such as these, tfca ne?^ agency shoulo.
gessrel polic t
-nee fro" UM S.JL.C. afl
•
experienced and best equipped ta handle
I
nk9 boweTer, th&t in t h ; r;e« circuaiotBacea
ca£e could be mad« for aeiifig the Secret&ry of Afriettlture to the
I.1»G. Clearly th^? fooa export prrfT— 1
llltj]WM|ill o f
E«ro?es.n AjgrlooltuTfl will be matjor eieia®iit© in ©W fdreign aid pro' e coming 3rears, Tte addition of HM Secretary of Agricralture to the S.i.C. would baroadca the b&se tf this bo«5^? &nd fortify
i t s capacity to nrica the bro£.a juagaieiits required for carr/itig out
Hill progr&aa of foreign
9 I slicmi-5 like to express Ey thoru^fe
vttli the idea, rhioh seems genera.ilj isceepte^, that represeiitittivee
of t':-' Cosgrest
j
is general public shoula be brought into
.•istration of th^ program in m adirisory, but BO
t i v e , cap&clty, I vould favor the creetio^ by the Congress of a
Honorable Willifttt Averell
an - 5 -
joint staudia,.. casuaittee to keep in touch riih tlw ovsi'-all foreign aid progr
I the s^pointmeirt. of ft iMliitlln representiBg
:>mbli" lBter©»t
Al^rich CoiMsittee) to
B the QovBrrm^m in UM 9*rrjim$ ont o
incerely
@FedFRASER