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BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

Office Correspondence
To

nhanrtnATi Eftftiftw

FrntTi

Date
Subject:

S t a t u s of Marshall

y\rt

This is merely to advise you of the current status of
the draft legislation for the Marshall plan, as indicated in the
draft of November 10, which we received yesterday.
The draft establishes a separate Economic Cooperation Administration, headed by an Economic Cooperation Administrator* He
would be appointed by the President and approved by the Senate, and
receive a #17*500 salary*
The administration of the Act would be vested in him except
as otherwise provided in the Act. All functions of the Administration
which involve the foreign, policy of the United States would be performed
under the direction and control of the Secretary of State*
There would be a special United States Representative for
the plan in Europe* He would be appointed by the President with the
approval of the Senate, and would have full ambassadorial rank*
The Administrator is to consult the National Advisory
Council in connection with advances of funds to participating countries,
whether by grant, loan or otherwise. The provision is not a model of
clarity, but is much better than earlier drafts and is probably as good
as can be obtained in the circumstances*
As a means of carrying out the Act, the Administrator could
make "guaranties to, or financial arrangements with11 American citizens,
or corporations substantially owned by Americans*
There is no provision for stabilization loans, and none
for any advisory committee of civilians or congressmen*




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