LETTER TO HONORABLE ALLEN DULLES FROM NELSON A. ROCKEFELLER
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CIA-RDP80B01676R004300080024-3
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Document Page Count:
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Document Creation Date:
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Document Release Date:
July 19, 2005
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24
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Publication Date:
April 7, 1953
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LETTER
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EXECUTIVE OFFICE OF THE PRESIDENT
PRESIDENT'S ADVISORY COMMITTEE ON GOVERNMENT ORGANIZATION
WASHINGTON 25, D. C.
April 7, 1953
Honorable Allen Dulles
Director
Central Intelligence Agency
Washington,, D. Co
Attached is the final revision of the Com-
mittee's recommendations to the President concerning
foreign affairs organization.
These recommendations have been cleared
with the Secretaries of State and Defense, the Director
for Mutual Security, as well as certain other interested
departments and agencies.
This memorandum will be considered by the
President at the 3 P.M. meeting Thursday, April 9th.
I appreciate greatly your cooperation in
connection with various matters relating to this paper.
Sincerely,
,Nelson A. Rockefeller
Chairman
NSC review(s) completed.
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EXECUTIVE OFFICE OF THE PRESIDENT
PRES IDENT' S ADV ISORY COMMITTEE ON GOVERNMENT ORGANIZATION
Washington 25, D. C.
April 7. 1953
MEMORANDUM FOR PRESIDENrT EISENHOWER
(Memorandum No. 14)
SUBJECT: Foreign Affaairs Organization
INTRCQUCT ION
The security and welfare of the Nation have become increasingly
and critically dependent on the successful conduct of our foreign affairs
in all its aspects: political, military, economic, and psychological.
In the conduct of our foreign policies and programs, it is not enough
simply to react to developments as they occur; it is imperative that all
our material and intellectual resources and skills be harnessed to the
formulation and execution of positive and effective efforts designed to
achieve the National goals.
The organization of the Federal Government for this task can
be materially strengthened.
The Committee considers it of the highest importance that the
Secretary of State have sole responsibility (subject to the President)
for the formulation and control of foreign policy and that he be freed
from foreign program operations in order that he may concentrate on
his primary function.
The foreign policy primacy of the Secretary of State should
be maintained through clear Presidential mandate and through the Presi-
dent's consistent practice of employing the Secretary of State as the
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relationship should, of course. be sustained on specific issues by the
At the same time, within the framework of foreign policy, the
Secretary of Defense (subject to the President) should have clear pri-
macy in the formulation and direction of military policy.
The Committee considers that to achieve this clarity of responsi-
bility and to assure the proper coordination and execution of our foreign
operations, it is essential that there be a single agency in which all
foreign assistance and economic operations, to the greatest degree prac-
ticable, shall be centralized or coordinated, and that a similar consoli-
elation be effected in the administration of the foreign information pro-
grams. These agencies should exercise their functions subject to foreign
policy as determined by the Secretary of State, and military policy as
determined by the Secretary of Defense.
Accordingly, the following steps are recommended:
REC OINIU~NDAT IONS
Recommendation No. :1 -- Establish a new foreign operations agency,
in which shall be centralized or coordinated the most important
of the foreign assistance and economic operations of the United
States, the head of which should be app~iinted by and be adminis-
tratively responsib.iie to the President, and should report jointly
with the Secretary of State to the President where ma'~s~o~~o-r-
eign policy sixce concerned and jointly with the Secretary of Defense
where matters of military pole`-'concerned. He should be a
membex of the Natio~aal Security Council and the National Advisory
Council.
At the present time, foreign assistance and economic operations
are widely dispersed among numerous government agencies. The result is
waste, confusion of purpose, and often ineffective action. The proposals
contained in this memorandum are designed to improve this situation by
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most important of our foreign assistance and ecanomic operations.
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The Committee suggests that the new agency be known as the
,':International Cooperation Administration?'. the Director for Mutual
Security would prefer that it be named ,'Mutual Security Operations
Administration??,
Since the new agency would replace the Mutual Security Agency,
this recommendation of the Coromi.ttee would not result in an increase in
the number of Government agencies,
The new agency would:
a, Formulate and administer the Government*s foreign opera-
ting programs in the fa:elds of economic aide relief or assis-
tancefl technical assistance, and defense supporto it would give
continuous supervision and general direction to the formulation
and execution of military assistance programs; and it would ~ore-
sent the program budgets to the Bureau of the Budget. the Presi-
dent and the Congress,
b. Be responsible for the procurement ~f defense materials fn
foreign areas and for materials development activities in such
areas.
c. Under the co?rdinating authority of the National Advisory
Councid9administer the loan activities now vested in MSA,
d. Cooperate with the Department of Commerce in domestic
activities for promoting private overseas investment and for
stimulating fnternationa:L trade, hs provided in the MSA and
TCA legislation.
e, Exercise the authority now vested in MSA over counter-
part funds.
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f. Exercise the f"o reign claimancy function now vested
in MSA and the Office of International Trade. C For Department
of Commerce dissent on this recommendation, see 2d below.)
Recommendation No._2_- Transfer to the new agency Co r,
where appropriate, t.o the head of the new agency) the
following:
a. The powers and. functions now exercised by tl~e Mutual
Security Agency (except for_forei~n_information func-
tions, which a.re dealt with in Recommendation No. 4)
and the functions-vested in the Director for Mutual
Security by statute or Executive Order.
The responsibility for the programs of economic and technical
assistance, and for the continuous supervision and general direction of
assistance programs, including military assistance programs, now assigned
to the Director for Mutual Security under the Mutual Security Act and the
Mutual Defense Assistance Act, would be taken over by the new agency.
The head of the new agency would take over functions now
exercised by the Director for Mutual Security under statutory authority
or Executive Order. including responsibilities with respect to the
following:
C1) Continuous supervision and general direction of all foreign
military, economiic, and technical assistance pro~gxams.
(2) Preparation and 1-resentation to Congress of the foreign
military, economiic and technical assistance programs.
(3J Preparation of the reports to Congress covering operations
in furtherance oi' the purposes of the Mutual Security Act.
(4) The development and administration of programs of assis-
tance designed to sustain and increase military effort
in foreign countries.
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C5) The provision of equipment, materials, and services for
carrying out mutual defense support programs.
C6) The provision of economic assistance to nations for which
the United Staters has responsibility as a result of parti-
cipation in joint control arrangements.
C7) The guaranty of :investments in connection with approved
projects.
C8) The initiation of projects for the increased production
of materials in' ;short supply.
(9) The approval of tthe use of counterpart funds.
C10) The responsibilitties presently assigned to the Director
for 1[utual Security with respect to the Battle Act.
Study should be given to the question whether addi-
tional aspects of economic defense should be centered
in the new agency.
The transfer cif the programs and functions referred to above
could be accomplished by Reorganization Plan or by legislation.
The authority and responsibility for executing the Govern-
~'ment's program for relies' and resettlement of refugees coming inito
Israel and for operating the escapee program were assigned to the
Director for Mutual Security by Executive Order 10300 and have been
delegated by the Director for 1lutual Security to the Secretary of
State. These authorities and responsibilities should be revested
in the head of the new agency by administrative action.
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New authorizing legislation for the Mutual Security Program
must be obtained prior to June 30, 1953. In the new legislation. the
present position of the Director for Mutual Security in the Executive
Office of the President ;should be abolished.
b. The powers and functions established in the Act for
International Development and exercised by the Technical
Cooperation Administration, the statutory functions of
the Administrator for Technical Cooperation, and the statu-
tory functions vested in the Institute of Inter-American
Affairs by the Institute of Inter-American Affairs Act,
Authority is provided under the Act for International Devel-
opment for bilateral technical cooperation programs relating to economic
development. and for pari~icipation in, or contribution to, multilateral
technical cooperation programs of this nature carried on by the United
Nations, the Organization of American States, their related organiza-
tions, and other internal;ional organizations. Responsibility for these
programs was assigned by the President to the Secretary of State. who
established the Technical) Cooperation Administration as the agency for
planning. executing and evaluating the programs authorized under the
Act. Most of the projects undertaken by the TCA have been farmed out
3
~ to other Government agencies for implementation. The new agency should
immediately take steps toy establish effective control over these programs.
The statutory functions now vested in the Administrator for
Technical Cooperation sha~uld be transferred to the i~esr~ag~n~iy~ : .
The Institute for Inter-American Affairs is a Government
corporation authorized to~ engage in technical programs and projects in
the other American Republics, especially in the fields of public health,
sanitation, agriculture and education. The Institute is the operating
agency of the TCA in Latin America, for programs in these fields.
The law creating the Institute provides that its Board of
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Directors shall be appointed by the Secretary of State. The Committee
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recommends that provision be made for transferring from the Secretary
of State to the head of the new agency the authority to appoint the
Institute's Board of Directors. Pending such change, the Secretary
of State would have authority under the present law to appoint to the
Board individuals recommended to him by the head of the new agency.
The transfers included in this recommendation (except for the
change in the authority to appoint the Board of Directors of the Insti-
tute of Inter-American Affairs. and the transfer of the statutory func-
tions of the AdministY:ator of the TCA to the head of the new agency,
which must be done by legislation or by Reorganization Plan) can be
accomplished by Execut.ave Order.
c. Appropriate responsibilities and functions, as stated
below, with respect to thE: U.S. participation in eco-
nomic aid, technical assistance and relief programs of
international organizations.
Ta the extent not covered by Recommendation 2b. above. the
Secretary of State should assign to the new agency the responsibility
for the development oi' the U.S. position on the place, within the total
U.S. assistance program, of multilateral economic aid and technical
assistance programs carded out through international organizations;
for justification of esuch multilateral programs before the Bureau of
the Budget and Congress; for reviewing such multilateral programs and
advising the Department of State thereon; for overseas coordination
between the operations of the U.S. bilateral assistance programs and
the operations of multtilateral assistance programs; and for the alloca-
tion of funds to the lepartment of State for U.S. contributions to such
programs, including tl'ne Technical Assistance Programs of the U.S. and
of the Organization o:F American States (OAS); the United Nations Inter-
national Childrens Em~2rgency Fund (UNICEF), the United Nations Relief
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aria Wor s Agency V the Unite a ions ocean a ~e genc CUNIQIA),
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and the Intergovernmental Committee for European Migrants CICEM).
. The Department; of State would continue to be responsible
for U. S. policy on the role of economic aid and technical assistance
activities in the programs of the International organizations; for the
presentation. with the assistance of the new agency, of U. S. positions
on these assistance programs of international organizations; for repre-
sentation of the U. S. in the international organizations; for main-
tenance of relations with headquarters staffs of the international organ-
izations. with the participation of the new agency in these assistance
?~ matters; and for the control of U. S. contributions to international
"organizations for these assistance programs.
Authority and responsibility for U. S. participation in the
UNRWA for Palestine Refugees are now vested in the Secretary of State
pursuant to the United Nations Palestine Refugee Aid Act of 1950. The
transfer of responsibility for this program to the new agency could be
accomplished by legislation or by Reorganization Plan. Authority and
responsibility for U. S. participation in the UNICEF and in the ICEM
have been delegated to the Secretary of State under Executive Order
10300. Appropriate responsibilities in respect of such programs could
be shifted to the new agency by an amendment of that Order.
d. The foreign claimancy functions presently exercised
by the Office of International Trade, for United
States exports subject to control.
At the present time this function is exercised by the Mutual
Security Agency. :for the MSA countries, and by the Office of Interna-
tional Trade in the Department of Commerce for all other countries. The
transfer of this :function as exercised by MSA is covered by Recommendation
No. 2a above.
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This transfer can be effected by administrative action or
by Executive Urder.
The Department: of Commerce does not concur in this recom-
mendation and recommends that the foreign claimancy function be con-
centrated in OIT alone.
e. The functions of the Defense Materials Procurement
Agency relating to the development and the procurement
of defense materials in foreign areas.
The assurance of adequate materials to supply U. S. indus-
trial capacity is of major long-term significance to our national
security and the dynamic growth of our economy. Placing responsibility
in the new agency both for the development and the procurement abroad
of materials fn short supply will make possible a more active effort
in this field and will enable the new agency to promote foreign develop-
ment along lines that will give the United States a full return for the
assistance rendered.
The responsibility for the overseas procurement of defense
materials, and for stimulating increased production of such materials.
has been exercised in the past, in large part, by the Defense Materials
Procurement Agency.
The programming of defense materials procurement will be
carried out in the Office of Defense Mobilization. In line with the
present recommendation, the General Services Administration would handle
domestic procurement of defense materials and in certain situations might
act as the contracting agency for the new agency for materials produced
abroad. The Office of Defense Mobilization should organize a committee
representing the various interested departments and agencies, including
the new economic agency, General Services Administration, the Department
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of Commerce9 etc., to de~relop programs that will fulfill adequately our
national needs.
This recommendation can be carried out by Reorganization
Plan or by legislation.
f. The authority to correlate private programs with
Governmental programs in the field of foreign relief;.
to maintain a registry of organizations in this field;
and the authority to pay ocean freight charges on ship-
ments of relief supplies9 now exercised by the Depart-
ment of State.
The Advisory Committee on Voluntary Foreign Aid was created
and authorized to perform the first two functions by letter of the
President of May 14, 19469 and has been carrying on its activities in
the Department of State. Payment of ocean freight charges was author-
ized in?Section 535 of tt~e Mutual Security Act of 1951. Authority over
this program was delegated to the Department of State by Executive
Order 10300 as amended by Executive Order 10368.
This transfer would require a new Presidential letter and
Executive Order.
Recommendation No. ~R - Appropriations for foreign afd9
including military assistance. and for materials prn-
curement abroad9 should be made directly to the Presi-
dent who should then delegate responsibility to the head
of the new agency for the allocation of the funds in
accordance with pro~~rams formulated as provided in this
memorandum.
Since the head of the new agency would be responsible for
the coordination of all foreign economic programs and-for the continuous
supervision and general dlirection of programs formulated as provided in
this memorandum which area carried out by other departments and agencies of
the Government fas in they case of the military assistance program)9 he
should have control aver the allocation of the funds9 such allocation to
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be made in accordance with such programs, Appropriating such funds to
the President, in the first instance, would provide maximum flexibility
Recommendation No. ~l - Hereafter the term '"Voice of America"
should be app led only to statements of the official-United
States? positions,`3:ncluding those on current developments,
for use abroad.
The State Department should have responsibility for develop-
ment of this program. Th.e material should be given to a new foreign
information agency Cto be~ established as set forth in Recommendation
No. 5) for dissemination abroad as directed by the Department of State.
No other material regardless of its nature, origin. or
medium used for its dissemination, should be identified as the "Voice
of America".
Recommendation No. 5 - Establish a new foreign information
agency, in which would be consolidated the most important
foreign information programs and cultural and educational
exchange programs now carried on by the United States Inter-
national Information Administration, by the Technical Cooper-
ation Administration, by the Mutual Security Agency. and by
the Department of State in connection with the Government of
Occupied Areas.
Under this proposal, the ma,~or activities for interpreting
abroad United States policies and practices (with the exception of
formulating materials far the official "Vocie of America" program
which shall be handled as outlined in Recommendation No. 4) together
with foreign cultural and educational exchange programs, would be
placed under a new foreign information agency. This transfer would not
apply to foreign information and educational exchange services which
are an integral part of technical assistance programs. The new agency
would be established under,the National Security Council under arrange-
ments. paralleling those set forth in the National Security Act for the
Central Intelligence Agent;y.
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The above would require legislation or action through
Reorganization Plan.
The head of the new agency would be appointed by the Presi-
dent, by and with the advice and consent of the Senate. He would"have
full administrative autha~rity for the operations of the agency, includ-
ing development of programs, budget, administrative procedures, and the
hiring and dismissal of personnel, but subject to foreign policy as
determiFnedd?~,~x ~~e Secretary of .State and to such other instructions as
j may be furnished by -the national Security Council. With respect to
the official "do ice of America" program. the new agency should accept
responsibility for dissemination abroad, including necessary services
of translation, technical. preparation, transmission. and distribution,
~'-for which services the ne:w agency should provide within its budget,
Since the successful functioning of this agency will depend
upon the s[cill and wisdom of its operations no less than upon its
adherence to U. S. foreign policy, it is important that its Director
receive expert counsel upon operating procedures. Public Gaw 4U2,
the United States Information and Educational Exchange Act of 1948,
created the United States Advisory Commission on Information and the
United States Advisory Commission on Educational Exchange to formu-
late and recommend to the Secretary of State policies and programs
for carrying out this Act, and to report to Congress upon the effec-
tiveness of these efforts. Onder the proposed reorganization, these
two Commissions logically would counsel the head of the new informa-
tion agency instead of the Secretary of State. Legislation or action
under the Reorganization Plan would be necessary to effect this change.
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These Commissions should play an even more active role than
in the past, since the collective wisdom and practical experience of
their members would be invaluable to the new information agency.
There is a second commission in the field of international
educational exchange -- the President's Board of Foreign Scholarships,
establish under Public Law 584. Congress and the Executive Branch
might wish to give consideration to the merger of this Board with the
United States Advisory Commission on Educational Exchange, since both
groups operate in the same field.
The head of the new agency would attend meetings of the
Psychological Strategy Board when appropriate, and would be authorized
to provide staff services for the PSB upon foreign information matters.
...........
The authority and responsibility now vested in the Secretary
of State pursuant to appropriate National Security Council papers and
Executive Qrders for interdepartmental coordination of foreign informa-
~_ __~
tion activities should also be transferred to the new agency.
The responsibilities now exercised by the Secretary of State
with respect to informational media guaranties should be transferred to
the head of the new information agency by an amendment of Executive
Order 10300.
recommendation No. 6 - Organize the structure of the foreign
economic operations agency and of the foreign information
agency so that their operations will be responsive to foreign
policy determination by the Secretary of State and to military
policy determination by the Secretary of Defense.
a. At the Washington level, the line organizations of the two
operating agencies should be organized as far as possible on a
common pattern with those of the Department of State, with the
sub-divisions of each dealing with parallel areas of the others.
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b. Regional staf:Fs should be established only in cases where
operations agency and they foreign information agency, to assure that, in
there is a regional organization or multilateral activity of suf-
ficient importance tto warrant the establishment of a diplomatic
be organized in such a manner as to provide for effective forer~gri
policy direction and coordination of their operations by the IInited
States fission Chief (The Ambassador or 11(inister). The field staff
. At the countr~r level the field staffs of the agencies should
of the economic agency would perform-the major economic staff
assignment in the development of country programs and in estimating
ecanomic capabilities and requirements.
The Secretary of State, and the Secretary of Defense, as appro-
priate, should have authority and responsibility to review plans and poli-
cies relative to military and economic assistance programs and foreign
information programs, and. legislative proposals of the foreign economic
their conception and execution,
consistent with and further
policy objectives.
The heads of the
such plans, policies and proposals are
attainment of foreign policy and military
agencies should furnish information to
~ the Secretaries of State and Defense
in such manner and form as may be
agreed between the head of the agency and the Secretary concerned to
insure that the programs of the agencies and the implementation of such
programs conform with foreign policy and military policy objectives..
To assure to the new economic agency its proper role with
respect to the coordination and direction of the military assistance
programs. the Secretary of Defense would be required to keep the agency
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currently informed on the status of such programs; including military
end item :procurement and deliveries, both domestic and offshore.
recommendation ,~,yo .,~,;7 - Executive Order 1033$, relating to
overseas personnel relationships, should be extended to ::
cover the representatives of the new economic and informa-
tion agencies. and when amended should be supplemented as
stated below.
Executive Order 10338 defines the authority of the Chief of
Diplomatic Mission Ambassador or Minister) to coordinate the activities
of United States personnel in his area who are engaged in carrying out
programs under th.e Mutual Security Act and provides that he shall exercise
general direction and leadership of the entire effort. This Order should
be amended to cover the representatives of the new economic and informa-
tion agencies, and when amended should be supplemented as follows:
a. The Chief of t;he Diplomatic Mission would have the
authority, through appropriate official channels, to effect
the withdrawal of U. S. personnel in his area;
b. The Chief of the Diplomatic Mission shall be kept-fully
and currently informed, as he desires, by all U. S. representa-
tives, including the: representatives of the new economic and
information agencies; and the chiefs of military assistance
advisory groups, on all matters, including prospective plans,
recommendations, negotiations, and actionsp relating to the
programs of such agencies; and
of the foreign economic and information agencies.
The Committee strongly recommends that at the country level,
where mutually agreed among the agencies concerned, there be an inte-
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gration of personnel performing related functions under a single top
c. The Secretary of State should have ~tt~e rght_to,veto
the proposed appointments of the chief representatives abroad
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official, as is now the ease where the Chief of the MSA Mission also
performs the duties of the Counsellor of Embassy for Economic Affairs,
or where the Public Affairs Officer directs the foreign information
activities of the MSA and the U. S. International Information Admin-
istration.
Recommendation No. 8 - The Secretary of State should retain
his position on the NAC to assure that the foreign loan poli-
cies of the U. S. are consistent with and further the attain-
ment of U. S. foreign policy objectives.
The foreign policy responsibility of the Secretary of State
in matters involving loans and credits is of equal importance to his
responsibility in matters involving grants. They represent alternative
farms of financial assistance designed to implement foreign policy.
~**~~sv~~~*~**e~~~r~
REORGANIZ,~ION PLAN QR LEGISLATION?
Many of the above recommendations, it will be noted, can
be carried out either by Reorganization Plan or by legislation. -The
decision as to which course shall be followed, if the recommendations
are approved, is one of +~onsiderable political importance. The advan-
tages and disadvantages of each course may be summarized as follows:
The Reorganization Fian approach would have the following
advantages:
1. It would enab:Le the President clearly and specifically
to set forth the organizational arrangements which he desires
for the administration of foreign affairs and programs.
2. The Reorganization Plans would become effective unless
rejected by a Constitutional majority of either House. 6Vhile
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the Plans could be rejected in their entirety, they could not
be amended as in the case of legislation.
3. Responsibility of the Administration for the reorgani-
zations would be clearly fixed..
4. The Reorganization Plan procedure ('if the plans are
submitted promptly) might be a quicker method of putting
the recommendations into effect, since it would undoubtedly
take mare than b0 days to obtain legislation.
The principal advantages of proceeding by legislation are
as follows:
1. Legislation must be requested. in any event, for certain
basic authorities under the fbutual Security Act which expire on
June 3U, 1953, and must be renewed.
2. This has been the traditional method of determining
organizational structure in the field of foreign affairs and
might be preferred by the Foreign Affairs and Armed Services
Committees. In the last two years the committees which handle
these programs have shown a concern about organization at least
equal to their concern about the magnitude of the programs and
are therefore likely to desire to can5der all aspects of these
programs at one time.
3. It has been suggested that a more sympathetic consideration
of Administration proposals concerning organization for foreign
affairs would be given by the legislative committees than by
the Government Operations Committees.
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If the legislative leaders concur, the Committee believes
that it would be preferable for the President to effectuate the con-
templated reorganization by Reorganization-Plan.
Before reaching a decision on this matter the President
may. wish to consult with the Secretaries of Defense and .State, the
Director for Mutual Security, the Director of the Bureau of the
Budget and probably others among his advisors; and. after obt8ining
their views, with legisls~tive leaders.
In the course of the Committee's study, the Departments of
Agriculture and Commerce have raised certain issues which the Committee
has not had time to expla~re thoroughly. These should be dealt with
later.
Approved For Release 2006/03/17: CIA-RDP80B01676R004300080024-3