PREPARATION AND USE OF FINANCIAL APPENDICES IN CONNECTION WITH POLICY RECOMMENDATIONS BY THE NATIONAL SECURITY COUNCIL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00268R000100010004-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 18
• Document Creation Date: December 27, 2016
• Document Release Date: March 14, 2013
• Sequence Number: 4
• Publication Date: June 10, 1959
• Content Type: MEMO

r5" -11711/2
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EXECUTIVE OFFICE OF THE PRESIDENT
NATIONAL SECURITY COUNCIL
WASHINGTON
June 10, 1959
MEMORANDUM FOR THE NSC PLANNING BOARD
SUBJECT: Preparation and Use of Financial Appendices
in Connection with Policy Recommendations by
the National Security Council
REFERENCES: Memo for NSC Planning Board, March 3, 1959''
and references therein.
After several postponements of Planning Board con-
sideration of the subject, the Board Assistants were
requested to obtain the concurrence or non-concurrence
of Planning Board Members to the enclosure to the reference
memorandum of March 3.
All Planning Board representatives principally,con-
cerned have now concurred in the enclosure to the March 3
memorandum, with the exception of the Treasury Member, who
has proposed the following changes:
Page 1, paragraph 3a. Delete the second sentence and
substitute the following: "It is not necessary to project
costs with precision -- a broad order of magnitude estimate
is sufficient."
Page 3, paragraph c. An additional sentence should
be added at the end of paragraph c: "Alternative cost
implications should be prepared when the draft policy
statement forwarded by the Board Assistants contains
alternative recommendations on paragraphs of policy guid-
ance involving substantial expenditures."
Page 4? paragraph 8c. After the words "Planning
Board" in line 3 of this subparagraph, there should be
inserted the following parenthetical phrase: "(other
than the Development Loan Fund and the Export-Import Bank)"
Page 7 Table II. Footnote c of Table I should be
repeated in Table II, being keyed to the Development
Loan Fund and the Export-Import Bank.
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OFFICI ONLY
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OFFICIAL USE ONLY
Accordingly the Treasury proposals are transmitted
herewith for consideration by the Planning Board. The
subject may be scheduled on the Planning Board agenda for
Tuesday, June 16, 1959.
MARION W. BOGGS
Director, Policy
Coordinating Secretariat
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STAT
?? ?
. .
aff-
it/IA-1'
s-
n.
10 March 1959
MEMORANDUM FOR: Deputy Director (Intelligence)
SUBJECT:
Preparation and Use of Financial Appendices in
Connection with Policy Recommendations by the
National Security Council
LExccutivn 1:
The draft memorandum dated 3,March 1959 has been reviewed.
We do not have any comments on the draft in view of the second
\exception of paragraph 1 of the memorandum. It is assumed that
CIA operational activities will be excepted from the requirement
as "programs of particularly sensitive nature." If there is any
question of this interpretation of paragraph 1, we would like to
have the further opportunity to comment on the proposal.
H. Gates Lloyd '
Acting Deputy Director
(Support)
DDS
0111111W-7
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25X1
9 March 1959
MEMORANDUM FOR: Deputy Director (Intelligence)
ATTENTION: Assistant to DD/I (NBC)
SUBJECT: Preparation and Use of Financial Appendices in
Connection with Policy Recommendations by the
ESC
It is our understanding that this Agency would not have
to prepare financial appendices on any policy paper inasmuch as
our programs would fall within the exception for which special
arrangements have been made.
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\,
ILLEGIB
P(Y45
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EXECUTIVE OFFICE OF THE PRESIDENT
NATIONAL SECURITY COUNCIL
WASHINGTON
March 31 1959
MEMORANDUM FOR THE NSC PLANNING BOARD
a19
SUBJECT: Preparation and Use of Financial Appendices
in Connection with Policy Recommendations by
the National Security Council
REFERENCES: A. Record of Meeting of the Planning Board,
October 2, 1958, Item 2
B. Memo for NSC, same subject, dated May 11,
1954.
The enclosed draft report, prepared by an ad hoc
committee of the NSC Planning Board pursuant to agreement
at the October 2, 1958 Planning Board meeting, is trans-
mitted herewith for consideration at an early meeting of
the Planning Board.
MARION W. BOGGS
Director, Policy ?
Coordinating Secretariat
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EXECUTIVE OFFICE OF THE PRESIDENT
NATIONAL SECURITY COUNCIL
WASHINGTON
March 3, 1959
MEMORANDUM FOR THE NSC PLANNING BOARD
SUBJECT: Preparation and Use of Financial Appendices
in Connection with Policy Recommendations by
the National. Security Council
REFERENCES: A. Record of Meeting of the Planning Board,
October 2; 1958, Item 2
B. Memo for NSC, same subject, dated May 11,
1954.
The enclosed draft ? report, prepared by an ad hoc
committee of the NSC Planning Board pursuant to agreement
at the October 2, 1958 planning Board meeting, is trans-
mitted herewith for consideration at an early meeting of
the Planning Board.
MARION W, BOGGS
Director, Policy
Coordinating Secretariat
ILLEGIBC
pq
?c,14,5-rcv),(.41
IL
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DRAFT
PREPARATION AND USE OF FINANCIAL APPENDICES IN CONNECTION
WITH POlaCY RECOTM NDATIO B TM
NATIONAL SECURITY COUNCIL -
Introduction
1. The President has directed that recommendations by
the National Security Council include information as to the
costs of the programs necessary to carry out such policy.
Accordingly, each policy statement presented by the Council,
with certain exceptions, will contain a Financial Appendix
prepared to conform with this instruction. The exceptions
to this instruction include (1) policy proposals having no or
only minor cost implications; (2) policy proposals relating
to programs of a particularly sensitive nature for which
special arrangements have been made.
2. The Financial Appendix should reflect the cost im-
plications of carrying out the new policy which-'e'Eritement
proposes. Any significant change in an existing program
shown in the Financial Appendix must be based upon the policy
proposal and fully explained in the Financial Appendix. The
Financial Appendix should not in itself presume to dispose of
policy issues.
Information to be Included in a Financial Appendix
3. The Financial Appendix should preoent:
a. Cost estimates to carry out the policy based
on the best available information at the tAme of
preparation, i.e., estimated expenditures durIng the first
feur years er the ife ef eaeh program; weever is
apprepriate Per a eignifieant estimate: the cost
implications of the proposed new policy122 programs
and 1.52. expendMres, including identification of specific
aid commitments and costs related thera-5. In some
cases,73T7Will not be possibleEo estimate costs with
precision. In many cases, estimates of cost may
necessarily be very rough, and where appropriate may be
expressed as a range. In arriving at cost estimates
for the oposed new polTcy, emphasIF should be directed
primarily at determininghe amount ofU. S. resources
needed to carry outthe RigIcy, f-Op9reneaTh some
jud4ment to the avai4abilitTET ft?T0s.
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h. Other pertinent
on 11,29, magnitude of the
tures, existiag eapital
tions, etc.
financial data, if any, bearing
program, such as prior expendi-
investment, available appropria-
It A statement ef the degpee te whiek the eest
estimates iR a abeve ape seasisteat with eapPent pre-
gPammiag madep apppeved pelieiest
ly A statement of the deePee te whiek any addi-
tional eests estimated in e abeve ea a be 44Seet. by the
Peduettea OP elimination er any ether euPPeat ppegpams
wikeut advepsely &Meting apppeved pelieies:
fty IL Any assumrdolts necessary to explain the basis
upon which the foregoing estimates and statements are
made.
4. Every Financial Appendix submitted to the Council
will bear the following standard caption:
????
Cost estimates in the Financial Appendix
indicate order of magnitude allx.
Approval of the policy statement does not
indicate approval of cost estimates in the Finan-
cial Appendix gna is not to be inktmelti as
Council endorsement 217or limitgtion upon, the
size of.takticular programs.
Appropriations and expenditures to finance
the policy will be subject to determination in the
regular budgetary process.
5. In general, all Financial Appendices will follow
the form of the attached Financial Appendix. In any case
where the attached form of Financial Appendix is not suited
to the substance of a policy statement, the NSC Staff will
be responsible for outlining a form appropriate to the
occasion.
Procedures for Preparation of Financial Auendices
6. Departments and A encies
a. When a proposed policy covers programs which
are the operational responsibility of one agency or a
coordinating committee (such as IIC or ICIS), the ini-
tial draft of a policy statement prepared by such agency
or committee for circulation to the Planning Board will
be accompanied by a Financial Appendix.
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/ ?
the easesT the initial draft ef a peliey
statement prepared by the drafting ageney fer eireulatien
te the Planning Beard will net be aeeempamied by a
PlnanelaI Appendix.
e. Immediately felIewing the eireulatien te the
Planning Beard ef the Initial draft ef a peliey state-
ment In aeeerdaRee with parr 6-b7 eaeh Interested de-
partment er ageney will eest that seetlen eP the state,.
ment affeeting its aetivesT IR aseerdanee with the
above instruetiens and the attaehed Perm ef Finanelal
Appendixy and will transmit the same te the N86 Staff.
b. In other cases, i. .2.2.1. where more than one a enc
is ill-volved, the initial draft 17-7-policy statement pre-,
pared for circulation to the Planning Board will be'
accompanied la2 Part A of TET FinanciafTSPNE571:mepared
hy. the NSC'StafT-FirsuTW-t-6 c below.
MINN
d. Part A - Cost Implications of Existing Policies
Prior to the circulation to the Planning Board of the
initrirffraff-Ur a polic7.staT-EmM. in accordance with
par..b -b, each interested department or a enc
prepare final-7M information relatinst its activities
based upon existing policy, in accordance WITh the above
TETEFUEETEns ana Par A of the" attached
Appendix, andTll rasTte same to the'NO Staff.
The Department of Defense will prepare the necessary
1-Frormation relating to assistance. The Depart-
ment Of State and ICA-7111 prepare ecessary iTrrnation
on ecrioniTarograms and the educational exchange
programs', consultiq3: as necessary With other
interested departments and aaencies, 11777Will
prepare necessary infOrmation on the information
program.
After the Planning Board Assistants have considered the
initiaT-Uraft of a policy statement, the reaponsibIe depart-
ments aria--Eggn-aes will prepare finan-ail information
based upon the prop= new policy, in accordance with the
1-b-Fre- r--frisructions andPI.EFE B of the attached forni=
Financial Appendix, and will transmit the same to the
NSC start for consoll-Etioll.
7. NSC Staff
a. The NSC Staff will consolidate the financial
data redeived under par. 6-c from each interested
department and agency and will circulate the consolidated
Financial Appendix to the Planning Board.
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b. The NSC Staff will be responsible for coordinating
the Views of all the departments and agencies involved,
including the Bureau of the Budget, on the initial and
succeeding drafts of the consolidated Financial Appendix,
with a view of having available an agreed Financial
Appendix for submission with the policy statement to the
Council. To this endo the NSC Staff will) when necessary,
convene a TOWgrineetin---OrTgpaTaatives'Frinterested
TeTFRFents and agencies TO review the Financial Appendix.
8. Bureau of the Budget
a. The Bureau of the Budget will advise and assist
the Mc Staff in functioning under par. 7 above.
b. If the cost estimate of the Bureau of the Budget
differs from that of any department or agency, the Bureau
will discuss the differences. with the NSC Staff and the
department or agency in an attempt to arrive at an
agreement.
c. If the policy statement under consideration
involves expenditures of an agency not represented on
the Planning Board, the Bureau of the Budget will
identify such agency and assist the NSC Staff in securing
the appropriate data.
9. Planning Board
a. The Planning Board will consider all financial
information concerning a policy statement before making
its recommendations to the Council.
b. In the case of a conflict of views as to cost
estimates, the Planning Board may either defer considera-
tion of the proposed policy statement pending further
examination of the cost estimates or proceed on the basis
of available information. In any case of conflict of
views relative to cost estimates, the Planning Board will
submit to the Council a summary thereof.
c. In case a department or agency indicates that
the cost to carry out any aspect of the proposed policy
statement will be additional to current programming,
the Planning Board will take this factor into considera-
tion in making its policy recommendations to the Council.
10. Council Consideration
The Council will consider all financial information
transmitted to it by the Planning Board in presenting its
recommendations to the President.
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FINANCIAL APPENDIX
Cost estimates in the Financial Appendix
indicate order of magnitude only.
Approval of the policy statement does not
indicate approval of cost estimates in the Finan-
cial Appendix and is not to be interpreted as
Council endorsement of, or limitation upon, the
size of particular programs.
Appropriations and expenditures to finance
the policy will be subject to determination in
the regular budgetary process.
SPECIAL VOTES
1. All estimates are subject to the assumptions, footnotes,
and summary explanations shown below in this Financial
Appendix.
2. Although the Export-Import Bank was established by
statute for the purpose of promoting the export of
U. S. goods and services, Export-Import credits may
normally also be expected to advance U. S. national
security objectives. For this reason, data on
Export-Import Bank lending is included in this Appendix.
3, The Development Loan Fund and the Export-Import Bank
do not operate by programing the funds available to them
among recipient countries, but in general await the
receipt of applications for specific projects and act
upon such applications according to their merits and the
availability of financing from other sources. Neither
the DLF nor the Export-Import Bank makes any forecast as
to future commitments. These institutions, therefore,
take no responsibility for the cost implications contained
in this Appendix.
14 Similarly, data on P. L. 480 agreements are included
because these agreements may be expected to serve U. S.
national security objectives, even though a major
purpose is the distribution of surplus agricultural
commodities.
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1 1
PART A . COST IMPLICATIONS OF EXISTING POLICIES
Table I. Current U. S. Programs or Authorizations
(Fiscal Years . Millions of Dollars)
:
:
(Actual)
1957
:
:
(Actual)
1958
:
.
.
(Estimated)
lzed)
Military-Assistance a/
:
.
Technical Assistance
?
.
Economic Assistance
:
:
:
:
Lending Institutions:
?
.
:
:
s
:
:
Development Loan Fund b/
:
:
:
.../
Export-Import Dank12/
:
:
:
2/
PL 480 Agreements d/
:
:
:
:
2
:
Educational Exchange
:
:
:
:
.
.
:
Information Programs
s
:
:
:
Other, if any
:
:
2
:
1
:
:
:
:
a/ Includes the value of all grant military assistance whether on a
country, regional, or worldwide basis; but not the value of excess
stocks. Country programs include: equipment and supplies; training;
and construction and consumables. Regional or worldwide programs
include: packing, crating, handling, and transportation charges; follow-
on spare parts; and the cost of repairing and rehabilitating excess
stocks.
Loan Commitments
2/ (Actual figures as to date of Financial Appendix will be given in the
table. A footnote should be added giving such information eon..
cerning the prospects for the remainder of the fiscal year as is
feasible, depending on the period of the year in which the appendix
is prepared.)
c1/ At export market value; includes Title I and II agreements (Title III
agreements where of special significance)
1. 6
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PART A . COST IMPLICATIONS OF EXISTING POLICIES
Table II. Current U. S. Expenditures, Deliveries, or Disbursements
(Fiscal Years . Millions of Dollars)
: (Actual) I (Actual) : (Estimated)
: 1957 ?
? 1958 :
1 : :
Military Assistance 2./ : : :
: :
Technical Assistance : :
: : :
Economic Assistance .
. I.
Lending Institutions:
: :
Development Loan Fund b/ : :
Export-Import Bank b/ : ?
,..
: :
r PL 480 Agreements 2/ :
:
(...., Educational Exchange : :
Information Programs : :
: :
Other, if any : :
?
a/ Includes the value of all grant military assistance whether on a
country, regional, or worldwide basis; but not the value of excess
stocks. Country programs include: equipment and supplies; training;
and construction and consumables. Regional or worldwide programs
include: packing, crating, handling, and transportation charges;
follow-on spare parts; and the cost of repairing and rehabilitating
excess stocks.
b/ Disbursements. (Where significant, reference should be made in a
footnote to repayments.)
c/ At export market value; includes Title I and Title II agreements
(Title III agreements where of special significance).
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PART A - COST IMPLICATIONS OF EXISTING POLICIES
Summmlalanation and Comments
I. Defense Comments
40.01.11.M.IMIMPL-111??
A. FY 1950-56 MAP fiscal data
B. Force goals -- strategic and MAP supported
C. U. S. military commitments
D. Description of grant aid programs and contents
E. Cost sharing programs; e.g., YMDP, FAP, NATO
Infrastructure
F. Reimbursable aid programs
G. Analysis of expenditure trends
H. Description in general terms of anticipated developments
(and their effects) which would cause significant de-
partures in the FY 1960-62 period from the aid levels
shown in the tables for the FY 1957.59 period.
II. State and ICA Comments
A. Major economic assistance prior to FY 1957.
B. Economic (and where appropriate, political)
commitments
C. Economic and technical assistance programs,
including Defense Support
D. P. L. 480 agreements.
E. Educational programs
F. DLF and Ex-Im Bank loans
G. Where significant, grants and credits from international
institutions and other free world governments.
H. Significant private investment.
. 8 .
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fl
PART B - COST IMPLICATIONS OF PROPOSED POLICIES
TABLE III. Projected U. S. Programs or Authorizations
(Fiscal Years - Millions of Dollars)
?
(Est.)
1959
(Projected)
1960 1961
: Total
1962: 1959-62
Military Assistance 2/
Technical Assistance
Economic Assistance
Lending Institutions:
Development Loan Fund
Export-Import Bank
PL 480 Agreements b/
Educational Exchange
Information Programs
Other, if any
single figure or range should be used to cover
he combined lending activities of the DLF and
the EX-Im Bank over the four-year period. A
rootnote should indicate to what extent actual
commitments during the current fiscal year are
Included in the total four-year figure.
2/ Includes the value of all grant military assistance whether on a
country, regional, or worldwide basis; but not the value of excess
stocks. Country programs include: equipment and supplies; training;
and construction and consumables. Regional or worldwide programs
include: -oacking, crating, handling, and transportation charges;
follow-on spare parts; and the cost of repairing and rehabilitating
excess stocks.
b/ At export market value; includes Title I and II (Title III agree-
ments where of special significance.)
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f )
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PART B - COST IMPLICATIONS OF PROPOSED POLICIES
Table IV. Projected U, S. Expenditures, Deliveries or Disbursements
(Fiscal Years - Millions of Dollars)
: (E
: 1959
(Projected) : Total
1960 1961 1962 : 1959-62
Military Assistance
Technical Assistance
Economic Assistance
Lending Institutions:
Development Loan Fund
Export-Import Bank
PL 480 Agreements
Educational Exchange
Information Programs
Other, if any
?
?
?
?
?
?
?
A single figure or range should be used to cover
the combined lending activities of the DLF and
the Ex-Im Bank over the four-year period. A
footnote should indicate to what extent actual
disburmentsduring the current fiscal year are
kncluded in the total four-year figure.
4
Includes the value of all grant military assistance whether on a
country, regional, or worldwide basis; but not the value of excess
stocks. Country programs include: equipment and supplies; training;
and construction and consumables. Regional or worldwide programs
inciu packing, crating, handling, and transportation charges;
follow-on spare parts; and the cost of repairing and rehabilitating
excess stocks.
1)./ At export market value; includes Title I and II (Title III agree-
ments where of special significance.)
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A
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PART B - COST IMPLICATIONS OF PROPOSED POLICIES
Summary Explanation and Comments
I. Defense Comments
A. Description of the grant aid programs for the period FY 1959-
1962 with a general analysis of their content.
B. Discussion, as appropriate, of changed force goals, new policies
and necessary assumptions underlying the programs described
in (k) above.
C. Statement indicating generally those program costs which are
clearly identifiable as being attributable to the proposed
policies; referring where appropriate to the specific policy
paragraphs.
D. Analysis of expenditure trends.
II. State and ICA Comments
A. Description of the estimated economic assistance and other
programs for the period FY 1959-62.
B. Discussion, as appropriate, of considerations and assumptions
underlying the programs described in A.
C. Statement indicating generally those program costs which are
clearly identifiable as being attributable to the proposed
policies; referring where appropriate to the specific policy
paragraphs.
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ILLUSTRATIVE SCHEDULE OF PROGRESS OF AN
NSC PAPER THRQUGH THE NBC MECHANISM
Draft Policy Statement and
Financial Appendix,
Part A, circulated
Board Assistants First
Meeting on Paper
Other Board Assistants
Meetings, if necessary
Agency Contributions to
Financial Appendix,
Part B to NSC Staff
Planning Board First
Meeting on Paper and
Financial Appendix
Board Assistants Meeting
(also meeting with NSC Staff
on Financial Appendix
when necessary)
Planning Board
Final Meeting
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March 2
March 9
March 12-13
March 20
March 24
March 25
March 31
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