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Composite report of the President's Committee to Study the United States Military Assistance ... PDF

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PC-AAA- 'I4'1 Volume I Composite Report Of The President's Committee To Study the United States Military Assistance Program 708 Jackson Place NW. Washington, D.C. August 17, 1959 P R E F A C E The Annexes to the composite report of the President's Committee to Study the United States Military Assistance Program are contained in Volume I1 of this series. The President's Committee To Study the United States Military Assistance Program (November 1958-August 1959) L$B* WILLIACMhHa i.r mDaRtiA. PEJRr., 111 The President's Committee To Study the United States Military Assistance Program TERMS OF REFERENCE A. Letter from The President of the United States Addressed to the Chair- man of the Committee on November 24, 1958 B. Extract from the Fiscal Year 1960 Budget Message of The President of the United States Addressed to the Congress of the United States on January 19, 1959 Terms of Reference A WASHINGTONo, vember 24, 1958. DEARB ILL: I am extremely gratified by your agreement to serve as chairman of the committee I have appointed to study the United States Military Assistance Program. I request that your committee undertake a completely independent, objective, and non-partisan analysis of the military assistance aspects of our Mutual Security Program. I t is appropriate, after some eight years of mutual defense effort, to evaluate the results to date, and to recom- mend the most suitable means whereby the free world's defenses may be insured. The study should, of course, take account of the many highly significant technological, economic and political developments since the origin of the present Military Assistance Program. What is needed from your committee is a forthright evaluation of the extent to which future military assistance can, by strengthening our friends and allies, advance U.S. national security and foreign policy interests. In developing this study, I hope that your committee will focus on the basic purposes to be served by a Military Assistance Program and the standards and methods which can best be used in determining its levels and character. In making this appraisal it will be necessary for your committee to consider the impact of our military assistance programs on those related portions and objectives of the mutual security effort which are directed primarily at the economic betterment and growth of the free world. I am particularly interested in your committee's critical appraisal, after considering all relevant aspects of U.S. international security programs, of the relative emphasis which should be given to military and economic programs, particularly in the less developed areas. The impact of present and anticipated weapons developments and the possibilities of stimulating such developments through cooperative activities with our allies should of course be a part of your consideration. It would be advantageous if your committee could furnish me with some preliminary conclusions which can be taken into account in presenting the Mutual Security Program to the Congress a t its next session. I am sure that this would be most helpful to me and to the Congress. However, I desire that your study and final recommendations be the product of a thoroughgoing analysis which I realize might well take longer. The Secretaries of State and Defense and the Director of ICA are pre- pared to afford your committee the full cooperation of their departments and agencies and any facilities or other assistance which you may require. Sincerely, DWIGHDT. EISENHOWER. The Honorable WILLIAMH . DRAPERJ,r ., Army and Navy Club, 1627 Eye Street NW., Washington, D.C. Terms of Reference B Extract From the Fiscal Year 1960 Budget Message of the President Addressed to the Congress, 19 January 1959 ". . . The accomplishments, future needs, techniques, and interrela- tionships of military and economic assistance need to be reassessed in the light of continuing change in military technology and strategy and in economic and political conditions, and with consideration of new Communist techniques in waging the cold war. Therefore, I recently appointed a committee of outstanding citizens, with experience in government, the Armed Forces, and business, to appraise the military assistance program and the relative emphasis the United States should place on military and economic aid. Accordingly, in the present budget, provisions for the mutual security program are subject to whatever recommendations I may make in connection with my later transmission to the Congress of this program . . ." Composite Report of The President's Committee To Study the United States Military Assistance Program CONTENTS Terms of Reference . . . . . . . . . . . . . . . CHAPTER ONE: PRELIMINARY CONCLUSIONS Letter from the Committee Addressed to the President of the United States on March 17. 1959 . . . . . . . . . . . . . . . . . . . . . I . The World Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1 . Need For Long Term Program . . . . . . . . . . . . . . . . . . . . . . . . . I I I . Free World Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV . North Atlantic Treaty Organization . . . . . . . . . . . . . . . . . . . . . V . Other Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI . The Pipeline-Unexpended Balances . . . . . . . . . . . . . . . . . . . . VII . Military Assistance Program for Fiscal Year 1960 . . . . . . . . . VIII . Economic Aid Program for Fiscal Year 1960 . . . . . . . . . . . . . IX. The Cost of the Mutual Security Program . . . . . . . . . . . . . . . . . . X . Criticisms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X I . Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Letter from the President of the United States Addressed to the Chairman of the Committee on March 18, 1959 . . . . . . Letter from the President of the United States Addressed to the President of the Senate and to the Speaker of the House of Representatives on April 29, 1959 . . . . . . . . . . . . . . . . . . CHAPTER TWO: T H E ORGANIZATION AND ADMINIS- TRATION O F T H E MILITARY ASSISTANCE PRO- GRAM Letter from the Committee Addressed to the President of the United States on June 3. 1959 . . . . . . . . . . . . . . . . . . . . . . . . . . I . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1 . Discussion of Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . A . Planning for Military Assistance . . . . . . . . . . . . . . . . . . . . . . . B. Development of the Military Assistance Program and Pres- entation to Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C . Leadership Role of the Ambassador in Planning and Pro- gramming Military Assistance . . . . . . . . . . . . . . . . . . . . . . . 11 . Discussion of Recommendations-Continued D . Inclusion of Military Assistance Appropriation in the De- partment of Defense Budget . . . . . . . . . . . . . . . . . . . . . . . . . E . Continuing huthorization for Military Assistance . . . . . . . . F . Implementation of the Military Assistance Program after . . Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G . Management of the Military Assistance Program . . . . . . . . 1. Department of Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . Delegation of Greater Authority to Unified Commands . 3 . Speedier Allocation of Funds to the Military Depart- partments for the Procurement of Military Assistance Materiel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . Improvements in Military Assistance Actions by the Military Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . I11 . Recapitulation of Recommendations . . . . . . . . . . . . . . . . . . . . . . Letter from the President of the United States Addressed to the Chairman of the Committee on June 24, 1959 . . . . . . . . . Letter from the President of the United States Addressed to the President of the Senate and to the Speaker of the House of Representatives on June 24, 1959 . . . . . . . . . . . . . . . . . . . . . CHAPTER THREE: ECONOMIC ASSISTANCE PKO- GRAMS AND ADMINISTRATION Letter from the Committee Addressed to the President of the United States on July 13. 1959 . . . . . . . . . . . . . . . . . . . . . . . . Part One-Programs I . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A . Promotion of Economic Development . . . . . . . . . . . . . . . . . B. Defense Support of Military Allies . . . . . . . . . . . . . . . . . . . . C . Achievement of Special Foreign Policy Objectives. . . . . . . I1. Soviet Economic Offensive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I I1 . Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A . Requirements and Availabilities . . . . . . . . . . . . . . . . . . . . . . B. Relations with Recipients of Aid . . . . . . . . . . . . . . . . . . . . . C . Loans and Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D . Surplus Agricultural Commodity Assistance . . . . . . . . . . . . E . Technical Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Mutuality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . Greater Use of Contractors . . . . . . . . . . . . . . . . . . . . . . . 3 . Institutional Development-Regional Approach . . . . . . . 4 . Role of Multilateral Agencies . . . . . . . . . . . . . . . . . . . . . I I I . Economic Development-Continued Page F . The Need for Continuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 1. Continuity for Development Loan Fund . . . . . . . . . . . . 83 2 . Continuity for Technical Assistance . . . . . . . . . . . . . . . . 85 3. Continuity for Surplus Agricultural Commodity Assist- ance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . Annual Congressional Review . . . . . . . . . . . . . . . . . . . . . G . Multilateral Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. The World Bank and the Monetary Fund . . . . . . . . . . . 2 . International Development Association . . . . . . . . . . . . . 3. Other Forms of Multilateral Aid . . . . . . . . . . . . . . . . . . . H . Contribution of Private Enterprise . . . . . . . . . . . . . . . . . . . . IV. Defense Support and Special Assistance . . . . . . . . . . . . . . . . . . V . The Population Question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI . Relation to Foreign Economic Policy . . . . . . . . . . . . . . . . . . . . Part Two-Administration VII . Scope and Complexity of the Problem . . . . . . . . . . . . . . . . . . . VIII . The Present Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A . Current Structure and Relationships . . . . . . . . . . . . . . . . . . B. Handicaps to Effective Administration . . . . . . . . . . . . . . . . I X. Basic Concepts for Organization and Administration of the Economic Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . . X . Steps to Carry Ou t the Basic Concepts . . . . . . . . . . . . . . . . . . . A . Consolidation of the Several Related Economic Assistance Responsibilities in Washington in a Single Agency . . . . 1. Need for A Single Agency . . . . . . . . . . . . . . . . . . . . . . . . 2 . Functions of the Agency . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . Special Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a . Encouraging Private Investment . . . . . . . . . . . . . . . . b . Coordination with International Programs . . . . . . . c . Coordination with Overseas Activities of other Gov- ernment Departments . . . . . . . . . . . . . . . . . . . . . . . . B. Long Range Planning and Continuity of Programs . . . . . 1 . Improved Long Range Planning . . . . . . . . . . . . . . . . . . . 2 . Appropriate Legislative Authorizations for Future Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . Personnel Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . C . More Effective Decentralization to the Field . . . . . . . . . . . D . Strong Foreign Policy Direction Balanced with Clear Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . 1. Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . Coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X I . Location of the Economic Assistance Agency . . . . . . . . . . . . . .

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