Table Of ContentPC-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 . . . . . . . . . . . . . .
