50. Memorandum From the Deputy Director of the Office of International Financial and Development Affairs (Turnage) to the Deputy Under Secretary of State for Economic Affairs (Prochnow)1
SUBJECT
- Briefing Discussion with Mr. Hoover Concerning the Recommendations of Clarence Francis to the Dodge Council on P.L. 480
The discussion centered around the major recommendation which concerns the use of surplus agricultural commodities to stimulate economic development and higher consumption in the low income, low consuming areas of the world.
[Page 161]Mr. Hoover felt that the recommendation was an over-simplified expression of a rather complex process; he did not propose alternate language but indicated he might talk with Mr. Dodge about it. He said that he did not believe such programs would necessarily result in permanent new markets for U.S. agricultural products. He was more persuaded of the desirability of such programs on humanitarian grounds, and agreed that they afforded the best means of implementing P.L. 480.
He did not believe that the P.L. 480 programs should be determined by their impact on the budget. He did believe, however, that it would be possible to bring about some limited reduction in aid programs by use of P.L. 480. For example, he used the illustration that where there was an aid program of 100 units and a P.L. 480 program of an additional 100 units could be initiated it should be possible to reduce the aid program by about 20 units so as to have a total program of about 180 units. He agreed that a stronger case for reduction in aid could be made over a period of years.
Mr. Hoover stated that he would be unable to attend the Dodge Council meeting (November 8) and that Mr. Prochnow and Mr. Kalijarvi should handle the meeting for State.
- Source: Department of State, E–CFEP Files: Lot 61 D 282A, Disposal of Surplus Agricultural Products Abroad—CFEP 528. Official Use Only.↩