Secretary’s Memoranda: Lot 53 D 444: Secretary’s Memoranda—October 1950
Memorandum of Telephone Conversation, by Miss Barbara Evans, Personal Assistant to the Secretary of State
Mr. Foster1 telephoned the Secretary to express his concern over the way in which the matter of aid for Yugoslavia is turning out. Mr. Foster said he was afraid that ECA was going to be the single contributor to the program of aid, whereas at the meeting previously held in the Secretary’s office on October 18,2 it had seemed that the burden would be carried by several agencies.
The Secretary said he thought Mr. Foster was misinformed. The program, as he understood it, was that ECA would take care of 175,000 tons of wheat; the Ex-Im Bank will take care of barley and the freight to an amount of somewhat under $4,000,000. Agriculture has reduced its various prices to a point which does not strain them. “We” are ready to put in up to $4,000,000 a month to a total of $16,000,000 to take care of other items. This latter commitment depends upon whether Tito will sign a very much watered down agreement under MDAP, which Ambassador Allen thinks there is a 50–50 chance of his doing.3 If Tito will not sign a military agreement, then the only thing that might be done would be to have Secretary Brannan4 take care of these things from Section 32 funds.5
[Page 1484]Mr. Foster said there was one point which had not been mentioned in connection with the possibility that some deal might be worked out to have flour shipped from Italy, and that was that our own millers, who are a powerful and vocal group, would object if they were not brought in to some extent. If it could be worked out in some way that they could do some of the milling, their objection might be minimized. The Secretary thought that this would depend on our getting some money from Congress, with which Mr. Foster agreed, suggesting that this be one of the points in asking for funds.
The Secretary told Mr. Foster that he had gone over the matter with the President today and had left the memorandum6 with him and had asked how he wanted the question brought up. The President had suggested doing it at Cabinet meeting tomorrow, but Mr. Foster pointed out he would not be there. It was agreed that the Secretary would try to have the President call a meeting immediately following cabinet of the persons directly involved in the Yugoslav matter. (This he later did, and the meeting is set for 10:30 tomorrow, with the White House calling the people.7)
Mr. Foster then said he was planning a trip to South East Asia before Congress got back, although if the rumor that they would be called back about November 15 were true, he would probably not be able to get back that soon. The Secretary agreed that it was a sound idea for him to go.
- William C. Foster, Administrator of the Economic Cooperation Administration.↩
- No record has been found of the meeting under reference here.↩
- See footnote 2, p. 1481.↩
- Charles F. Brannan, Secretary of Agriculture.↩
- The reference here is to Section 32 of the Commodity Credit Corporation Charter Act of June 29, 1948; 62 Stat. 1070.↩
- The reference here is to the memorandum prepared by the Department of State, October 25, p. 1480.↩
- Regarding the meeting under reference here, see the memorandum by the Secretary of State, October 27, infra.↩