Office of the Historian

790.5 MSP/5–2154

Memorandum by the Acting Assistant Secretary of State for Far Eastern Affairs (Drumright) and the Special Assistant for Mutual Security Affairs (Nolting) to the Secretary of State1

secret
[Washington,] May 21, 1954.

Subject:

  • Meeting with Congressional Leaders concerning the Mutual Security Programs for the Far East.

The purpose of this meeting from our point of view is to consider the problem of how best to proceed with the authorization and appropriation of funds for the Far East under the Mutual Security Program despite the uncertainties in Southeast Asia. Speaker Martin2 (in whose office the meeting will be held) may call on you at the outset for your views. If he does so, we would suggest the following procedure:

1.
That you outline the various possible alternative situations which may develop in Indochina, perhaps roughly as follows:
a.
The continued active prosecution of the war against the Viet Minh by French and Associated States forces (the assumption on which our present Mutual Security estimates for the area are based);
b.
The internationalization of the war by participation of other forces;
c.
The conclusion of an armistice with a division or zoning of territory, with perhaps an international guarantee;
d.
The abandonment by France of the contest, the withdrawal of French troops, and the loss of Indochina.
2.
That you point out that, under any of the above situations which may develop, the need for substantial funds for the area will exist, if not for Indochina itself, then for the surrounding states, including perhaps Malaya and Burma. The question, therefore, is how to justify to the Congress and the people the authorization and appropriation of funds in a situation in which the outcome is unpredictable at present, but in which it is certain that the lack of authority to act will greatly diminish the chances of an aceptable outcome. We frankly seek the views and advice of the House leaders on this problem.
3.
On their part, the Department of State, the Department of Defense, and the Foreign Operations Administration propose consideration of the following approach:
a.
That the $584 million for military assistance presently programmed for the Far East area for the fiscal year 1955 be presented on the basis presently outlined to the Foreign Affairs [Page 506] Committee, on the understanding that changing conditions in Indochina may cause large shifts of emphasis between the recipient countries. The present draft legislation provides the necessary flexibility with respect to the Mutual Defense Assistance funds.
b.
That no changes be made in the economic and technical cooperation programs.
c.
That the $800 million proposed for Direct Forces Support for Indochina be modified in the draft bill to authorize the use of this amount, at the discretion of the President, for any purpose consistent with the purposes of the Act in the general area of the Far East. It is proposed that language for such an amendment be similar to that suggested by Senators Vandenberg3 and Knowland in 1949 to accomplish a similar purpose with respect to the China Aid fund.4 It is, of course, understood that should the situation develop in a manner which would render unnecessary or unwise the use of this discretionary fund in the area, the money would not be spent. However, it is our present belief that the authorization and provision of such a fund by the Congress would greatly strengthen the cause of the United States and its objective of organizing a collective defense of Southeast Asia.5

A position paper spelling out in more detail this proposal is attached.6

  1. The source text bears the following marginal notation: “Sec saw R[oderic] O’C [onnor] “.↩
  2. Representative Joseph W. Martin, Jr., of Massachusetts.↩
  3. Arthur H. Vandenberg of Michigan, then ranking minority member of the Senate Foreign Relations Committee.↩
  4. For the pertinent section of Public Law 81–47, approved Apr. 19, 1949, see 63 Stat. 55.↩
  5. A memorandum dated May 14, from Nolting to the Secretary, indicates that on that day Representative John M. Vorys of Ohio, Acting Chairman of the House Committee on Foreign Affairs, had suggested to Nolting the notion of a regional appropriation for military assistance and direct forces support in Southeast Asia. The memorandum bears the following handwritten notation: “The Secretary thought this was dandy … follow up … R[oderic] L. O’C [onnor]” (790.5 MSP/5–1454)↩

  6. Position paper not found attached. A copy is attached to a copy of this memorandum in U/MSA files, lot 57 D 567.

    The text of a memorandum from Dulles to President Eisenhower dated May 24 regarding a meeting with Congressional leaders at 4 p.m. that afternoon reads:

    “I have just had a meeting with the House leadership, Republican and Democratic, and including Foreign Affairs, Armed Services, and Appropriations, on flexibility of appropriations for Indochina. The meeting was most satisfactory and there was unanimity. Sam Rayburn, who was very helpful, remarked that it was the first unanimous meeting he had attended in a long time.” (Eisenhower Library, Dulles papers, “White House Memoranda”)

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