Office of the Historian

890.00/11–2354

Memorandum by Selma G. Freedman of the Bureau of Economic Affairs to the Deputy Assistant Secretary of State for Economic Affairs (Kalijarvi)

official use only
[Washington,] November 23, 1954.

Subject:

  • Statement by Mr. Stassen November 22

Attached is a statement sent out by the United States Information Agency1 with respect to Mr. Stassen’s press conference, at which time he suggested the possibility of a “Marshall Plan for Asia” with participation of European governments.

It might be useful at the Secretary’s staff meeting to make the following points:

1.
You discussed this matter with Mr. Waugh over the telephone with respect to the problem which it creates at the Rio conference.
2.
What possible answer can we give to European countries when they ask the State Department what this is all about, since Mr. Stassen indicated that they had been informally consulted by the United States.
3.
The necessity of prior notification, if not clearance, with the Department whenever Mr. Stassen makes a statement of this importance.

According to Mr. Stassen’s information man, Mr. Stassen used his press conference to obtain the reaction of foreign countries, both European and Far Eastern, to such a program, and also to condition the US electorate to the problems of Asia.2

  1. FEF 9, “Stassen Says Asian Economic Need Increases”, dated Nov. 22. It reads in part:

    “Stassen also predicted that in the future Europe will be in a position to join with the United States in helping to bolster the economies of Asian countries.

    “Stassen said Europe’s ability to help in the months and years ahead stems from the fine economic recovery Europe has made in recent years, particularly in the last two years.

    “Stassen said he favors a ‘coordinated approach’ to this problem of aid to Asia—with United States and the western nations of Europe cooperating in the problem.

    “The Organization for European Economic Cooperation (OEEC) is beginning to discuss the problem of economic aid to Asia, Stassen said.

    “Stassen said informal suggestions have been made to the OEEC, by the United States, as to how economic aid could be extended to Asia.

    “Stassen expressed the view that coordinated aid to Asia—United States and Europe participating—may well take the form of long-term development credit’ for capital goods expansion. He said that Asia ‘can absorb a lot more capital than it is absorbing now, but there is a definite limit as to the capital that could be fruitfully used in that area.’ Stassen said the limitations are due to lack of personnel and technical skill.”

    A complete text of Stassen’s statement, together with the questions and answers at the press conference pertaining to Asia and Latin America, was sent to Rio de Janeiro in FOA telegram Usfoto 246, Nov. 23, also attached.

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  2. A handwritten note at the bottom of this memorandum reads: “Kalijarvi did not raise at Secy’s staff mtg on Nov 24 W[alter?] T[rulock?]”.↩