Office of the Historian

139. National Security Action Memorandum No. 1500

Washington, April 20, 1962.

TO

  • The Secretary of State
  • The Secretary of Defense

SUBJECT

  • Using U.S. Military Engineers as Contracting Agents on AID Projects

The President would appreciate your exploring the possibility of expanding the use of our military engineers as contracting and supervisory agents on AID projects.

He is aware that the Army Corps of Engineers and the Navy’s Bureau of Yards and Docks are now working very effectively in this capacity on a number of projects. He recognizes that there may be situations where, for political or economic reasons, we can not use the engineers this way. However, he believes that we should take advantage of their skill and excellent reputation wherever possible and that some expansion of their activities may be of considerable value to our aid programs.

Would you please review the opportunities and problems in this field and report your recommendations to the President by 1 June.1

McGeorge Bundy
  1. Source: Department of State, S/S-NSC Files: Lot 72 D 316, NSAM No. 150. Confidential. Information copies were sent to General Taylor and David E. Bell. NSAM No. 150 apparently originated with a suggestion from Chester Bowles who, after traveling in Iran, Ethiopia, Egypt, Pakistan, and Afghanistan, observed that the U.S. Army Corps of Engineers could make a “massive contribution” to the U.S. overseas development effort. (Airgram 355 from Karachi, March 6; Department of State, Central Files, 611.90D/3-662) A memorandum from Harold Saunders to McGeorge Bundy, April 16, followed up on Bundy’s request for an NSAM on this subject. (Kennedy Library, National Security Files, Meetings and Memoranda Series, NSAM No. 150)↩
  2. The deadline for the report was later extended to September 1, 1962. (Memorandum from Bundy to Rusk and McNamara, June 13; Department of State, S/S-NSC Files: Lot 72 D 316,NSAM No. 150) For a follow-up response in a memorandum from Acting AID Administrator Coffin to McGeorge Bundy, October 30, as well as a dissenting view contained in a memorandum from Robert L. Moorman, Deputy Director of Engineering (AID), to Fowler Hamilton, November 9, see the Supplement.↩