Foreign Relations of the United States, 1964–1968, Volume VIII, International Monetary and Trade Policy

240. Letter From Secretary of Commerce Hodges to Secretary of State Rusk¹

Washington, June 16, 1964.

Dear Dean:

As I commented on signing the State-Commerce Agreement in November 1961,² if it did not work out, I would be back to discuss the matter. I told you last Friday night³ that we should discuss our problem again.

The agreement has not been fully implemented for several reasons, including lack of funds from Congress and a change in view as to the desirability of the separate commercial career specialty provided for in the agreement. Neither conceptually nor in practice at the posts can the commercial functions be cleanly and clearly separated from economic functions. They are quite similar and I have checked them personally in a score of countries.

My view is supported by the reaction of practically all the officers who have attended the last four Commercial/Economic Officer Conferences where this subject was discussed. Senior officials of this Department who have recently been overseas make the same report. The similarity of functions is also attested by the job description on economic and commercial officers recently issued by the State Department.⁴ In fact, many officers are performing both economic and commercial functions. We, therefore, proposed to Deputy Under Secretary Crockett in March the creation of a unified economic/commercial career program and requested the necessary participation by the Department of Commerce in the selection, assignment, and promotion of officers in this program.⁵

As I understand the objectives of the Foreign Service Act,⁶ it was to unify the service overseas, while maintaining appropriate interest of the several departments. Above and beyond this, the Board of the Foreign Service was created to serve as a means by which you would receive recommendations incorporating the views of the other Agencies which were utilizing the Foreign Service as their overseas arm. We alone of the Agencies outside of State have a wide range of overseas interests; yet we rely wholly on the Foreign Service while many Departments with very specific interests have their own personnel overseas. For this reason we must work together to develop the strongest possible working relationship which meets our needs as well as yours.

Our March proposals for the economic/commercial set-up, which we thought had been favorably received, have been rejected this week, and we have been told, in effect, to be satisfied with the way that our interests will be handled by State. While we have had excellent cooperation from you and other top officers of State, there remains much to be desired. The inadequacies are mainly in the area of institutional arrangements and of attitude toward commercial work both on the part of Regional Bureaus in State and at posts overseas. I am greatly discouraged!

I think it necessary therefore that we sit down and discuss where we go from here in pursuing the objectives which we have agreed with the President have a top priority in overseas activities. Let me know when it is convenient to you.

With best personal regards.

Sincerely yours,

Luther H. Hodges ⁷

P.S. There is a long letter from Crockett dated June 6th raising certain objections,⁸ many of which are not too pertinent. We will be glad if you wish to give you detailed comments on each point raised.

1. Source: Washington National Records Center, RG 40, Secretary of Commerce Files: FRC 69 A 6828, State Department Agreements—1964. No classification marking. Drafted by Behrman and Wyman on June 15 and rewritten by Hodges.
2. A copy of the memorandum of agreement between the Department of State and the Department of Commerce on International Commercial Activities, November 15, 1961, is ibid.
3. June 12, presumably at a White House dinner for Erhard. (Johnson Library, Rusk Appointment Books)
4. Not further identified.
5. Reference is to a memorandum from Behrman to Crockett, March 6. (Washington National Records Center, RG 40, Secretary of Commerce Files:FRC 69 A 6828, State Department Agreements—1964)
6. The Foreign Service Act of 1946, as amended; 22 USC 801.
7. Printed from a copy that indicates Hodges signed the original.
8. Crockett’s June 6 letter to Franklin D. Roosevelt, Jr., contains many handwritten marginal comments, presumably by Roosevelt. (Washington National Records Center, RG 40, Secretary of Commerce Files: FRC 69 A 6828, State Department Agreements—1964)