POINT FOUR PROGRAM


855


  practiced in the narrow sense. Our field missions and the regional
  bureaus will participate- actively in the 'conduct of the program.
  Fourth, I do not share the fears about field technicians being answer-
  able to two bosses. The concept of one administrative boss and several
  technical bosses is as old as-big organization. It can work effectively.
  Fifth, as long as the State Department retains the authority to ap-
  prove projects and retains. control over the purse strings, it should be
  able to assume responsibility for results.
    3. Intradepartmental Orgainmzation
    As you know thereare. still rather pointed differences of opinion
  within the Department concerning the relationships between the genm
  eral 'manager's office and regional ,bureaus. This first came to light
in
  connectionr with our attempts to obtain clearance on a departmental
  announcement which established TCD. Previous to that the regional
  bureaus had in effect cleared the management plan which assumed
  a highly centralized operation.
    OMB recommended the'division of functions'spelled out in Depart-
 mental Announcement #41, February 21, 1950. (Tab D 8)I believe
 this same division of functions ,should continue as'between the Point
 IV Administrator's office and the regional bureaus. For many reasons
 a highly integrated operation would be desirable especially during
 the initial stages of the program. Once the complex interagency and
 interprogram relationships become established a considerable amount
 of decentralization can take place. Meantime, the regionalbureaus will
 participate to a large extent both in program planning and in con-
 tinuing supervision of operations,. The budget. estimates submitted to
 Congress provide for.24 positions in the regional bureaus as compared
 with 86,in-the general manager's office. It is:no contemplted that the
 general manager will establish any regional groupings within his
 office. He will utilize regional bureaus to the maximum extent pos-
 sible. It is likely that both the other agencies and Bureau of the Budget
 would strongly oppose a large-measure of decentralization of authority
 over the program within the Department during its initial stages.
 COnclusions
   I think itwould be extremely unwise to completely scrap the manage-
 ment plan at this time because we would be reneging on a great many
 8Not.attached., This provided .for the establishment of an, Interim Office
for
 Technical Coperation and Development (TOD), under the direction of the
 Assistant Secretary for Economic Affairs. The office Was to have "'specific
action
 responsibility" for the Point IV program: to develop overall policies,
formulate
 general program plans, coordinate specific program plans developed by -the
reg-
 ional bureaus; approving projects, determining action agencies, and allocating
 funds for U.S. bilateral programs; directing negotiations and relationships
with
 intergovernmental agencies and other U.S. agencies. For text, see Department
of
State Bulletin, M.arch 13, '1950, pp. 422 and 42,3.