FOREIGN RELATIONS, 19 5 0, VOLUME I


aid programs that were primarily an adjunct to the United States
defense program? The organization with which relations had to be
clarified was the Economic Cooperation Administration (ECA),
already supporting Point IV-type projects in the colonial African
possessions of the OEEC metropolitan governments and in early 1950
about to undertake economic aid to strengthen the economies of the
newly independent and underdeveloped countries of Southeast Asia
in support of more immediate defense and political goals rather than
long-range economic development (the so-called STEM programs).
The upshot was a Department of State-ECA agreement in April 1950
in respect of colonial Africa and another State-ECA understanding in
November 1950 with regard to Southeast Asia, delineating a division
of responsibilities in those areas as between types of economic aid
programs. There is an extensive documentation on these matters in
the Department of State's central indexed files (800.000-TA, 820.00-
TA, 870.00-TA, 880.00-TA, 890.00-TA, and country files as appro-
priate) and in Lot Files 122 and.54-D291. Essentially, it may be said
that at the end of 1950 Latin America was the only area where-there
were Point IV programs of significance in being, -and these were
essentially IIAA programs.
  The papers that follow are intended to illustrate aspects of some
of the problems just described- and do not necessarily appear chrono-
logically.


A/MS Files, Lot 54D291, Drawer 48
Memorandum by the Chief of the Division of Organization (Gordon)
to the Director of the Office of Management and'Budget (Howell)
                                     [WAsMNGTOX,] May 31, 1950.
 Subject: Management of the Point IV Program
 Problems
   Now that legislation has been enacted authorizing a Point IV pro-
 gram up to a level of $35,000,000 for 1951, and congressional appro-
 priation hearings are about to be held, it is essential that organizational
 plans for the program be firmed up and that there be an agreed-upon
 State Department position with regard to the role of other U.S.
 agencies in the administration of the program.
   Program planning and development has been underway for about
 a year in the Department (principally in E) with extensive partici-
 pation by 8 or 9 other federal agencies through the ACTA.' For about

   Interdepartmenftal Advisory Committee on Technical Assistance.


852