POINT FOUR PROGRAM. 865

880.00-— TA/ 8—-1250: Circular telegram |

The Acting Secretary of State to Certain Diplomatic and Consular
Offices 3

CONFIDENTIAL my WasHINeToN, September 12, 1950—7 a. m.

Pres sig 34.5 million appropr iations for overall Pt IV program FY
51 enables you now to inform govt to which accredited that you pre-
pared receive its.proposals for US bilateral technical aid pr ojects and
give all possible assistance preparing them for transmission Dept in
sufficient detail permit prelim appraisal here. For ur guidance Dept

| considering fol tentative working estimate (target figures) for FY 51

funds. for each SOA country : India $1.2 million; Pak $600 thousand;
Ceylon $100. thousand; Afghan $50 thousand ; and Nepal $50 thousand.
In ur discretion you may mention to local covt approx amt available
for country to which accredited without re to tentative figures for
any other countries. In discussions with local govt dept prefers you
translate amt available in terms of services to be supplied counting
approx annual cost one US expert at $15 thousand and one SOA
trainee to US at $4 thousand. Indicate that small amts machinery,
equipment, publications can be made available only in connection with
demonstrations or training projects and that local govts, as hitherto,
are expected bear certain local costs payable in their currencies. Em-_
phasize that real ‘significance any program is not dollar amt: but
promise of contributing to econ development, stimulating both do-
mestic and fon investment and furthering objectives Pt IV statute.
For planning purposes Dept wld appreciate Embs views re priorities
of projects in light local conditions. You are authorized open conver-
sations with local govt, forward project proposals expeditiously with
indication ur judgment (as well as that of local govt) re priorities, and -
inform local govt that some form of public agreement or informal ex-
change of. notes. will, be ) Mecessary before actual initiation Pt IV
program. : | i oO
— Individual projects comprising proposed program shld be listed or
at least grouped in accordance priority, but program: shld be com-
prehensive « even if clearly exceeding dimensions above indicated. This
wld not preclude prompt Dept consider ation individual high priority
projects (1) urgently desired by local govt and (2) strongly sup-
ported by US mission if such projects are closely related to country Ws
own development program (as i in case of projects already begun or
proposed). Dept suggests you welcome initial proposals with agegre-
gate estimate cost double the above tentative working estimates be-

io Sent. to the Embassies at New Delhi, Karachi, Colombo : repeated to ‘Kabul.