FOREIGN RELATIONS, 19 5 0, VOLUME I


  Mr. Acheson asked the Secretary of Defense if he had any sugges-
tions as to howthe meeting should proceed and, on receiving a negative
reply, said that there did not seem to be anything more to discuss at
this meeting and asked Mr. Johnson if he would like to adjourn.
Mr. Johnson agreed.

711.00/3-2450
     Memorandumn  o Conversation, by the Secretary of State'

SECRET                             [WASHINGTON,] March 24, 1950.
Participants: The Secretary
               Rep. Christian A. Herter (R. Mass.)
               H-Ben H. Brown, Jr.
  Representative Herter called on me on March 21, 1950. He stated
that he wished to discuss several matters about which he was gravely
concerned., For some time, he disclosed, he has realized that the United
States is confronted with three major objectives, and that all three
cannot possibly be reached. The first is balancing the Budget, the
second foreign commitments, and the third domestic commitments.
He feels that it is impossible to make and carry out necessary foreign
commitments and make the social advances at home which are desir-
able and at the same time keep our dollar sound by balancing the
budget. There must be a de-emphasis of at least one of the three.
   He cited as -a particular example the National Science Foundation
bill which came before the Rules Committee. He said that Representa-
tive Wadsworth2 was very much concerned about this bill since,
although a very desirable project, it was another new expenditure.
The Rules Committee was slow on acting on this measure and the
President called Representative Wadsworth in. Representative Wads-
worth expressed to the President his concern over the.number of meas-
ures which had been proposed which would increase the Federal
deficit, and said that although the bill was a worthy one, he did not
consider it an essential expenditure-at the present time. The 'President
in reply stated that he-was not worried 'about the deficit because he:
had asked the Bureau of the Budget to make a projection of expendi-
tures and revenues over the next several years and this projection, as
a result of the anticipated increase in national income and reduction
in military budget and foreign spending showed by 1953 a surplus
which could be used for debt retirement. The President was thor-
oughly satisfied with the situation but Representative Wadsworth was

   Drafted by Ben II. Brown, Jr., Deputy Assistant Secretary for Congressional
 Relations.
   2 James W. Wadsworth of New York, Member of the House Ruiles Committee.


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