FOREIGN RELATIONS, 1950, VOLUME I


ment of a program of specific measures to achieve the purposes set
forth in such a policy, and the assignment of responsibility within the
government for implementing the program. Simultaneously, the
problem, the policy and the program must be explained to the people,
and ways must be found to enlist public interest and support.
  The problem of the dollar gap requires a far higher degree of co-
ordination between our domestic and foreign economic policies than
heretofore. It is of such importance and size that I believe the whole
machinery of government must be brought into play if we are to
achieve success in solving it. Therefore, your personal direction is
needed, not only at the initiation of this program, but throughout its
development and implementation. In order that such direction should
not claim too much of your time, I recommend that you consider
using one of your staff assistants to assist you in directing and co-
ordinating the Administration program to adjust the balance of pay-
ments of the United States.
   The staff assistant should be familiar with the techniques-such as
 those developed in the NSC---by which the President's leadership
 can be supported both by staff assistance and by a flexible system of
 consultation with Cabinet Members and other agency heads. Such a
 person, therefore, assisted as necessary 'by officers detailed from other
 agencies, would afford an appropriate instrument for insuring Presi-
 dential direction and control without encroaching upon the line re-
 lationship of the agency heads to the President, and for insuring
 integrated and cooperative effort throughout the Executive Branch.
   1) I suggest, therefore, that at some convenient time in the near
 future you devote a Cabinet meeting to this matter and invite the
 attendance of the staff assistant, designated by you, together with
 the ECA Administrator, the Chairman of the Council of Economic
 Advisors and the Director of the Bureau of the Budget.
   a) That you present the attached paper3 to them as a statement
 of the problem and of possible courses of action.
   b) That you express your wish to receive coordinated advice on
 the basic policy decisions involved and your desire to have the heads
 of the departments and agencies in a cooperative effort develop pro-
 grams whereby the policies decided may be implemented.
   c) That you assume personal leadership of this whole "campaign"
 to close the dollar gap, and explain to them your reasons for so doing.
   d) That you announce you have asked your designated staff official
 to serve as your principal coordinating assistant for this problem, and
 that whenever advisable he should recommend to you additional meet-
 ings with the appropriate officials, and (on your behalf) make
 arrangements for such meetings.

   a Intra.


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