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THE ,POINT FOUR PROGRAM 1
A/MS Files,2 Lot 54D291, Drawer 21
         Memorandum Prepared in the Department of State
                                     [WASHINGTON,] June 20, 1950.
         LEGISLATIVE..BACKGROUND OF POINT FOUnPRoGRAM
                             SUMMARY
   The Point IV Program as outlined in the President's Inaugural
speech on January 20, 1949, consists of an endeavor on our part to
cooperate with other countries in -assisting the efforts of the people
of underdeveloped areas to improve their economic conditions. Two
methods of cooperation were set forth: (1) sharing teclmical knowl-
edge and skills and (2) fostering the flow of capital investment,
   The basic legislation on this program is contained in Title IV of
 Public Law 535, 81st Congress, approved June 5, 1950.3 This Title
 sets forth certain findings and policies of the Congress which coincide
 with the original proposal of the President and indicate our common
 interest and concern in the economic and social progress of all peoples.
 It outlines the conditions considered essential if technical assistance
 and capital investment are to make their maximum contribution to
 economic development. It states our intent to assist underdeveloped
 areas through the two methods proposed by the President and lays
 down certain policies to guide the activities of financial agencies of
 the United States Government in order to achieve the maximum effect
 for economic development.
   The Act also authorizes the President to administer a program of
 bilateral projects and to delegate his authority for carrying out the
 program to the Secretary of State. It authorizes contributions to the
 United Nations and to other international organizations for technical
 cooperation programs "which will contribute to accomplishing the
   1For previous documentation on this subject, see Foreign Relations, 1949,
vol.
 I, pp. 757 ff.
   "Consolidated administrative files of the Department of State for
the years
 1949-1953, as maintained by the Management Staff of the Bureau of Administra-
 tion.
   I Public Law 535 was captioned "Foreign Economic Assistance Act of
1950";
 64 Stat. 198. Title IV was entitled "Act for International Development";
64 Star.
 204.
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