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United States Department of State / Foreign relations of the United States, 1951. Asia and the Pacific (in two parts)

East Asia and the Pacific: multilateral relations,   pp. 1-265 PDF (105.5 MB)

Page 3

conferencesi with ECA and State Department officials discussing re-
orientation of the program .in the light of the existing "front line"
situation where the Missions are operating. One result of these dis-
cussions has been the departure-for Southeast Asia of a "task force'!
of ECA-and State Department administrative officers to make on-
the-spot decisions on administrative support problems. Counterpart
aind other problems are being reexamined in the light of Mr. Griffin's
discussions in the field.
  On January 6 the President signed a bill authorizing transfer,
whenever "he determines that such action is essential", of ECA
funds (Public Law 472, 80th Congress, as amended) for the purpose
of carrying out the China Area Aid Act (Title 2, Public Law 535,
81st Congress),.up to a total of 3 percent of the ECA Act funds
available -for FY 1951. This authority makes it possible for ECA to
request transfer of not more than $75 million for expansion of its
Far East program, The most immediate Far East Program needs are
$15 million for initiating: the Philippine program,5 $15 million for
expanding.. the,.. Formosa program6 and $4.5 million to replace Far
East program funds previously used to finance grain for India.7
  As of January 8, over $57 million of. ECA funds previously allotted
for Far East programs had been obligated for procurement authoriza-
tions and approximately $1 million for administrative expenses, leav-
ing -an unobligated balance (of allotted funds.) of $4 million. The
remainder of the $92 million of funds appropriated for Far East aid
has not yet been allotted to the Far East Program Division.
  The China Mission is now carrying out a special commodity pro-
gram for Formosa to offset deterioration in the island's foreign ex-
change position: as well as the. seasonal peak of commodity demand.
As a result of official abandonment by the Chinese Government of
policies which pegged-the value of Formosan currency, the price level
in Formosa has risen,, but ECA's special commodity program has
been an important factor in preventing inflationary pressures from
getting out of hand to date. As of January 8, over $35 million had
been obligated for ECA's Formosa program, and firm requests had
been received by E CA/W   for an additional $16 million of food, raw
materials and textiles. Further allocation of funds to the Formosa
program wili be required if the full $16 million is to be approved,
and if" a continuous supply pipe-line to Formosa is to be maintained,
aid to the area. In December, Griffin made a second regional circuit tour.
For docu-
mentation on the Griffin Mission and related activities, see Foreign Relations,
1950, vol. vi, pp. 1 ff.
  ' For documentation on U.S. relations with the Philippines, including informa-
  tion on economic assistance, see pp. 1491 ff.
  SDocumentation on U.S. aid to the Republic of China is scheduled for publica-
  tion in volume vii.
  "For documentation on U.S. relations with India, see pp. 2085 if.

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