our cash receipts from exports, we must include in our efforts a reduction in certain governmental payments of dollars to foreign countries.

A definite improvement in our balance of payments situation is mandatory not only to insure our economic well-being and military security here at home but also to insure that the United States can continue as a strong partner in the future economic growth and military strength of the free world. We seek this improvement within policies which will not diminish our military strength, will not impair our international economic programs, and will enable us to continue to pursue our objectives of a higher level of world trade and the free flow of funds connected therewith.

The United States currency system serves a double purpose. It meets our domestic needs, and the dollar has also become an essential cornerstone in the international financial system of the free world. It is, therefore, imperative that the United States give the very highest priority to attaining a reasonable equilibrium in its international balance of payments.

To this end, we must take all those steps in the sphere of United States governmental activity that will immediately contribute to reducing the deficit in our international payments. In addition, we need to carry on and intensify those governmental policies which will contribute to this objective over a longer period, including the following:

1. In the field of international trade, we must:

(a) Continue to press other countries urgently, and particularly those that are economically and financially strong, to reduce tariffs, relax quotas, and remove trade restrictions that hamper United States exports, and also urge these countries to reduce or eliminate internal taxes and other measures that have a special impact in curtailing their purchases of United States goods and services.

(b) Continue to take all reasonable means to increase our exports, including facilitating the financing of exports where this is needed to increase our sales both of consumer goods and capital goods.

2. In the field of international finance, we must:

(a) Insist that our friends and allies accept their full share of the costs of

maintaining the security of the free world.

(b) Continue urgently to insist that the other economically advanced countries of the free world increase their share of the long-term, truly developmental type of financing extended to the developing countries.

(c) Urge international institutions to use as fully as possible currencies other than dollars available to them, whenever and wherever possible.

(d) Encourage the other strong countries to permit the borrowing by these institutions and by other borrowers in their capital markets where appropriate.

(e) Continue to review all phases of our governmental operations, both at home and abroad, in order to minimize the balance of payments effects of these operations.

3. Equally important are policies relating to our domestic economy. In this area, we must:

(a) Continue to implement fiscal, financial, monetary and debt management policies of the Government and the Federal Reserve System designed to avoid inflation in the United States.

(b) Continue to recommend to both management and labor that they take all reasonable steps to insure the competitiveness of United States-produced goods in the export market, and actively pursue opportunities in those markets. While these and other policies and procedures are undergoing critical examination, there are certain measures which, I believe, can and should be taken now by administrative action and, accordingly, I direct the following:

1. Without diminishing our effective military strength and recognizing that the actions below may involve a budgetary adjustment, the Secretary of Defense shall:

(a) Reduce and thereafter limit the number of dependents abroad of military and civilian personnel to a total of not more than 200,000 at any one time, which total shall be subject to annual review by the President. This reduction shall be accomplished at the rate of not less than 15,000 per month commencing January 1, 1961, pursuant to such rules and regulations as the Secretary may prescribe and shall, to the maximum extent feasible, apply to dependents located in the highly industrialized countries with strong currencies. Exceptions to the foregoing limitations shall require the

personal authorization of the Secretary or Deputy Secretary of Defense.

(b) Take promptly all possible steps to reduce by a very substantial amount the expenditures, from funds appropriated to the military services and for the military assistance program, that are planned for procurement abroad during calendar year 1961, by establishing a minimum amount by which such procurement shall be reduced.

(c) Prohibit the purchase of foreign goods by the non-appropriated fund activities related to the military services, except where exceptions to this prohibition are made under the personal authorization of the Secretary or Deputy Secretary of Defense.

2. The Secretary of the Treasury shall:

Take for the United States Coast Guard the same measures as set forth under Section 1, (a), (b) and (c) above. 3. The Secretary of State shall:

(a) Instruct the Director of the International Cooperation Administration, a United States foreign aid agency utilizing public funds, to adopt a policy which will place primary emphasis on financing goods and services of United States origin in all of its activities. In addition, a ceiling shall be placed on operations which do not finance direct procurement of United States goods and services, and efforts shall be made to minimize the balance of payments effect of these operations. The amount of commodities now being purchased abroad with ICA funds shall be reduced to the lowest possible figure. It is recognized that such a reduction, by maximizing procurement with United States foreign aid funds of United States goods and services, may involve budgetary adjustments.

(b) Together with the other agencies concerned review the area of United States trade relations and negotiations with a view to improving the current receipts of the United States from sales abroad. Particular attention shall be directed to maximizing tariff concessions by foreign countries under current tariff negotiations and assuring that these concessions as well as previous concessions granted to the United States are made fully effective to the benefit of American exports. Even where no formal commitment is involved, the economically strong countries shall be urged to continue dismantling their quantita

tive restrictions, reducing excessive tariffs, and eliminating discriminatory measures and other impediments to increased exports of United States goods and services, especially United States agricultural products. Further, increased efforts shall be made to urge foreign countries to extend more liberal treatment to their nationals in order to encourage travel by them in the United States in the same way that the United States has encouraged travel abroad by United States citizens, including significant duty-free allowances for returning tourists.

(c) Take effective steps to prohibit the purchase of foreign goods by commissaries and stores operated under the auspices of the Department of State or American Embassies, except where exceptions are made under the personal authorization of the Secretary or Under Secretary of State.

4. The Secretary of Agriculture shall: In pursuing sales under surplus disposal and other concessional programs, including barter, make an increased effort to insure that such sales do not reduce cash dollar sales of United States products.

5. The Board of Directors of the Development Loan Fund as an agency providing foreign development loans with public funds shall:

Vigorously pursue the Development Loan Fund policy of October 1959 of placing primary emphasis on financing goods and services of United States origin. To the end of reducing other financing to the lowest possible figure a ceiling should be placed on Development Loan Fund operations which do not finance direct procurement of United States goods and services, and efforts shall be made to minimize the balance of payments effect on these operations.

6. The heads of all Departments and Agencies which have personnel stationed abroad shall take all measures to make reductions in personnel and dependents stationed abroad when such reduction can be accomplished without impairing the fulfillment of essential United States policy objectives. Similarly, all Departments and Agencies engaging in procurement abroad shall review their operations with a view to taking steps whereever feasible to reduce such procurement.

7. Each officer referred to above and each Department and Agency head to

whom paragraph 6 above applies shall submit reports to me not later than December 15, 1960, specifying the steps taken to comply with the directives set forth herein. In addition, the abovenamed officers and such others as are appropriate shall meet to consider the balance of payments position and to

determine whether additional measures should be taken; such meetings to be continued under the Chairmanship of the Secretary of the Treasury and within the framework of the National Advisory Council on International Monetary and Financial Problems.

DWIGHT D. EISENHOWER

Transfer Plan

Transmitted by the President and delivered to the Congress January 14, 1960, pursuant to the provisions of section 302 of the National Aeronautics and Space Act of 1958 (72 Stat. 433)1 MAKING CERTAIN TRANSFERS FROM THE DEPARTMENT OF DEFENSE TO THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

SECTION 1. Those functions (including powers, duties, activities, and parts of functions) of the Department of Defense, or of any officer or organizational entity thereof, relating to the development of space vehicle systems (excluding ballistic missiles) and research connected therewith, which are being performed by the Army Ballistic Missile Agency of the Department of the Army, or by any officer or organizational entity of the said Agency, are transferred to the National Aeronautics and Space Administration.

SEC. 2. (a) The following shall be transferred to the National Aeronautics and Space Administration, pursuant to authority conferred by the provisions of section 302(a) of the National Aeronautics and Space Act of 1958 and other applicable authority, at such time or times as may be appropriate:

(1) So much of the unexpended balances of appropriations, allocations, and other funds of the Department of Defense, available or to be made available, as the Director of the Bureau of the Budget shall determine to relate to the functions transferred by the provisions of section 1 of this transfer plan and to be needed by the National Aeronautics

1 Effective March 15, 1960, pursuant to section 302(c), National Aeronautics and Space Act of 1958 (72 Stat. 433; 42 U.S.C. 2453 (c)). Published pursuant to section 3 of the Plan.

and Space Administration in connection with those functions.

(2) To the extent needed by the National Aeronautics and Space Administration in connection with the aforesaid transferred functions, (i) civilian personnel employed in the Development Operations Division of the Army Ballistic Missile Agency, and other civilian personnel employed in the Department of the Army for administrative and technical support of the Development Operations Division, together with their respective positions, and (ii) records and property of the Department of Defense (including those of any organizational entity of the Department of Defense) relating to the said transferred functions. The Secretary of Defense and the Administrator of the National Aeronautics and Space Administration, jointly, or, to any extent that they shall fail to agree, the Director of the Bureau of the Budget, shall (A) determine the number of employees to be so transferred and the identity of the particular employees who are to be transferred, (B) designate the specific records and property to be transferred, and (C) fix the date or dates of these transfers.

(b) Without limiting the foregoing provisions of this transfer plan, the functions transferred to the National Aeronautics and Space Administration by the provisions of section 1 of this transfer plan shall include so much of the functions of the Department of Defense, or of any officer or organizational entity thereof, as relate to the appointment and pay of civilian personnel employed in the Development Operations Division of the Army Ballistic Missile Agency, including authority to continue certain transferred positions in grades 16, 17, and 18 of the General Schedule of the Classification Act of 1949, as amended, pursuant to the provisions of section 1 of Public Law 86-377, and authority to continue certain transferred positions

requiring the services of specially qualified scientists or professional personnel pursuant to the provisions of section 2 of Public Law 86-377.

(c) Such further measures and dispositions as the Director of the Bureau of the Budget shall deem to be necessary in order to effectuate transfers under the foregoing provisions of this section shall be carried out in such manner as he shall direct and by such agencies as he shall designate.

SEC. 3. The provisions of this transfer plan shall become effective upon the expiration of the first period of sixty calendar days of regular session of the Congress following the date stated in the heading hereof unless the Congress has during that period adopted a concurrent resolution stating that Congress does not favor this transfer plan. Thereafter, as promptly as may be, this transfer plan shall be published in the FEDERAL REGISTER.

Letter of February 8, 1960
[PURSUANT TO PROCLAMATION
FURTHER AMENDING PROCLAMA-
TION NO. 3160,1 RELATING TO
CERTAIN WOOLEN TEXTILES]

THE WHITE HOUSE,
Washington, February 8, 1960.

DEAR MR. SECRETARY:

Proclamation 3160 of September 28, 1956, as amended by proclamations 3225, 3285, and 3317 of March 7, 1958, April 21, 1959, and September 24, 1959, respectively, provides for the increase of the ad valorem part of the duty in the case of any of the fabrics described in item 1108 or item 1109 (a) in Part I of Schedule XX to the General Agreement on Tariffs and Trade (Geneva-1947) or in item 1109 (a) in Part I of that Schedule (Torquay1951) entered, or withdrawn from warehouse, for consumption in any calendar year following December 31, 1958, in excess of a quantity to be notified by the President to the Secretary of the Treasury.

Pursuant to Paragraph 1 of that proclamation, as amended, I hereby notify you that for the calendar year 1960 the quantity of such fabrics on imports in excess of which the ad valorem part of the rate will be increased as provided for in the seventh recital of that proclamation, as amended, shall be 13,500,000 pounds.

On the basis of presently available information, I find this quantity to be not less than five per centum of the average annual production in the United States during the three immediately preceding calendar years of fabrics similar to such fabrics. Although it is believed that any future adjustments in statistics will not 13 CFR, 1956 Supp.; 21 F.R. 7593.

be such as to alter this finding, in the event that they do, I shall notify you as to the revised quantity figure. Sincerely,

DWIGHT D. EISENHOWER The Honorable ROBERT B. ANDERSON, Secretary of the Treasury, Washington, D.C.

Letter of November 16, 1960
[TERMINATION OF SUSPENSION OF

CERTAIN IMPORTS FROM POLAND
AND AREAS UNDER PROVISIONAL
ADMINISTRATION OF POLAND]
THE WHITE HOUSE,
Washington, November 16, 1960.

DEAR MR. SECRETARY:

I refer you to Part I of Proclamation No. 2935 of August 1, 19511 carrying out sections 5 and 11 of the Trade Agreements Extension Act of 19512 and to the first paragraph of the President's letter of January 17, 1953 to the Secretary of the Treasury.3

I hereby notify you that the suspension there provided shall cease to be applicable to imports from Poland and areas under the provisional administration of Poland which are entered, or withdrawn from warehouse, for consumption on and after December 16, 1960. Sincerely,

DWIGHT D. EISENHOWER THE HONORABLE ROBERT B. ANDERSON, The Secretary of the Treasury.

165 Stat. C25; 19 U.S.C. p. 3595; 3 CFR, 1949-1953 Comp., p. 121.

2 65 Stat. 73, 75; 19 U.S.C. 1362, 1367. 318 F.R. 593; 3 CFR, 1949-1953 Comp., p. 1051.