Evening star. [volume] (Washington, D.C.) 1854-1972, 1960-11-17

able outflows of gold and in
creases in our dollar liabilities.
A substantial part of our def
cit has been settled in gold, re-
sulting in a decline Of about
$4.5 billion in the Treasury gold
stock since the end of 1857.
Necessary Steps
I'VE must take steps
in the sphere Of United
States governmental activ-
ity that will Immediately
contribute to reducing the def
cit in our international pay
ments. In addition, we need
to carry on and intensity those
governmental policies whic h
will contribute to this objective
over a longer period, including
the following:
l. In the field of international
trade. we must:
(a) Continue to press other
countries urgently. and par
tlcularly those that are econom-
ically and financially strong,
to reduce tariffs. relax quotas
and remove trade restrictions
that hamper United States ex-
ports, and also urge these
countries to reduce or elimi-
nate internal taxes and other
measures that have a special
impact in curtailing their .pur-
chases Of United States goods
and services.
CD Continue to take all
reasonable means to increase
our exports. including facili-
tating the financing of exports
where this is needed to increase
our sales both on consumer
goods and capital goods.
2. In the field Of international
finance, we must:
ca Insist that our friends
and allies accept their full
share of the costs of maintain
ing the security of the free
world.
CD Continue urgently to in
siSt that the other economically
advanced countries of the free
world increase their share of
the long-term, truly develop
mental type of financing ex-
tended to the developing coun-
tries.
Co Urge international in
situations to use as fully as pos
sible currencies other than dol
lars available to them, when
ever and wherever possible. =.
Administrative Action
While these and other pol
icies and procedures are under
going critical examination,
there are certain measures
which, I believe, can and should
be taken now by administrative
action and, accordingly, d.
rect the following:
l. Without diminishing our ef-
fective military strength and
recognizing that the actions
below may involve a budget
airy adjustment, the Secre-
=! tary 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 100000 at any one time,
which total shall be subject to
annual review by the Presi-
dent.
ID Take promptly all pos
sible steps to reduce by a very
substantial amount the expen-
dltures. from funds appropri-
ated to The military services
and for the military assistance
program. that are planned for
procurement abroad during cal
endar year 1861. by establish
ing a minimum amount by
which such procurement shall
be reduced.
(c) Prohibit the purchase of
foreign goods by the non-appro-
priated fund activities related
to the military services, except
where exceptions to this pro-
hlbltion are made under the
personal authorization of the
Secretary or Deputy Secretary
of Defense.
Treasury Action
2. The Secretary of the Treas
ury shall:
Take for the United States
Coast Guard the same measures
as set forth under section /.
(a), 90 and Co above.
3. The Secretary of State shall:
(a) Instruct the director of
the International Co-opera-
ton Administration, a United
States foreign aid agency uti-
lizing 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.
(o) Together with the other
agencies concerned, review the
area of United States trade
relations and negotiations with
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 cur
rent tariff negotiations and as
surfing that these concessions as
well as previous concessions
granted to the United States
are made fully effective to the
benefit of American export.
| Further. increased efforts
shall be made to urge foreign
countries to extend more lih-