Created: 4/20/1954

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Dear kr- DuIImi

Eere Is tho draft memorandua to tho Seoretory of Statoorld Eoonocio Plan, which Hr. Jaokeon diioueaed with you In Washington.

It will form tho bails for dlaouaalonropoeed Prinooton mooting elmilar to tho ono you attended2 on tha oubjeot of poyohologioal warfare.


Allen H.0 B. Street ll.H. Washington. D. C.

. o


After fourteen months in Washington,pecie! portfolio in what is known as the "coldt was only naturalhould return to private life with certain ideas as to our assets and liabilities, our successes and failure, and our unfilled needs in this field.

The free world and its leader, the United States, is under one aerious handicap, about whioh very little oan be done at this late date. That is, that Communism and the Soviets have monopolized, andery subtle way mado their own, most of the benign words.

At the Berlin Conference, you will recall that kblotov never referred to the East German regime, or the Chinese Communist reginie, or the puppet regimes of any of the satellites, without the adjectival prefix "demooratlo and peace-loving". Theirs ispeace" dove. Theythe sponsorshole variety of "peaoe" petitions and campaigns.

Millions of people throughout the world know that these are Soviet absurditiesSoviet liea. And yet very subtly, through the endless repetition of these words and slogans, some part of what they want to convey does rub off onto the subconsciousness of these same millions of

ii'a on our side hftvo had to make an unwilling contribution to this

Soviot propaganda- Because Soviet expansion had gone so far and gathered

. i

eo much momentum before we wore willing to rooognlie tho full gravity of



the Soviet threat, our reaction had to bo awilitary reaction, either active as in Korea, or defensive aa in NATO and EDC and our wide-rangingaiefanoe program*.


"hue, while the Soviets were oapltalising on the repetition of the eymbola of peace when, aotually waging war. we were forced to capitalise on the aynbols of war while aotually trying to preserve tho peaoe.

One result of thla military emphasis on our part has boon that almoot all of our long-term planning haa boon loog-term military planning, with short-term eoonomio planning thrown in when, as, and if. on't think It ia an exaggeration to aay that the Btruoture of our free world alliance is ln grave danger of bogging down, own militarily* because we do not reallyong-term eoonomio polloy, outside of financial shoring up of military requirements*

I know that this la no new thought to you,anted to state it

eal that therearticular urgency to this thought right

now. The realization of thla partloular vaouum In our leadorehip haa

suddenly begun to gain tremendbua momentum abroad, end if the realization

is allowed to progress for many more months, we will be making the temptation

of Rueelan eoonomio and trade blandishments almost Irresletible not only

to many of our precariously balanced friends, hut even to acme of our


very good frleoca.

Finally, thoomb developments haveeal Intellectual and emotional oriel* throughout the world, and including our own ooantry. The ourse wBa almoot offombwhioh was juat about to be aooepted as the newestponwhenomb wont off, and poople'aaid to thamaelvee, "This ono wo oanuot live withj there must be some ether way."

That "other way" we have not yet shown ths world. And that Is tbe purpooo of thla manor end inn.

For many years, wa haveeaceful weapon which we attempted to use and on whioh we spent billionsnaaely, eoonomlo relief and reoonstruotlon.

The Marshall Plan (ECA)tupendous undertaking in terns of billions of dollars. Its suooeaaorsMSA and now FQA and TCAare tremendous undertakings*

Tha Marshall Flaneriod (noteo not say brief period, although it aotually was all too brief) captured world imagination. It la traglo that this impact was lost to suoh an extent that both here and abroad thereot of people, many of them sinoere, who consider that eoonomlo effort ofailure.

Volumes oould be written about the reasons why this is so. Let me try to state it in an oversimplification)Exoopt for the Governments and industrial leaders involved, the beneficiaries at the end of the line, millions of people all over the world, never did and still do noteither what we did* or why wa did it.

Most rooently, the President made another effort in the dirootion of world eoonoaio policy through the Randall Commlselon and his Meaaage to tho Congress on foreign eoonomlo policy. This was progress, but not suffioient to solve the problem, for two reasons.

In the first plaoe, beoauae of the oouposition of tho Commission, its oonolueions, though bolder than many previous attempts, nevertheless hod to be politicallynd therefore what finally went to the Congress wasairly low common denominator*

In the aeoond plaoe, the terms of reference of tha Commission were suah that all they could address thamnelves toeview of subjeots

whioh had already been reviewed and argued about many times before subjects which did not have either tho novelty or tho drama to capture popular imagination both here and abroad inay aa to start the kind of popular ground swell whioh ao often brings about Important and doolsive political moves,

to.at the United States needs, in the development of its foreign policy, in its suooessful counter to Soviot expansion, in its determination to roll back Commtaiam by peaceful means,old, imaginative plan embracing not just ono, but all* of the possible elemente involved.

Tbo essential element oforld Eoonomio Plan is that it will work. It must contain things to be donethings that can be done. Wo have bad tona of theory, but hardly more than ounces of aotion. orld Economic Plan is developed on this basis, it will then havedramatlo appeal to be understood by people everywhere. And if people want it, governments will wont it.

The free world possesses the raw materials to developlan. Toewfood, trade, aurrenoy, atomio power, people.he problem Is to oonslder them together rather than separately, to plaoe eaoh In the best oontext where it will do the moat good, and to state It all lnay that ell con understand and all oon take heart.

To doveloplan exclusively within Government le, with rare exceptions, almost impossible. Tbe intelleotual, emotional, and polltloal limitations are such that men In Government, even of the best will, tend to water down their ideas, work out inter-departmental compromisea, and

look over theirt Congress, with the result that their end product ia already wall diluted. By tha time it emerges frca the politioal lioppor most of tha imaginative Juice has boon aqueeied out of it.

What ls neadedaall group of men, soma from Government (but representing themselves and not theirntelleotually oapable of grasping the problemen of bold imaginationto eit down togethereekend away from Washington and to roam tha far reaches of tha ideaorld Eoonomlo Flan.

The details of what might be dono already exist in many minds and In innumarabla studies, memos, and reports. What it Deeded ls not another report, but an Imaginative synthesis of auch that already exists, to whioh should bearge number of aotlon itamfl whioh up to now fcshington has either shied away from or which hava baooate lost in the mass of papers.

Reooianendatlons should be made without regard to their politioal or legislative feasibility. Those oheoka and balances will have plenty of opportunity to exert themselves, but thay should be exertadaximum ratherinimum proposition.

It ia to ba hoped that the President would see in the World1 Eoonomlo Plan tha aotlon fulfillment of his April and Deoember speeohas, and that aometima 'this fall* preferably ln September, he oould present the Idealorid Eoonomlo Flan to the United States and the world. .

I am confident thatorld Eoonomlo Plan contains those ingredients which will unmistakably add to the welfare and prosperity of this country and of the free world* the fact that the grass is indeed greener on freedom's side of the fence will oenes to be merely an American statement, andeality.

Original document.

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