Mutual Security Act
Encyclopedia
The Mutual Security Act of 1951 is a United States federal law, signed on October 10, 1951 by President Harry S. Truman, which authorized nearly $7.5 billion for foreign military, economic, and technical foreign aid to American allies; the aid was aimed primarily at shoring up Western Europe, as the Cold War
developed. The Act also abolished the Economic Cooperation Administration, which had managed the Marshall Plan
and transferred its functions to the newly established Mutual Security Agency (MSA). The Agency was established and continued by acts of October 10, 1951 (65 Stat. 373) and June 20, 1952 (66 Stat. 141) to provide military, economic, and technical assistance to friendly nations in the interest of international peace and security, but was abolished by Reorganization Plan No. 7 of 1953, effective August 1, 1953, and its functions were transferred to the Foreign Operations Administration
. The act however, was extended by appropriators each fiscal year until the early 1960s.
As the Marshall Plan was ending, Congress was in the process of piecing together a new foreign aid proposal designed to unite military and economic programs with technical assistance. In the words of Secretary of State Dean Acheson, who testified before Congress, Western Europe needed assistance against Soviet “encroachment.” The measure was intended to signal Washington’s resolve to allies and to the Kremlin that the United States was capable of and committed to containing communism globally, even while it fought a protracted land war in Korea. The measure took about two months to work its way through the House, meeting resistance from fiscal conservatives along the way. Republicans were divided about the cost of the expenditures; nevertheless nearly half (80) joined the overwhelming majority of Democrats to pass the measure 260 to 101 on August 17. John M. Vorys
of Ohio summed up GOP support for the measure, noting that military aid to “nations who will fight on our side” is “sound economy.” Representative James P. Richards
of South Carolina, chairman of the Foreign Affairs Committee, noted that the Mutual Security Act was intended “not to fight a war” but “to prevent a war.”
and the Economic Cooperation Act of 1949, which administered the Marshall plan. It became law on 10 October 1951, and created a new, independent agency, the Mutual Security Administration, to supervise all foreign aid programs including military assistance and economic programs that bolstered the defense capability of U.S. allies globally.
Submitted on 24 May 1951, President Harry S. Truman
's omnibus foreign aid bill got a hostile reception on Capitol Hill. Rapid expansion of national security expenditures during the Korean War
had produced alarm over high taxes, large deficits, government controls, and a possible “garrison state” among such prominent conservatives as Senator Robert Taft
(R‐Ohio). Truman's decision to send U.S. troops to Europe as part of a standing NATO force further antagonized congressional conservatives and exacerbated their fears that European nations were not doing enough for their own defense. Congress thus reduced the administration's request for Mutual Security funds by 15 percent and authorized $5.998 billion and $1.486 billion, respectively, for military and economic assistance. The deepest cuts were in economic aid, thus ensuring its subordination to military assistance as “defense support.”
The Mutual Security Act was renewed each year until 1961, and it annually produced struggles over the size of the foreign aid budget, and the balance between military and economic aid. The US foreign aid program was then reorganized under new Kennedy Administration legislation, with signing of the Foreign Assistance Act
and Executive Order 10973 on 3 November 1961, which established the United States Agency for International Development
(USAID).
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
developed. The Act also abolished the Economic Cooperation Administration, which had managed the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...
and transferred its functions to the newly established Mutual Security Agency (MSA). The Agency was established and continued by acts of October 10, 1951 (65 Stat. 373) and June 20, 1952 (66 Stat. 141) to provide military, economic, and technical assistance to friendly nations in the interest of international peace and security, but was abolished by Reorganization Plan No. 7 of 1953, effective August 1, 1953, and its functions were transferred to the Foreign Operations Administration
United States Foreign Operations Administration
The Foreign Operations Administration was created in 1953 under the directorship of Harold Stassen. Its purpose was "was intended to centralize all governmental operations, as distinguished from policy formulation, that had as their purpose the cooperative development of economic and military...
. The act however, was extended by appropriators each fiscal year until the early 1960s.
As the Marshall Plan was ending, Congress was in the process of piecing together a new foreign aid proposal designed to unite military and economic programs with technical assistance. In the words of Secretary of State Dean Acheson, who testified before Congress, Western Europe needed assistance against Soviet “encroachment.” The measure was intended to signal Washington’s resolve to allies and to the Kremlin that the United States was capable of and committed to containing communism globally, even while it fought a protracted land war in Korea. The measure took about two months to work its way through the House, meeting resistance from fiscal conservatives along the way. Republicans were divided about the cost of the expenditures; nevertheless nearly half (80) joined the overwhelming majority of Democrats to pass the measure 260 to 101 on August 17. John M. Vorys
John M. Vorys
John Martin Vorys was a U.S. Representative from Ohio.-Early life:Born in Lancaster, Ohio, Vorys attended the public schools in Lancaster and Columbus, Ohio. During the First World War served overseas as a pilot in the famous "Yale Unit" of the United States Naval Air Service, retiring to...
of Ohio summed up GOP support for the measure, noting that military aid to “nations who will fight on our side” is “sound economy.” Representative James P. Richards
James P. Richards
James Prioleau "Dick" Richards was a lawyer, judge, and Democrat U.S. Representative from South Carolina between 1933 and 1957. He later served as a special ambassador under Republican President Eisenhower....
of South Carolina, chairman of the Foreign Affairs Committee, noted that the Mutual Security Act was intended “not to fight a war” but “to prevent a war.”
Background and follow-on
Mutual Security Act of 1951 was the successor to the Mutual Defense Assistance ActMutual Defense Assistance Act
The Mutual Defense Assistance Act was a United States Act of Congress signed by President Harry S. Truman on 6 October 1949. For US Foreign policy, it was the first U.S. military foreign aid legislation of the Cold War era, and initially to Europe...
and the Economic Cooperation Act of 1949, which administered the Marshall plan. It became law on 10 October 1951, and created a new, independent agency, the Mutual Security Administration, to supervise all foreign aid programs including military assistance and economic programs that bolstered the defense capability of U.S. allies globally.
Submitted on 24 May 1951, President Harry S. Truman
Harry S. Truman
Harry S. Truman was the 33rd President of the United States . As President Franklin D. Roosevelt's third vice president and the 34th Vice President of the United States , he succeeded to the presidency on April 12, 1945, when President Roosevelt died less than three months after beginning his...
's omnibus foreign aid bill got a hostile reception on Capitol Hill. Rapid expansion of national security expenditures during the Korean War
Korean War
The Korean War was a conventional war between South Korea, supported by the United Nations, and North Korea, supported by the People's Republic of China , with military material aid from the Soviet Union...
had produced alarm over high taxes, large deficits, government controls, and a possible “garrison state” among such prominent conservatives as Senator Robert Taft
Robert Taft
Robert Alphonso Taft , of the Taft political family of Cincinnati, was a Republican United States Senator and a prominent conservative statesman...
(R‐Ohio). Truman's decision to send U.S. troops to Europe as part of a standing NATO force further antagonized congressional conservatives and exacerbated their fears that European nations were not doing enough for their own defense. Congress thus reduced the administration's request for Mutual Security funds by 15 percent and authorized $5.998 billion and $1.486 billion, respectively, for military and economic assistance. The deepest cuts were in economic aid, thus ensuring its subordination to military assistance as “defense support.”
The Mutual Security Act was renewed each year until 1961, and it annually produced struggles over the size of the foreign aid budget, and the balance between military and economic aid. The US foreign aid program was then reorganized under new Kennedy Administration legislation, with signing of the Foreign Assistance Act
Foreign Assistance Act
The Foreign Assistance Act is a United States Act of Congress. The Act reorganized the structure of existing U.S. foreign assistance programs, separated military from non-military aid, and created a new agency, the United States Agency for International Development to administer those...
and Executive Order 10973 on 3 November 1961, which established the United States Agency for International Development
United States Agency for International Development
The United States Agency for International Development is the United States federal government agency primarily responsible for administering civilian foreign aid. President John F. Kennedy created USAID in 1961 by executive order to implement development assistance programs in the areas...
(USAID).