July 14, 1949
MEMORANDUM OF TELEPHONE CONVERSATION
Secretary Acheson Mr. Frank Pace, Budget Director
Mr. Pace telephoned the Secretary concerning the proposed Philippine War Damage Commission. He said the matter had been referred to him by the White House after the president approved it. He said that his people had been working on this matter with Rusk of the Department and the idea was that they would come to some agreement before it went to the President. He wondered what had happened.
The Secretary told him that Ambassador Cowen and Mr. Butterworth had come to him and he had subsequently made the recommendation to the President; that it was simply a matter of poor liaison in the Department and he would look into it. The Secretary told Mr. Pace he thought the thing to do was start back where they had gotten off the track; that he would have Dean Rusk get in touch with him about it, and in the meantime they would suspend the President's approval.
The Secretary telephoned Mr. Pace a few minutes later to inquire if Mr. Rusk, Mr. Butterworth and Ambassador Cowen could come to see him today on this problem because the Ambassador wanted to go away and the hour of 5 o'clock was set for the meeting.
L. D. B.
S:DHM