July 25, 1949
MEMORANDUM OF TELEPHONE CONVERSATION
Participants: Mr. Pace Secretary Acheson
I telephoned Mr. Pace, Director of the Budget, today and told him that Senator Lucas had mentioned to me that he thought the President had been talking with the leaders about what he intended to do about setting ceilings on the budget. Senator Lucas thought that if it were known that the suggestion of setting ceilings might come from a Republican. If the President then later announced such a course, the Republicans would claim they drove him to it. I asked Mr. Pace whether he knew what the President had in mind as to time of the announcement.
Mr. pace said he would give this suggestion consideration. He had some doubts as to the wisdom of the matter, since he thought the President was of the opinion that the Departments could operate more effectively if there were not public release of such ceilings. This was a matter of expediency and might not weigh too heavily in the consideration of the matter from the point of view of possibly strengthening the MAP. He said he thought the President had planned to make the announcement about September 15, when Congress was not in session and when the matter could be removed from the realm of political expediency. I said I was not of any firm opinion about the matter; that I could see that you might make this move and not have it accomplish anything; that I was merely passing on to him for thought what Senator Lucas had said to me. Mr. Pace said he thought that sometimes those on the Hill saw the immediate problem and did not see the long range aspect.
I said there was no rush about the matter. I thought perhaps if we got into consideration of the bill and found we were taking a terrible beating, we may have to change our course. Mr. Pace said that while he realized that such public matters sustain themselves only if they have public opinion behind them and that Congress itself often does a great deal to crystallize public opinion, he thought that the bill had public support.
DAcheson
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