December 22, 1949
NOTES ON CABINET MEETING
The cabinet meeting this morning was a long one lasting two hours and devoted to consideration of the attached paper entitled "Major Legislative Proposals for Second Session of the 81st Congress."
So far as the Department's program is concerned, the only matter which raised any discussion was the statement by me regarding "New Proposals for extensions of existing authority" (on page 2) of the Dollar Gap problem. I gave an outline of the situation to the President and said that we were working on the matter with ECA and would shortly bring into consultation with us the National Military Establishment and the Departments of Agriculture and Commerce. The President stated that the problem was one which had been worrying him and he was very glad that the problem was going to receive thorough and prompt attention. The few remarks on this subject by Secretary Sawyer raised the question of expense as related to the attempt to balance the budget and cut down domestic expenditures.
The only other matter which I can recall which would be of immediate interest to the Department was the discussion of Section 5 of the Act to approve the St. Lawrence Seaway and Power Project. This is the section which authorizes the transfer of the operation of the power system when completed to the State of New York. The Secretary of Interior voiced opposition to this, as did the Secretary of Labor and the Attorney General. They pointed out that this was the last or one of the last great natural power resources and that if New England was to be excluded from the power benefits, that would probably tip the scales of opposition already strong against the project. The Secretary of Interior is considering some modification of the language which would require New York to share some of the power with New England.
It was also decided that the Cabinet would meet next Friday at ten o'clock at which time those present would be given copies of the then draft of the State of the Union message which will be read aloud and discussed for suggestions. I asked whether it would be possible to have copies in advance and it appeared that that would not be possible. It seems likely that the next Cabinet meeting will last probably two hours or more.
D.A.
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