Presidential Papers, Doc#1132 To Frank Goad Clement, 30 October 1954. In The Papers of Dwight David Eisenhower

Document #1132; October 30, 1954
To Frank Goad Clement
Series: EM, AWF, Administration Series: TVA

The Papers of Dwight David Eisenhower, Volume XV - The Presidency: The Middle Way
Part VI: Crises Abroad, Party Problems at Home; September 1954 to December 1954
Chapter 132: Asia: A "boiling kettle of possible trouble"

 

Dear Governor Clement: I just learned of your suspicions that my assistants are presuming to represent to you conclusions and even decisions that do not conform to the policies laid down by me for implementation by my staff.1 I assure you that the replies sent by Governor Adams to your inquiries concerning this Administration's immediate plans with respect to TVA are in conformity with my general thinking on the subject.2

It seems to me that all argument for the construction by the Federal Government of the additional steam plants ignores this one and very important truth: If the Federal Government assumes responsibility in perpetuity for providing the TVA area with all the power it can accept, generated by any means whatsoever, it has a similar responsibility with respect to every other area and region and corner of the United States of America.

Logically, every section of the United States should have the same opportunities, and the Federal Government should not discriminate between the several regions in helping to provide this type of facility. My own conviction is that we have not been alert enough in making certain of this equality of treatment. If this is the case, then it is high time that other regions were getting the same opportunities.3

Of course I cheerfully admit that this is an over-simplification of the case. Many secondary arguments have been advanced--some of them seem to be more confusing than clarifying in their effect. But I cannot believe that Americans, in general, disapprove of attempting to place all regions on a basis of equality in this regard. Consequently, there must either be some re-examination of any plans which would call for the Federal Government to supply all the additional power capacity that might be needed in the future in the Tennessee Valley, or logically we would have to begin plans for a gigantic power development to cover the entire nation equitably.

The directive to the AEC to make arrangements for the purchase of private power--either directly or by finding a new private source to replace available TVA power--was designed to allow time for a thorough examination of this whole vast field, without hurting the citizens of the valley.4

As a consequence of these facts, I believe that the project for building new plants at Federal expense--implying a purpose of continuing this process indefinitely in the future--is therefore wholly indefensible unless it should become part of a vast national plan. If this is to be national policy, it is most certainly a project that demands earnest and prayerful study. In the meantime the citizens of your region will not be deprived of the additional power they need for the next several years.

It seems to me that there has been a very great deal of talk and argument--much of it partisan--about issues that are really clear and simple. No one in this Administration has any intention of destroying or damaging TVA or of diminishing its effectiveness in any way.5

I appointed as TVA Chairman one of the ablest professional men in the country.6 The single directive I gave him was to use his own heart and brains--and the facts--to arrive at the recommendation he may in the future submit to me. I would not have asked him to undertake that job if I had any thought in my mind of diminishing its importance or its functions. But this is not the same thing as fastening on the Federal Government a continuing and never-ending responsibility which I frankly do not believe is logical nor, in the long run, in the best interests of the country.7

With warm personal regard, Sincerely

1 Except for the first paragraph, this letter was virtually identical to one Eisenhower would send to Joint Committee on Atomic Energy Chairman W. Sterling Cole (Rep., N.Y.) on November 10, 1954. By that date the committee was in the midst of hearings on a request by the AEC that Congress waive the thirty-day waiting period on the Dixon-Yates contract. The AEC wanted construction to begin immediately on a power plant to feed TVA needs. On November 13 the committee would grant the AEC's waiver plea (Eisenhower to Cole, AWF/A: TVA, and New York Times, Nov. 11, 14, 1954). For background see no. 985. An earlier version of this letter is in AWF/D; two other drafts, with Eisenhower's handwritten changes, are in AWF/Drafts.

2 Governor Clement had frequently written to the Administration regarding his opposition to the Dixon-Yates contract. For further documentation see the case file on the TVA-AEC controversy in WHCF/OF 51.

3 Eisenhower deleted portions of this paragraph from earlier drafts. He had originally informed Clement that he saw no reason why private industry or municipalities could not build power plants to supply the Memphis region. Because they had not, he had written, "the inescapable conclusion is that the great desire for additional Federal construction in the Tennessee Valley is because some in the region hope to get economic advantage over and above those available in other areas" (Oct. 23, 1954, AWF/Drafts). For Eisenhower's views regarding the federal construction of power sources in the Tennessee Valley region see, for example, nos. 449, 985, and his memoir, Mandate for Change, pp. 376-85.

4 For background on the AEC efforts to negotiate for additional power for the TVA system see nos. 985 and 1026.

5 On the Democrats' objections to the Administration's proposals see no. 985.

6 For background on General Herbert Vogel see nos. 815 and 909.

7 After a September 3 meeting with AEC Chairman Lewis Strauss, TVA Chairman Vogel publicly proclaimed that he and the AEC chief had had a "meeting of the minds." The conflict between the AEC and the TVA, however, would take more than one meeting to resolve. At issue was the distribution of costs between the AEC and TVA for procurement of Dixon-Yates power. For background see nos. 1017 and 1026.

While the fiscal impasse between the two agencies would continue into 1955, Democrats were unable in the fall of 1954 to stop the Joint Committee's approval of the AEC's Dixon-Yates contract. Following the November elections, which returned the Democrats to power in Congress, lame-duck Republicans approved the AEC's requested waiver so that plant construction could begin (Wildavsky, Dixon-Yates, pp. 144-46, 152-60; Public Papers of the Presidents: Eisenhower, 1954, p. 968). For developments see no. 1515.

The SEC would hold hearings on the financing of the Dixon-Yates combine, the Mississippi Valley Generating Company, in December, offering Democrats yet another opportunity to try to kill the proposal (New York Times, Dec. 12, 1954). For developments see no. 1206.

Bibliographic reference to this document:
Eisenhower, Dwight D. To Frank Goad Clement, 30 October 1954. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 1132. World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition; Baltimore, MD: The Johns Hopkins University Press, 1996, http://www.eisenhowermemorial.org/presidential-papers/first-term/documents/1132.cfm

 


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