Presidential Papers, Doc#1399 To Charles Erwin Wilson, 12 April 1955. In The Papers of Dwight David Eisenhower

Document #1399; April 12, 1955
To Charles Erwin Wilson
Series: EM, AWF, Administration Series

The Papers of Dwight David Eisenhower, Volume XVI - The Presidency: The Middle Way
Part VII: "Nothing could be worse than global war"; January 1955 to May 1955
Chapter 15: Searching "for an honorable peace"

 

Memorandum for the Secretary of Defense:

Subject: Automotive and Related Procurement.

This refers to your March fourteenth informal report to me on progess in achieving an effective spread of governmental procurement in the automotive and related fields, so as to include continuing programs of work for the smaller, as well as the larger, companies.1 As you know, I am interested in this for several reasons:

(a) I intend to do all in my power to see that no action of the government creates a tendency toward a monopoly;

(b) I want to help in the preservation of a mobilization base dispersed among different companies and business leaders, as well as geographically; and

(c) I want to see smaller companies on a comparative footing with others in the conviction that competition between big and little, as well as between the giants themselves, will certainly result to the benefit of our entire economy and of our people.

I am today leaving the city for a week.2 During my absence, will you please have prepared another brief progress report on what results have been achieved by the Defense Department in spreading this type of work, whether such spread is accomplished on a direct or on a sub-contracting basis.

I do not desire that a staff consume a lot of time in preparing a report in unnecessary detail. I want to know the certainty and magnitude of progress and to have the assurance that this matter is constantly engaging the attention of responsible officials. If such a report could be sent to my office by the twenty-first, that would be early enough.3

1 See no. 1329 for background. Eisenhower had originally begun this letter: "Several times I have talked to you informally about the very great desirability of an effective spread. . . ." This and other handwritten changes appear on a draft message (April 12) in AWF/Drafts.

2 After receiving an honorary degree at The Citadel in Charleston, South Carolina, on this same day, Eisenhower would spend the next eight days in Augusta.

3 On April 25 Staff Secretary Andrew Goodpaster would respond to Ann Whitman's query regarding the report, which had not been received. "The people working on it decided about the middle of last week that they couldn't give a valid report on the 21st, and would simply delay submission until they could do better--but didn't inform Mr. Wilson's office," Goodpaster wrote. "They tell me they can and will have a report by noon on April 29, and I set that time--subject to decision by you or the President otherwise--as a `firm' date for its submission" (Goodpaster to Whitman, Apr. 25, 1955, AWF/A, Wilson Corr.).

Wilson would agree that procurement policies "should avoid the creation or establishment of a tendency toward monopoly," and elements of the mobilization base should be dispersed "among different management groups . . . in the American business community." He told Eisenhower that he and his staff had participated in several meetings with the service secretaries and had emphasized these principles as well as "the importance of giving special consideration to companies smaller than those included in the categories of the larger business enterprises within the automobile industry. . . ." Wilson's report included detailed statements from the Army, Navy, and Air Force regarding their procurement proposals, particularly those that involved the smaller automotive companies. He assured Eisenhower that his principles would "continue to be emphasized to all of the military services" and would constantly be "brought to the attention of the Procurement Secretaries both in the Department of Defense and in the Military Departments" (Wilson to Eisenhower, Apr. 28, 1955, AWF/A).

Thanking Wilson for the report, Eisenhower would tell the Defense Secretary that he understood the difficulties involved and was appreciative of the efforts Wilson was making (Eisenhower to Wilson, Apr. 29, 1955, AWF/A).

Bibliographic reference to this document:
Eisenhower, Dwight D. To Charles Erwin Wilson, 12 April 1955. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 1399. 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/1399.cfm

 


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