Memorandum on Balance of Payments and Federal Expenditures Overseas

Memorandum for Cabinet Officers and Heads of Major Agencies

Our balance of payments requires our continuing attention and concern. We achieved a substantial improvement in the overall deficit in 1965 and we look forward to further improvement this year.

Federal overseas transactions play an important role in our balance of payments, and for the past several years we have made a great effort to minimize the adverse impact that our Federal programs might have on our balance of payments. But the requirements associated with Vietnam, both for military and for economic assistance, now demand ever greater vigilance in controlling our overseas Federal transactions.

Under the procedures which have been established to control the balance of payments impact of the Federal Government's overseas activities, you are scheduled to report by March 15 to the Bureau of the Budget on your agency's international transactions. I urge that you use this occasion to re-examine all of your overseas programs with the utmost care. Your objective should be to maximize receipts and to minimize expenditures abroad consistent with the achievement of U.S. objectives.

I have instructed the Director of the Bureau of the Budget to examine your reports carefully and to inform me promptly of the progress which is being made by each Federal agency in assisting the Nation to achieve equilibrium in its balance of payments.

LYNDON B. JOHNSON.