Monday, Jan. 02, 1961

The Dillon Dilemma

Hardly a man alive could reasonably expect to be a Cabinet member, come Democrat or Republican in the White House. But Republican C. Douglas Dillon looked forward to being Nixon's Secretary of State or Secretary of the Treasury. Then President-elect Kennedy asked him to become the new Administration's Treasury Secretary. Dillon wanted the job, but was in a tough spot. As Dwight Eisenhower's Under Secretary of State for Economic Affairs, he would be accused of disloyalty if he turned around and served an Administration whose campaign platform derided the "high interest, tight money" policies of his old boss.

Fortnight ago, accepting Kennedy's offer, Dillon announced that he had first cleared things with both Ike and Dick Nixon and neither objected "if we were to work toward a sound fiscal policy, which is the case." But Doug Dillon had not told the whole story. He got no encouragement at all from Nixon, and Ike twice urged Dillon not to accept without a commitment in writing from Kennedy that he would have a free hand in setting Treasury policy. Dillon answered that he had such an agreement, although not in writing, but seemed to miss the presidential point. From the tone of his warning, it was clear that Dwight Eisenhower had not wanted Dillon to serve under Jack Kennedy, and was mighty unhappy that his advice had been ignored.

At week's end, Ike had reason to be madder than ever. During a Palm Beach press conference, Jack Kennedy noted that no commitment at all had been offered to Dillon. "A President," said Kennedy, "can't enter into treaties with Cabinet members."

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