Editing C. Douglas Dillon (section)

==Secretary of the Treasury==
{{Further|Presidency of John F. Kennedy}}
In 1961, [[John F. Kennedy]], appointed [[Republican Party (United States)|Republican]] Dillon [[United States Secretary of the Treasury|Treasury Secretary]]. Dillon remained Treasury Secretary under President [[Lyndon B. Johnson]] until 1965.
According to Richard Dean Burns and Joseph M. Siracusa, Dillon's leadership of the economic policy team, exerted significant conservative influence on the overall direction of the administration. He effectively convinced the president that the nation's main economic challenge was the balance of payments deficit, leading to the adoption of a moderate approach and the dismissal of more radical liberal solutions to domestic issues. President Kennedy's choice of Dillon as Secretary of the Treasury reflected a deep concern about the balance of payments deficit and the resulting "gold drain." By choosing Dillon, a Wall Street figure with strong Republican connections and a reputation for advocating sound monetary policies, Kennedy aimed to reassure the financial community, which was apprehensive about the potential loose monetary policies of the incoming Democratic administration. According to Theodore Sorensen, the president's choice was primarily influenced by the need to maintain global confidence in the dollar and prevent a massive conversion of dollars into gold. Kennedy shared Dillon's moderately conservative economic perspectives at the time of his appointment, and Dillon enjoyed close access to the president throughout his presidency. He was one of the few political associates who socialized with Kennedy as well.

The emphasis placed by Kennedy and Dillon on addressing the balance of payments issue had a substantial impact on the administration's overall economic policy, steering it toward conservatism. The growing annual deficits in dollar payments had led to a significant accumulation of dollars in the hands of foreign banks and governments. The recurring loss of confidence in the value of the dollar prompted foreign holders to exchange their dollars for American gold, which had a fixed value relative to the dollar. This "gold drain" raised concerns within the financial community and remained a prominent issue during both the Kennedy and Johnson administrations. In an effort to stabilize the status of the dollar and halt the outflow of gold, the Kennedy administration avoided economic measures that could potentially increase inflation and undermine foreign confidence in the dollar. During the initial years of Kennedy's presidency, Dillon's success in prioritizing the payments deficit prevented more aggressive fiscal and monetary interventions in the economy or increased spending on social programs.<ref>Richard Dean Burns and Joseph M. Siracusa, ''Historical Dictionary of the Kennedy-Johnson Era'' ( Rowman & Littlefield, 2015) pp. 118-119.</ref>

On tariff policy, Dillon proposed the fifth round of tariff negotiations under the [[General Agreement on Tariffs and Trade]] (GATT), conducted in Geneva 1960–1962; it came to be called the "Dillon Round" and led to substantial tariff reduction. Dillon was important in securing presidential power for reciprocal tariff reductions under the [[Trade Expansion Act]] of 1962. He also played a role in crafting the [[Revenue Act of 1962]], which established a 7 percent [[investment credit]] to spur industrial growth. He supervised revision of [[depreciation]] rules to benefit corporate investment.
<!--In his years as the secretary of Treasury, Mr. Dillon played a key part in drawing up the Trade Expansion Act of 1962, which empowered Mr. Kennedy to cut tariffs by half in the course of reciprocal negotiations. As secretary, Mr. Dillon was also instrumental in framing the Revenue Act of 1962, which mandated a 7 percent investment credit that was meant to spur industrial plant and equipment investment. He oversaw the revising and liberalizing of principles for the companies' handling of depreciation charges. -->
[[File:C. Douglas Dillon with Kennedy.jpg|thumb|left|Dillon and Kennedy in August 1961. Dillon had just returned from the conference in [[Uruguay]] in which the [[Alliance for Progress]] was formalized, and where Dillon had discussions with [[Che Guevara]].<ref>{{cite book|last1=Rabe|first1=Stephen G.|author-link=Stephen G. Rabe|title=The Most Dangerous Area in the World: John F. Kennedy Confronts Communist Revolution in Latin America|date=1999|publisher=University of North Carolina press|location=Chapel Hill|isbn=080784764X|pages=[https://books.google.com/books?id=hVhuAwAAQBAJ&pg=PA30 30–32]}}</ref>]]

Dillon supervised the development of a reform package. He made a case before Congress to withhold taxes on interest and dividend income. The goal was to combat widespread tax evasion. Additionally, he advocated for the closure of loopholes utilized by foreign "tax haven" corporations and businessmen who deducted entertainment expenses. Although Congress rejected most of the administration's reform program during the summer of 1962, Dillon nevertheless endorsed the final package because it included a 7 percent investment tax credit.<ref name="Siracusa, 2015 pp. 118-119">Burns and Siracusa, ''Historical Dictionary of the Kennedy-Johnson Era'' (2015) pp. 118-119.</ref>

Kennedy also made use of Dillon's diplomatic skills. He was made the leader of the American delegation dispatched to Punta del Este, Uruguay, in August 1961 to commence the [[Alliance for Progress]]. Dillon committed the U.S. to provide $20 billion in low-interest loans over the next decade to enhance the living conditions in Latin America. He endorsed the "revolution of rising expectations" and aimed to convert it into a "revolution of rising satisfactions." Additionally, Dillon served on the National Security Council and actively participated in the intense discussions surrounding the [[Cuban Missile Crisis]] in October 1962.<ref name="Siracusa, 2015 pp. 118-119"/><ref>C. Douglas  Dillon, "Alliance for Progress, A Program for the Peoples of the Americas." ''The Department of State Bulletin'' 45 (1961): 355-360.</ref>