611.51/4–2753: Telegram
No. 599
The Ambassador in France (Dillon) to the
Department of State
5674. Secretary Dulles, accompanied by Dillon and MacArthur, had one hour talk with Mayer accompanied by Burin des Roziers late Sunday.1 Mayer stated that on reconvening of Assembly May 12 he would submit law for constitutional reform and revised fiscal program for 1953. He regards constitutional reform as more important of the two projects as he considers France’s difficulties to be primarily political. He hopes to get three-fifths majority so as not to require national referendum on constitutional reform but is completely confident of success in referendum if one should be necessary. Fiscal reform will consist primarily of cuts in expenditures as he feels any new taxes would be passed on in higher prices which would start an inflationary spiral. Therefore, there will be few or no raises in tax rates. He thanked Secretary for aid program outlined to French at bipartite meeting earlier in afternoon2 and expressed hope that Export-Import loan of $100 million rediscounting offshore contracts would be forthcoming by May 15 to meet EPU payment.
Secretary told him that Bourges-Maunoury had indicated that 60 million MSA grant outlined in program would be adequate to cover May 15 dollar requirements. Mayer observed that Bourges may have been over-optimistic and that requirements would not be known until early May when April EPU deficit became final.
Remainder of session devoted to German unification and general disarmament. Mayer stated the two subjects were really one. A neutralized Germany balanced between East and West would greatly increase the peril to the remainder of Western Europe. Secretary agreed but forcefully pointed out that answer was to create EDC and thus strengthen European community before negotiating with Soviets on Germany. Mayer agreed with this but asked what would we do if Soviets request a four-power meeting on Germany [Page 1358] prior to establishment of EDC. Secretary said we then should request action on first three items of President Eisenhower’s program3 namely Korean truce, Indochina peace and Austrian peace treaty before talking with Soviets on Germany.
Secretary pointed out this should give necessary time for ratification of EDC. Mayer agreed to this program but reiterated his belief that German question was inseparable from general problem of armaments and that two questions must be considered together.
Whole discussion was carried on in very cordial and frank atmosphere and resulted in useful clarification of views.
- Apr. 26. A memorandum of this conversation is in Conference files, lot 59 D 95, CF 152.↩
- For a record of the meeting, see Document 596.↩
- Reference to President Eisenhower’s program as outlined in his “Chance for Peace” speech delivered on Apr. 16; see footnote 3, Document 590.↩