751G.5 MSP/11–2354: Telegram
The United States Representative at the United Nations (Lodge) to the Department of State
priority
[Received 12:49 p.m.]
285. Repeated information Paris 1. Pass to FOA and Defense from Dillon.1 Mendes-France asked me to see him Monday evening.2 He wished to say a word about the financial discussions regarding Indochina which he understands are to be held on Wednesday.
He said that he had purposely left this subject aside during the Washington talks as French public opinion had become very allergic to the connection of aid discussions with political discussions and had developed the feeling that aid in the past had had an undue effect on political decisions.
He said that nevertheless the aid discussions would be most important. He said that he had noticed the obvious contraction in American dollar payments to France over the past months and had realized that it represented a definite policy of the US Govt. He said that he had never mentioned this slow up in France, and it was unknown to the French people. However, by the end of the year it would be necessary to give figures to the assembly committees, and he hoped the matter would be straightened out by then. He said it would make it very difficult for him if the French people thought we were using financial pressure to force French political cooperation in Indo-China.
I told him that from what I knew I was certain that he would find the 1954 settlement very fair. As to 1955 I told him that I understood [Page 2284] we were prepared to give some assistance to the FEC but that because of our own budgetary problems it would have to be considerably less than they had hoped for.
He said he was not familiar with the figures as he had purposely left all that to Faure, but that he wanted to emphasize the political importance in France of our stretching as far as we could in our 1955 support for the FEC. He said he hoped that we could continue for the French calendar year 1955 to give top priority to Indo-China in the division of our aid allotted to South East Asia. He asked me to pass these brief remarks on to the Secretary and Governor Stassen so that they would realize the importance with which he views the matter.3
- Ambassador Dillon was in New York in connection with the Ninth Session of the UN General Assembly, which had convened on Sept 23.↩
- Nov. 22.↩
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Upon his return to Paris, Ambassador Dillon transmitted telegram 2218 (Nov. 26) urging that the slowdown in the payment of Indochina aid payments be ended. Dillon contended that it was essential for the United States to support the Mendès-France government in every way pending French ratification of the Paris accords on Germany and European security (concluded on Oct. 23). (751G.5 MSP/11–2654) For extensive documentation on the Paris agreements, see volume v
In the meantime, on Nov. 24, FOA Director Stassen met at Washington with French Ambassador Bonnet and communicated to him the information that the United States intended to provide $100 million for the support of the FEC for calendar year 1955. Stassen also indicated that the programmed 1954 budget expenditures in respect to the FEC would be continued to the extent of covering that equipment which was actually sent to Indochina by the end of 1955. Bonnet stated that the $100 million figure was far below what the French had expected and was insufficient. For the memorandum of this conversation prepared by Assistant Secretary of Defense Hensel, see United States–Vietnam Relations, 1945–1967, Book 10, pp. 802–805.
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