851.51/5–2346
Memorandum of Conversation63
| Participants: | Mr. Léon Blum |
| Ambassador Bonnet | |
| The Secretary | |
| Mr. Matthews |
Mr. Blum, accompanied by Ambassador Bonnet, called at Mr. Blum’s request to see the Secretary. They exchanged greetings and the Secretary inquired when Mr. Blum expected to return to France.
Mr. Blum said he had expected to leave today, but the negotiations were not completed, so he had postponed his departure until Saturday night,64 when he will go to New York, and then leave New York on Sunday.
The Secretary said he had talked with Mr. Clayton about the negotiations and Mr. Clayton was doing everything he could to bring about a favorable conclusion by Friday night.
Mr. Blum told the Secretary he thought it would be a good thing if the President could make a statement about the negotiations on Saturday, which would be reported in the Paris newspapers on Monday.
The Secretary said he understood one of the subjects on which work had not been completed was surplus property, and inquired what were the other subjects.
Mr. Blum replied that the real difficulty was that they have not arrived at as complete a solution as was hoped for, it does not meet completely the needs of France, and execution of the French plan for reconstruction and modernization is now [not?] assured.
The Secretary said he supposed there was usually some grounds for disappointment on the outcome of conferences, and remarked that he did not obtain “assurance of anything” at the conference he had just attended.
The Secretary told Mr. Blum of his talk with Mr. Bidault and Mr. Alphand, together with Mr. Bevin,65 about the coal situation as created by the strikes here and the desire to supply coal to France from other sources. He said he had just been advised informally by General Clay that 60,000 tons could be supplied from US military stocks and General Robertson66 hoped to obtain 100,000 from British military [Page 452] stocks for the French. In addition, Mr. Bevin was to try to obtain coal from the British home stocks, and this should come near to making up the deficiency for June. He said we hope to have strikes here settled certainly by June and then normal shipments can be resumed. He said he had advised Mr. Bidault of the information General Clay had sent him.
Mr. Blum said he wished to bring the Secretary up to date on his talk with the President. He had called on the President yesterday morning, expecting it to be only a courtesy visit, but he was led to tell the President how unfortunate it was that agreement on the financial negotiations was not as complete and satisfactory as was expected. Mr. Blum told the President it was only for material reasons and not because of bad will on the part of the American negotiators, and had insisted that perhaps during the last day efforts could be made to meet more completely the needs of the French reconstruction plan. The President was extremely helpful and had said he would get in touch with the negotiators and urge that if possible something be done to cause a more satisfactory agreement. Mr. Blum had emphasized how important it was to the French people and now he hoped that something could be done, perhaps through the intervention of the President and Secretary Byrnes, to help in that direction.
The Secretary said he had talked with Mr. Clayton who informed him that there was a difference of three to two among the members of the Board in favor of a more liberal agreement for France. He pointed out that those members were entitled to act in accord with their beliefs in the discharge of their official duties. He said that while in Paris he sent a message asking that it be settled as liberally as possible, and he felt sure Mr. Clayton had had this purpose in mind all the time.
Mr. Blum heartily agreed with the latter statement.
The Secretary said it was hard to make agreements to please all parties and that the British had been disappointed over their loan also, but, on the other hand, the State Department had been severely and publicly criticized by members of the Senate for being too liberal.
Mr. Bonnet said it was now a question of supplementing the work so as to lessen the disappointment and they still hoped something could be worked out.
Mr. Blum said they are very near agreement, but he still hopes for a more favorable agreement.
In bidding goodbye, Mr. Blum said he hoped to see the Secretary in Paris next month.