Office of the Historian

840.50 Recovery/12–1247

The National Security Resources Board to President Truman

confidential
[Washington,] December 4, 1947.

A Recommendation to the President From the National Security Resources Board on the European Recovery Program

1.
The objectives of the European Recovery Program are of such importance that they must be achieved by every means possible short of seriously depleting our own natural resources.1 Strategic and critical materials as such on the Munitions Board’s list should not be supplied in quantities that would dangerously deplete our reserves. Other materials which are approaching the critical stage of supply should be similarly treated.
2.
National security requires adequate reserves of strategic and critical materials. The maximum possible fulfillment of the stockpiling program of the Munitions Board should be made an objective in fulfilling the European Recovery Program. Every effort should be made to maintain the importation of such materials at least at current rates. Appropriate and expeditious expansion of existing production and exploration and development of new sources of supply within the control of the countries under the Program should be promoted. Similar considerations should apply to materials approaching the critical stage of supply. There should be no restrictions on increased production for United States requirements of these materials due to cartel arrangements and similar devices. Expansion and development [Page 778] of foreign sources of supply would serve the interests of both world recovery and national security.
3.
To assist the development of foreign sources of supply of strategic and critical materials, American private capital and initiative should be encouraged in such productive enterprises abroad as part of the European Recovery Program. Some of the countries under the European Recovery Program may be unable to provide the means required for increased production and new development. In such cases prompt development of these urgently needed sources of supply by the application and utilization of American private investment, management, technical skills, and equipment should be encouraged.
  1. See circular airgram 1620, December 22, p. infra. ↩