840.50 Recovery/6–1347
Memorandum of Conversation, by the Secretary of State
| Participants: | M. Henri Bonnet, French Ambassador |
| The Secretary | |
| Mr. Matthews1 |
The French Ambassador called at 11:30 this morning at his request and said that he had been instructed by his Government to have a preliminary conversation with me concerning the suggestions contained in my remarks at Harvard University. He said that his Government attached great importance to the Harvard speech which was why he had asked to see me urgently rather than wait until Monday. Since his time was short (he knew I had a 12 o’clock engagement) he had put what he wished to say in an aide-mémoire although his Government had suggested merely an oral discussion. He then outlined for twenty minutes the points made in the attached aide-mémoire.2 [Page 252] In his oral outline he emphasized the following points:
- 1.
- His Government was in full accord with the approach I suggested at Harvard and desired him to discuss with the American Government the best means of procedure.
- 2.
- France agreed with the importance of a determined European effort to bring about within the limits of possibility its own reconstruction.
- 3.
- European countries should first draw up an inventory of their total resources in the fields of agriculture, raw materials, industrial production, power and transportation.
- 4.
- This inventory would show the extent of the deficiency in equipment and materials which would remain in spite of all the individual efforts of countries of Europe and in spite of such plans for mutual aid to each other as they may be able to devise.
- 5.
- The resulting deficiency which must be supplied by outside aid, particularly American, to be of two sorts; that required for the rebuilding of Europe’s productive apparatus and that needed for daily consumption during the next three or four years pending full reconstruction. These requirements unfortunately greatly exceed available dollar exchange.
- 6.
- In the opinion of the French Government the inventory and estimated balance of payments deficit should not be reached by calling a large conference which would be both long drawn out and dilatory. It should be done by forming a number of ad hoc committees composed of representatives of European producer states and of the United States.
- 7.
- The deficit in balance of payments resulting from lack of food and raw materials should be communicated in turn to distributive organizations such as ECO and IEFC. “Thus the needs could be determined of essential foodstuffs and raw materials needed by Europe, the importation of which should not be a charge on the balance of payments.” As an example, an ad hoc committee to study coal production composed of representatives of the United States and European producing countries should be set up, Germany being represented by “delegates of the occupying powers”. This committee might study which European coal fields should be the object of the principal effort to obtain the quickest possible results for the greatest number of countries. “It would be apparent that mine equipment and certain steel tonnage would be necessary. Part of this could be furnished by European countries. The remainder should be sought by them from the United States. It was important that during the period of reconstruction European countries should have their balance of payments relieved [Page 253] of the charge represented by imports of American coal. On this question the coal committee should deal with ECO.”
M. Bonnet also said that he hoped that the plan suggested at Harvard would not interfere with France’s efforts to obtain her further loan this autumn from the World Bank. He said that heavy payments (on previous credits) are already falling due and the dollar question is daily one of considerable worry to France.
I told M. Bonnet that what he had said interested me greatly. I could say no more at this time but I would study his memorandum with great attention. I was impressed with the need for European countries to work together on the problem and I was impressed with the urgency in point of time. M. Bonnet said that he hoped to have further talks with me after I had studied his memorandum.