840.50 Recovery/7–347: Telegram
The Secretary of State to the Consulate at Geneva
urgent
730. For Clayton.1 Inability of Bevin, Bidault and Molotov to reach agreement on basic approach to formulation of European recovery plan suggested by US makes it seem extremely unlikely that any constructive action along this line could now be achieved in ECE. Soviet opposition to program of mutual assistance and cooperative attempt to [Page 310] formulate solutions to common problems is contrary to spirit if not letter of para 1 (a) ECE terms of ref. It is of greatest importance that US continue to support concept of prompt and effective cooperation and mutual assistance, which is underlying principle of UN as well as Marshall proposals. Assumed British and French will not favor discussion Marshall proposals in ECE. However, if any discussion of Secretary’s suggestion for formulation of recovery program comes up in ECE or in conversations with delegates, US reps should continue to hold position that means for working out cooperative recovery program including place of ECE, should primarily be decided by Eur countries, that US does not believe solution of rehabilitation problems can be achieved through relief operations but only through measures which lead directly to ability of Europe to support itself by normal economic transactions in Europe and with rest of world. Relief, grants and loans must be temporary expedients. Although ECE was created to facilitate concerted action for reconstruction, most important to use whatever means will result in prompt and effective action. If decided to act outside ECE, which is still in organizational stage, liaison with ECE could and should be established.
Sent Geneva 730, repeated London 2893, Paris 2475.