840.50 Recovery/8–1847: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom
secret

3596. For Ambassador Douglas. Dept deeply concerned by indications that Paris Conference is not facing necessity of subjecting stated requirements of participating countries to critical analysis with a view to producing a final program whose statements of needed aid would be justifiable as realistic and based on maximum self-help and mutual aid. Study of questionnaires shows end use justifications of [Page 368] requirements requested in very few cases. Other reports indicate that requirements statements and existing national plans of participating countries are being accepted without discussion of real analysis. Merely adding up separate estimates would obviously result in unacceptable program and reductions would be more difficult than if made during formulation stage.

It seems inappropriate to consider offering revised level of industry plan to Paris Conference for comment on rate of and priorities in reactivation unless comparable comment made by Conference re plans and statements of all participating countries. An opportunity to seek help from bizonal area as well as from US might further encourage avoidance of critical discussion of proposals for self-help.

In absence of assurances that Paris Conference intends to analyze separate country proposals with aim of securing integrated realistic program embracing all participating countries, Dept feels any decision re discussion in Paris of reactivation rate bizonal level of industry premature. (Re para 1 Douglas message from Paris, 3310 Aug 181). Will Clayton, Douglas and Caffery please comment re Depts apprehensions? In meantime discussion of rate of reactivation bizonal industry in London talks with French should be avoided. Clay’s views regarding appropriate position also requested. Sent London for Ambassador, repeated to Paris 3120 for Ambassador, and to Geneva 1043 for Clayton.

Lovett
  1. Not printed.