840.50 Recovery/8–2247: Telegram
The Acting Secretary of State to the Embassy in France
urgent
niact
3158. For Caffery. Caffery’s 3395 (147 to Geneva for Clayton’s eyes only)1 reinforces view here that there must be major changes in both content and conclusions of CEEC report prior to completion. Realistic and workable program more important than meeting predetermined deadline for completion of report.
Program presently indicated by above message and other reports from Clayton, Caffery, and Douglas, does not appear to meet following essential standards: (1) achievement of European economy capable of maintenance without indefinitely prolonged outside support; (2) maximum realization of opportunities for mutual aid within the area; (3) concentration of aid at points where it will have maximum immediate recovery effects.
Coming to you soon is overall summary of Department’s view on essentials of a workable European recovery program. While we must not create impression that we are directing specific content of report or slowing down its preparation, publication of a report not meeting standards in para 2 above would do irreparable harm by evoking serious criticism in US and by further undermining confidence and hope of Europeans that they can help themselves.
Pending receipt of summary you should express to Franks and such others as you think necessary our grave concern as to character of presently envisaged report. If Conference procedure follows para 2 urtel 3327 of Aug 20 from Paris, you might suggest that Exec Comm, with help of technical committees, take the time necessary to direct report toward standards in para 2 above before discussing draft report with US representatives as envisaged in para IV Dept’s 3209 [3029] of 14 Aug to Paris. Overall summary mentioned above will contain further suggestions re procedures for consultation with US representatives, etc. To provide fullest and most expeditious amplification of departmental views I am consulting Secretary about sending George Kennan to Paris for short stay, leaving Washington [Page 377] Tuesday night. Would appreciate your immediate thoughts as to utility this move.
Repeated to Clayton, Geneva, as 1068.
Repeated to Douglas, London, as 3664.
- In telegram 3395, August 22, 1947, from Paris, not printed, Caffery noted that “Marris informs us that preliminary findings are that deficit of 16 participants plus western Germany for 1948–61 period will be in 26–28 billion dollar range order of magnitude decreasing from eight billion 1948 to four billion dollars 1951 . . . . the disturbing aspect arising not only from the magnitude of the sum but also from the fact that a viable economy would not result by the end of 1951.” (840.50 Recovery/8–2247)↩