Foreign Relations of the United States, 1947, The British Commonwealth; Europe, Volume III

840.50 Recovery/8–2947

The Acting Secretary of State to President Truman

top secret

[Washington,] August 29, 1947.

My Dear Mr. President: I am enclosing herewith three documents which represent certain preliminary work of the Department of State setting forth the problems of European Recovery.

The complexity of the subject is such that it has taken some time to formulate worthwhile specific views on this question. It has also been necessary in order to reach this stage to obtain some concept of the developments in the Paris Conference on European Economic Cooperation. I feel now that progress has been sufficient to lay a basis for effective interdepartmental consideration of the policy issues involved in any European recovery program. It is especially necessary to have applied to this problem the best thinking of the interested Departments in order that a sound governmental position may be developed.

I should like to emphasize particularly the urgency of action on this question since the conference at Paris is expected to present a plan to the United States Government around September 15.

The documents enclosed herewith consist of:

(1) Memorandum entitled “Certain Aspects of the European Recovery Problem from the United States Standpoint.” This is a background study prepared in the Policy Planning Staff of the Department during July.¹ It is outdated in certain respects by the rapid march of recent events, particularly in connection with the British dollar position.

(2) A summary statement of the Department of State’s present views on the content of a European Economic Recovery Program, which has been communicated to Under Secretary Clayton in Paris, to guide him in his informal discussions with representatives at the Conference.² It should be noted that no U.S. representative has taken any part in the meetings of the Paris Conference, and that Mr. Clayton has at all times explicitly stated to representatives of other governments that he can in no way commit the United States Government to any course of action.

(3) A report, entitled “Problems of European Reconstruction”³ which the Department of State is considering releasing informally at the appropriate time as background material on the nature of the economic problems being faced by European countries.

I hope to send you shortly (4) a more detailed statement of the Department’s present views and (5) a rough draft of possible required legislation.⁴

You will note that the documents enclosed do not touch upon the capacity of the United States to aid Europe since this is a subject for study by the Committees appointed by the President on June 22, 1947.

I trust you will agree with me as to the urgency of arriving at an interdepartmental position on the host of complicated issues raised by these problems. I should appreciate it if you would designate someone on your staff to work with representatives of the Department of State. I have appointed Mr. Charles H. Bonesteel to coordinate work within the Department of State on the problems of European Recovery.

It seems to me essential to have a first meeting toward the end of next week to discuss the problems presented in the three documents enclosed with this letter.

In addition to your views on the substantive issues, I should very much appreciate your guidance on questions of procedure, particularly on the time and manner of getting the views of the members of the Non-Partisan Committee on Foreign Aid (Harriman Committee) and those of the Congressional leaders.

At your request these matters are being handled for the time being on a Top Secret basis.

Faithfully yours,

[

Robert A. Lovett

]

1. See editorial note, p. 337.
2. This information was communicated to Under Secretary Clayton in telegram 3029 to Paris, August 14, p. 356.
3. This document, prepared by the Economic Offices in the Department of State, is document D–4/19 of the Committee on European Recovery Program, not printed. A copy is in the Committee’s records in Lot 122.
4. On September 5 the Department sent to the President two additional documents: (a) “Questions of Policy and Procedure Regarding U.S. Aid to a European Program of Economic Recovery”, which was presumably document D–16a, prepared on August 25, and (b) an initial draft of possible required legislation, prepared by the Committee on the European Recovery Program as document D–18. These documents are in Lot 22, and letters of transmittal of copies sent to other departments are in the 840.50 Recovery file.