840.50 Recovery/9–647: Telegram
The Acting Secretary of State to President Truman
us urgent
1025. Eyes Only for the President1 from Secretary of State. There is every indication that the economic situation in Europe is deteriorating rapidly and seriously. It is now apparent that some of the more important countries, notably Italy, France and England, and possibly some of the others, will be in a dangerous position before the end of the year. This has resulted in part from the factors with which you are already familiar; but the process is being materially aggravated and hastened by the crop failures in Western Europe and by the emergency measures recently taken in England.
Reports along this line are already increasing in Washington, and press and radio are full of comment and speculation about our reaction. As you have seen, Lovett was closely questioned on this subject at his press conference on Wednesday and, while he refused comment on special session or other form of Congressional hearings before end [Page 411] of year, there is no doubt questions at my press conference next Wednesday will continue to center on this point. In the circumstances I feel I should make some type of statement.
There follows text of statement to be made if it meets with your approval:
“We have been following carefully the reports of the economic situation of the various European countries.
“We see the requirements of these countries as falling into two phases of one program: first, some form of interim assistance to meet the immediate threat of intolerable hunger and cold; and second, the general program for rehabilitation of the respective economies.
“The nature of the long-term problem of European reconstruction and our attitude toward it remain basically unchanged. But the short-term problem has become more immediate. Bad droughts, following an unusually severe winter, increasing crop shortages and restrictive financial measures which certain European governments have already been obliged to take, have had serious repercussions and have accelerated the need of some European countries for assistance in reducing hunger and cold this winter.
“In these circumstances this phase of the requirements will clearly have to be given our urgent consideration and cannot await the completion of the broader study which the over-all program demands.
“We expect that, by the latter part of October, we will have available working papers on the basis of which the appropriate Congressional committees could undertake consideration of means to supplement European supplies of food and fuel for the coming winter where it can be shown that every effort has been made locally to meet the critical needs. The majority of the Congressional committees visiting Europe will have returned by that time. We hope that shortly thereafter the complete data for the European Recovery Program can be screened and made available in order that the problem may be faced in its entirety and that any action taken to meet immediate needs may be correlated into the general program.
“The question of how the necessary Congressional authority is to be obtained must await developments of the next few weeks.”2
Lovett
- President Truman on a state visit to Brazil had addressed the closing session of the Inter American Conference for the Maintenance of Continental Peace and Security at Petropolis, Brazil. For documentation regarding the Conference, see vol. viii, pp. 1 ff.↩
- The text of this statement by the Secretary of State was released to the press on September 10.↩