840.50 Recovery/9–1747: Telegram
The Ambassador in France (Caffery) to the Secretary of State
4025. After reviewing latest draft general report yesterday morning, Clayton, Douglas and I met with Sir Oliver Franks to discuss in detail revision sections of report concerned with balance of payments, internal financial stability and freeing of trade barriers.
Subsequently we attended informal meeting Committee of Economic Cooperation September 16, afternoon, arranged to permit discussion with all 16 delegates. Franks opened meeting by referring to draft changes in general report points made by Clayton September 11 [Page 436] (reported Embtel 3709, September 12). French draft proposals (reported Embtel 3762 September 151) were summarized by Alphand, who indicated they had been generally agreed upon except as regards point six respecting continuing organization. With reference point six, Alphand indicated Swiss had reservations (Swedish delegate arrived later during meeting and later indicated privately to Clayton his government likewise had some reservations respecting French draft on this point).
Clayton on behalf of the three of us congratulated committee on report, referring to magnitude of task and tight time schedule. He indicated that “in their work the representatives of the 16 European nations have blazed a new path in the history of Europe, if not in the history of the world”. He expressed appreciation for work done in preparing recent changes in general report, and indicated he had no substantive comments as regards new drafts on points (1) to (3) inclusive. (These points in order given by Alphand were: (1) undertaking on internal stability, (2) undertaking concerning production program, (3) pledge to cooperate). As regards point 4 (measures relating to reduction of trade barriers), Clayton stated he had been informed final draft not ready but indicated his understanding that generally acceptable formula on this point would be reached. With reference point 5 (requirements for equipment), Clayton stated he had been informed final draft not ready but that he understood matter would be taken care of when replies were received to telegram recently sent out requesting information from participating governments as to amount of equipment included in requirement figures submitted on non-programmed items. With respect point 6 (continuing multilateral organization), Clayton stated that paragraph 103 of general report (point 6 Embtel 3762) would, if approved, take care of matter.2
Clayton cautioned that while he had no further comments, Washington might have additional suggestions. He emphasized fact that his remarks could by no means be taken as implying any commitment by US Government respecting any part of report, particularly total figures indicated therein. Clayton stated his personal view that report as finally drafted should make favorable impression in US and added that public discussion in US and in participating countries might result in good suggestions being advanced which would merit incorporation in report. It was, therefore, fortunate that first report was to be [Page 437] of a preliminary character. He concluded by stating he expected to see some members of committee in Washington relatively soon.
Upon invitation by Franks for comment, Danish delegate Vestbirk expressed appreciation and thanks to US Government representatives for opportunity to discuss questions of concern to committee. He indicated that Denmark was primarily interested in utilizing its agricultural capacity to fullest extent but for this purpose needed feedstuffs which for time being could only be obtained in US and elsewhere in Western Hemisphere for hard currency. In response, Clayton indicated that while personally he was fully aware of need for enough flexibility in any program to permit some purchases elsewhere than in US, certain groups in US might seek to limit Marshall aid to surplus commodities in US.
Swiss delegate associated himself with thanks to US representatives and stated his conviction that spirit of solidarity prevailing in committee would dissipate effects of divergence of views over paragraphs on continuing organization. He added it was merely matter of finding right formula.
Sent Department 4025 repeated London for Clayton and Douglas 756.
- Not printed.↩
- The material transmitted as point 6 of telegram 3762, September 15, 1947, from Paris, not printed, is substantially that found in paragraphs 111, 113, and 114 of Chapter v, Committee of European Economic Cooperation, vol. i, General Report, Department of State publication 2930 (Washington, Government Printing Office, 1947).↩