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

840.50 Recovery/9–2347: Telegram

The Ambassador in the United Kingdom (Douglas) to the Secretary of State

secret
us urgent

London, September 23, 1947—3 p. m.

5119. From Clayton and Douglas. After consultation with Caffery, we submit following re questions raised your 3604 to Paris, September 20, 3 p. m.

a. Concur in suggestion for statement by Secretary.

b. Agree on invitation to CEEC group and suggest October 6 as beginning date. Invitation should be addressed to “Chairman, the Rapporteur General, certain delegates from participating countries”, terminology used in initial report. (Reason back of this was revolt of smaller participants against “too close control” exercised by Executive Committee. In practice invitation this form would result in Executive Committee plus Greek and Danish delegates appearing in Washington.)

c. Understand from Bonesteel’s telephone conversation with Caffery that Department is still considering question presence in Washington of technical experts. We believe European character of program should be maintained and discussions in Washington strictly limited to time period indicated in invitation, say October 4 to 20. In view of time element, however, group of delegates might bring small group of experts, say one for each technical report, for sole purpose of explaining to our experts methods used in compiling reports. If, however, there is to be further work of technical committees, we believe it should be done in Paris and not in Washington.¹

Principal objective of Washington meeting should be to permit Washington to formulate precise statement of what we want reconvened conference to do. Franks could then use this as basis for reconvening conference and charting its work program.

Reconvening of conference would make most sense to Europeans if it were possible to state publicly that need for revision had arisen from introduction two new elements: (1) participation western Germany, and (2) need to readjust import and production programs to conform to possible availabilities in 1948.

d. ande. In view of rapid deterioration financial, economic and political situations two vital areas France and Italy, we recommend that time schedule calling Congressional committees together and convening special session be advanced to beginning October and beginning November, respectively.

In our opinion, initial report contains enough of the essentials of a workable program to permit Congressional committees to commence consideration of interim aid within its framework by first week October. Our immediate problem is to meet effectively and at once the European crisis so that by spring we shall still have a democratic area upon which to build a complete recovery program.

Sent Department as 5119; repeated Paris for Caffery as 534.

Douglas

1. In telegram 5142, September 23, from London, Ambassador Douglas informed the Department that he and Under Secretary Clayton had discussed the above matters with Sir Oliver Franks. They informed him that their “views were tentative and based on preliminary exchange communications with Department,” but that they would apprise him when definite instructions had been received. (840.50 Recovery/9–2347)