840.6362/3–2847: Telegram

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

secret

1950. This is Salco 465. Reference Dept 1275, London, sent Moscow Secdel 1362 and Delsec 1354 sent London 108. Have informed McNeil and Shinwell that US regards as unrealistic any significant increase in US coal exports to Europe over 2.6 million tons monthly allocated in second quarter. We think UK initiative at ECO general purposes committee meeting March 26 in proposing admission of Eire, Iceland and Faroe Isles to ECO was intended to inform other ECO members indirectly that UK herself would not seek coal outside ECO. In view improbability any increase in US exports we doubt UK will now approach ECO for imports.

Gridley, former ECO Chairman, now Marketing Director, National Coal Board, was prepared go US to discuss procurement arrangements. Trip now unlikely.

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Would appreciate Department keeping us informed whether any countries fail to contract all of their US allocation, and any change your estimates.

Sent Department as 1950, repeated Moscow as 145 for Secdel.

Douglas