560.AL/12–847: Telegram

The Ambassador in France ( Caffery ) to the Secretary of State

confidential   us urgent

5270. In conversation last evening with Chauvel, General Secretary Foreign Affairs, I took opportunity to indicate briefly Department’s [Page 808] and Clayton’s reaction to French delegations attack on Article 24 (Deptel 4419, December 6).

Chauvel felt this incident required special attention by Foreign Affairs and asked me to give him memorandum on incident and our position thereon. He would then press matter with competent ministers in effort to prevent recurrence. Accordingly, I have transmitted memo to Chauvel on basis Deptel under reference. If satisfactory assurances not forthcoming immediately shall pursue matter with Lacoste and Schuman if necessary.

During conversation with Guindey1 this morning, Reagan2 brought up incident of French delegation’s attack on provision December 3 in view of known support Minister of Finance3 to Article 24 against opposition Philip and other officials in other ministries. Guindey said his government had received cable request from Philip Habana for instructions whether French should propose any amendment to Article 24 in view of deadline which Guindey understood to be December 6. Guindey said Philip instructed by cable December 6 to propose no amendments. Philip had also asked whether he should support Belgian proposed amendment which would alter voting powers of fund members (Guindey did not know details Belgian proposal but Reagan gathered inference was to weaken US voting strength). Philip was instructed not to support Belgian proposal.

Asked for explanation of French “attack” Guindey surmised French “expose” December 3 was not really attack but probably reiteration of French position (particularly Philip’s) on this article during discussions Geneva. It was pointed out to Guindey that, since French Government had formally accepted Article 24 and parallel position in general agreement, it seemed gratuitous and unnecessary for French delegates Habana to reiterate position taken during discussions Geneva, especially as such repetition might have adverse influence on attitude of other delegations at Habana. Guindey admitted validity this argument and said he would have matter investigated and effort made to bring French delegation under control.

Sent Department 5270, repeated Habana 11 for Clayton USDel ITO conference.

Caffery
  1. William Guindey, Director of Economics and Financial Affairs, French Ministry of Finance.
  2. Daniel Reagan, Counselor of Embassy for Economic Affairs at Paris.
  3. René Mayer had become Minister of Finance on November 22, 1947.