740.00119 EW/9–748

Memorandum of Conversation, by the Secretary of State

secret
Participants: Sir Oliver Franks, British Ambassador
Secretary Marshall
Mr. HickersonEUR
Mr. SaltzmanO

The British Ambassador, Sir Oliver Franks, called on me this morning and left with me the attached message1 from Mr. Bevin on the subject of German reparations. The Ambassador stated that he believed that this message had been written prior to some recent developments in connection with Mr. Hoffman’s Advisory Committee and he then outlined briefly to me contents of the message. He indicated that he understood the ECA Administrator’s responsibilities respecting reparations as set forth in the Foreign Assistance Act.

I told the Ambassador that the Department’s view with respect to this subject was in substantial agreement with Mr. Bevin’s, but pointed [Page 804] out to him the U.S. political situation in this regard with special reference to its possible effect on foreign aid appropriations. Referring to Mr. Bevin’s discussion of the security aspects of the reparations program, I told the Ambassador that I believe that there has been a tendency on the part of both governments to follow a piecemeal and detailed approach to the security problem, rather than a fundamental and over-all basis, and that while the various details which had been considered are in certain instances important ones, a successful solution will depend on an accurate diagnosis and treatment of the fundamental factors involved.

The Ambassador asked me whether I could see any objection to his appearing before Mr. Hoffman’s Advisory Committee on this subject. I replied that I thought it appropriate for him to do so.

Upon his departure, the Ambassador asked whether Mr. Bevin’s note would be answered and was told that the reply2 would be given in the near future.

G. C. M[arshall
]
  1. See infra.
  2. Secretary Marshall’s reply of September 16 is printed, p. 808.