862.60/2–2548: Telegram

The Secretary of State to the Embassy in the United Kingdom


653. For Douglas. Re Deptek 535, Feb. 17,1 and 607, Feb. 21.2 Has now become apparent that substitution of plants was not fully understood in Cabinet and is being (questioned by certain Cabinet members who fed that the plant to be selected shld represent net additions to August 1947 level of industry. Altho Dept taking firm stand that there shld be no general re-examination levels of industry themselves, this issue will probably not be resolved for several days or more. Meanwhile request you tear this in mind and explore probable Brit and French reaction to elimination attempt finding substitutes for plants recommended for removal from list. Any info you can give us soon re results anticipated with regard to both re-examination plant list and deliveries to past will be most helpful here.

In connection with question substitution of plants for any which might be recommended for retention, Dept fully aware that substitution may not be feasible in many instances but feels that major controversy with Brit, French and, other recipient countries wld be abided if principle substitution included and effort made find substitute plants which wld be acceptable.

  1. Post, p. 733.
  2. Not printed.