840.50 Recovery/6–1448

Memorandum of Conversation, by the Secretary of State

secret
Participants: The British Ambassador1
Sir John Balfour2
The Secretary
Mr. Kennan3
Mr. Wailes4

During a conversation with the British Ambassador this morning on several Anglo-American problems, he left with me the attached notes for an oral statement which Mr. Bevin had asked him to make. After summarizing the notes, he said that he had already had a satisfactory talk with Mr. Thorp5 on the ECA bilateral agreement,6 and that while it appeared that Mr. Thorp would not be able to make all the changes in the draft which the British might like, nevertheless, Mr. Thorp had indicated that he was prepared to meet the British views in so far as possible.

[Page 1109]
[Attachment]

Notes for Oral Statement to Mr. Marshall

Mr. Bevin noted particularly in your Portland speech7 your reference to the constant fear of the people of Europe that the United States will change its mind. He thinks it is true that public opinion in Britain and in Europe is uncertain on this score. This has a particular application at home. In spite of differences of outlook on social matters between the two governments, Anglo-American relations must remain very close since whatever the differences between our two systems, we are both opposed to the totalitarian system of the Soviet Union. But if, in view of this close tie-up, the impression is created that whenever American foreign policy appears to shift we are expected to shift with it, then there may well be an outcry at home to the effect that we have sunk to the position of a vassal state, and this, if it came about, could only redound to the advantage of the Soviet Union.

On an analogous point, Mr. Bevin is concerned about the drafting and negotiation of the European Recovery agreements. Mr. Bevin is sure you will agree that there should be consultation at the political level, not only on the actual provisions of any agreements, but on drafting them in such a way as to avoid the appearance of American domination and unfortunate public reactions at home and elsewhere.

I expect to be discussing this matter further with the State Department in the next day or two and I am sure that I can count on their sympathetic co-operation in the desired direction.

  1. Sir Oliver S. Franks.
  2. British Minister in the United States.
  3. George F. Kennan, Director of the Policy Planning Staff.
  4. Edward T. Wailes, Chief of the Division of British Commonwealth Affairs.
  5. Willard L. Thorp, Assistant Secretary of State for Economic Affairs.
  6. The reference here is to the first draft of the master agreement for the ECA program, which had been delivered to the British Embassy on May 13.
  7. For the text of Secretary Marshall’s speech, May 28, 1948, to the General Federation of Women’s Clubs in Portland, Oregon, see Department of State Bulletin, June 6, 1948, p. 744.