840.00/3–1549: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
970. Re Embtel 9061 and Deptel 822.2 Foreign Ministers met in initial session yesterday with varied agenda. I was available but was not called to attend. Bevin told me late last night it was somewhat uneasy meeting and that in course of meeting several difficult questions arose but were resolved satisfactorily.
- 1.
- French concern as to Soviet reaction to pact and rearmament.
- 2.
- Dutch concern over US warning that political factors in US made it unlikely military equipment could be made available to Dutch unless Indonesian question settled.
Bevin mentioned in passing that there was concern among certain of British because commitment to reach additional military production [Page 225] schedule at rate $400 million, meant total commitment $600 million for two years (150–200 million by 49/50 and $400 million 50/51) which in turn might mean about 40 million pounds additional in British defense budget next year making total 800 million pounds, budget. Cripps believes can get same military efficiency next year with smaller budget and does not want to commit himself to 800 million.
I stressed once more absolute necessity closest mutual coordination on MAP between WU as group and US. Also that for any doubtful questions on financial or economic matters affecting ECA Harriman must be consulted. Told Bevin he should not underestimate necessity close US participation prior any statement from WU group and advantages both ways close liaison.
Group is continuing its discussions today.
Presently contemplated will meet with group at five this afternoon. Consultative council probably will not adjourn until March 16.
If any economic or financial questions develop will advise Harriman pronto.
Sent Department 970; repeated Paris 175 for Caffery and Harriman, The Hague 33 for Baruch, Brussels 42 for Kirk.