Foreign Relations of the United States, 1949, Western Europe, Volume IV

840.00/1–949: Telegram

The Acting Secretary of State to the Embassy in France

top secret

Washington, January 10, 1949—6 p. m.

us urgent

70. Personal for Harriman from Lovett. Agree fully necessity coordinating rearmament and ERP problems from standpoint of giving full consideration to impact upon economic recovery programs. Your letter 12 Nov 1948¹ was of course carefully considered here but reply was delayed pending full discussions here looking toward establishment of coordinating arrangements among Washington agencies primarily concerned. Unfortunately this has taken longer than anticipated. Last week State Dept at request President undertook coordination of development and presentation to Congress of overall foreign mil assistance programs. Ad Hoc Committee composed of Forrestal, Hoffman and Sec State was established and Correlation Committee set up composed Gross for State as Chairman, Gen Lemnitzer for NME and Henderson for ECA.² It was understanding State Dept that ECA would advise you last week of creation of Committee, its general terms of reference and would request certain info from you concerning production studies and economic analyses prepared in connection with ERP programs.

In view shortness time, Ad Hoc Committee decided over weekend to send Paul Nitze to Europe for discussions with you, Emb London and DelWU concerning present status of programming and considerations on which programs will be prepared. Committee expects Nitze to return with available info concerning studies already made of Western Union production capabilities, balancing of mil requirements against production capabilities and determination of implications of mil requirements with respect to economic recovery program. Purpose Nitze call to Bonesteel was to arrange earliest possible meeting with Bonesteel and other appropriate US officials in London and Paris. Nitze has been requested discuss with you procedures by which continuing work on rearmament programs should be carried on. This will raise question US representation on Mil Supply Board and Nitze will bring with him proposed instructions to US rep on MSB as well as proposed procedures for effecting coordination of US reps in Europe including of course yourself. Ad Hoc Committee also desires info concerning composition and operations Financial Committee relation of which to Mil Supply Board and your office is not at present known here.

Tel formally advising you, Embs London and Paris and DelWU of Nitze mission will be transmitted later today.³

Lovett

1. See footnote 3, p. 15.
2. Ernest A. Gross, Legal Adviser of the Department of State and Coordinator for Foreign Assistance Programs; Maj. Gen. Lyman L. Lemnitzer; Alexander I. Henderson. The two committees referred to here are the Foreign Assistance Steering Committee and the Foreign Assistance Correlation Committee (FACC), both centered in Washington. Documentation relating to the formation and activities of the FACC is scheduled for publication in volume i.
3. Not printed.