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  4. Document 224

ECA Telegram Files, FRC Acc. No. 53A278, Paris Repto: Telegram.

The Acting United States Special Representative in Europe (Foster) to the ECA Missions in Europe

confidential
Paris, April 30, 1949—8 p. m.

Repto circular 190. To clear up confusion that seems to exist in some participating countries it seems wise to reaffirm and clarify the policy regarding use of ECA funds for military purchases.

1.
While military expenditures are part of the normal economy of nations, the essential purposes of American assistance to European recovery, as set out in the Economic Cooperation Act of 1948, are the promotion of industrial and agricultural production, restoration of sound finance and promotion of international trade. The achievement of these purposes may, of course, indirectly promote military strength, but ECA assistance should not be used for strictly military purposes.
2.
Authorizations for ECA financed importations should not be used for procurement of obviously military items such as munitions, military aircraft, etc.
3.
In the case of items which have both military and civilian uses, or raw materials which may be processed into either civilian or military end products, the use of ECA authorizations for imports which are clearly identified as being for military purposes should be avoided to the extent that such identification is practicable and consistent with normal procurement methods. Even where such identification is not practicable, total ECA authorized imports for any item should not exceed the total expected civilian use of that item. It is recognized that participating nations will finance basic military problems [programs?] with their own foreign exchange resources to extent that these programs were contemplated in balance of payments estimates on which ECA assistance based. Only incremental military programs to be covered by MAP assistance.
4.
An exception to the policy stated in paragraph 3 is that there is no objection to the use of ECA assistance for items such as food, medical supplies, fuel for barracks or other items which are necessary for the comfort of personnel but bear no other relation to military activities.

Please see that government is informed above policy to extent you deem necessary to effect compliance.

Sent Frankfurt for Collisson.1

Foster
  1. Norman H. Collisson, Chief of the ECA Mission at Frankfurt.↩