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

London Embassy Files, Lot 58F47, 500 Marshall Plan: Telegram

The Acting Administrator for Economic Cooperation (Foster) to the Chief of the ECA Mission in the United Kingdom (Kenney)

secret

Washington, November 18, 1949—9 p. m.

Ecato 1653.¹ Ref Toeca 1734 repeated Torep 1594, and Repto 7458 sent London Repto 1009.²

1. We have not yet been able to complete discussions with State, Defense and other interested agencies but for reasons indicated in para 5 we believe it desirable to make a preliminary reply at this time.

2. We certainly approve of using all reasonable means possible for stimulating economic development of overseas territories. So far as is appropriate we will greatly encourage and support all moves in that direction. We, therefore, welcome evidence of interest of Morrison³ and Tizard⁴ in taking full advantage of ECA funds for overseas territories development.

3. We recognize the important interrelationship between economic development of the overseas territories and military or political consideration and objectives. We believe, however, that we should not lose sight of the fact that the ECA objective is primarily economic recovery and development and that we should always emphasize this fact.

4. Our first reaction is that we even more strongly believe that following the recent Hoffman speech in Paris, development in the direction of European integration must be kept in this forefront of our activities. Desirability of an active approach to integration is as strong, if not indeed stronger, for the overseas territories, particularly those in Africa south of the Sahara, as for the metropolitan areas. We believe therefore that even on an informal basis such a conference as you propose should include representatives of other metropolitan powers concerned with Africa, and should not be bilateral US–UK undertaking.⁵

5. We have been confidentially informed that representatives, State, Army, Navy and Air Force under leadership W. J. Galloway of State Department are scheduled to leave Washington, Tuesday, November 22, for meeting with corresponding British personnel on topics State to be closely related to substance your cable. We are promised more detailed information early next week which we shall forward to you. These preliminary talks reinforce our view as to advisability of exercising some caution as regards subordination economic considerations under ECA terms of reference to preliminary military considerations expressed in para 3 above. While prepared for cooperation in considering more inclusive interests, we must maintain our essential control over ECA programming.

Foster

1. Repeated to Paris as Repto 9429.
2. Neither printed; the former reported British interest in using ECA funds for overseas development, and in the latter Harriman expressed the view that further efforts should be made to overcome the difficulties involved and to accelerate such development (London Embassy Files, Lot 58F47, 500 Marshall Plan).
3. Herbert Morrison, Lord President of the Council and Leader of the House of Commons.
4. Sir Henry Tizard, Chairman of the British Advisory Council on Scientific Policy and of the Defence Research Policy Committee.
5. In telegram 4202, November 22, to London, not printed, the Department of State reported that it bad expressed reservations to ECA about the multilateral conference of metropolitan powers, stating that informal bilateral discussions with the British should be the first step in promoting development programs. (840.50 Recovery/11–2249)