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

The Administrator for Economic Cooperation ( Hoffman ) to the ECA Mission in France


Ecato 798. Reference Toeca 1104,1 1119, 1120.2

We approve texts of exchange letters Petsche–Bingham as indicated Toeca 1104 and Toeca 1119.
We retain serious doubts on ability of French Treasury to repay 30 billion franc advance in November or to replace ordinary December release for investment purposes with own resources and are concerned that regularization of advance may aggravate Treasury difficulties at that time. For NAC paper3 we propose to describe 30 billion francs as special release for August investment expenditures in connection with Treasury stringency, the exact status of which in overall counterpart program will be determined later in year. We understand however language exchange of notes and press releases justified for [Page 650] bargaining purposes with French in connection with their budgetary commitments.
We also approve paraphrased text of press release in Toeca 1120. Release date August eight, p. m. papers. Pass Brown.
Draft of NAC paper will be sent for your comments shortly.
  1. See footnote 3, p. 648.
  2. Not printed; it requested approval of a draft press release on the agreement by the ECA Administrator to a request by the French Government for withdrawal of 30 billion francs from the counterpart funds of American aid (ECA Telegram Files, FRC Acc. No. 53A278, Paris Toeca).
  3. Not printed.