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

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

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

secret

Paris, December 12, 1949—noon.

Toeca 1461. Reference Torep 9655; Repto 7586; Torep 9437.¹

1. Mission has given further study to problem of program discussed in reftels, and has reviewed various aspects problem with French. We urge that following views and recommendations be considered and request your reactions thereto.

2. We agree with the statement in paragraph 2 of Torep 9437 concerning the arrangements necessary to insure maximum usefulness aid for undeveloped areas. However, reference paragraph 3 Torep 9437, we urge greatest caution in concluding, on basis early FWA reports,² that all these principles have been violated. A full report on this subject by mission survey team is now in preparation. It is already clear that this report will not bear out this conclusion.

3. Nevertheless we fully recognize much greater difficulty for OTS than for metropolitan territories of insuring most efficient utilization aid. It should be emphasized that many difficulties in OTS are not necessarily result inefficiency, poor planning and mismanagement, but are inherent in areas where communications are bad, labor unskilled, economic development primitive and administrative machinery not highly developed. These difficulties are well known to all persons familiar with OTS, and will take many years to overcome. We are in full agreement that emphasis should be on advance planning and later follow-through in terms of plans previously established rather than mere end-use check. However, planning and subsequent execution of plans need to be quite flexible in undeveloped areas where climate, world market conditions, absence of adequate reserves of skilled labor, of equipment and basic economic facilities make local program highly sensitive to influences beyond the control of the planners or administrators. Growth of local political autonomy, a development encouraged by us, is another influence which makes coordinated planning and its execution more difficult.

4. We have for many months been aware that French justification for OT program has been inadequate, and we believe that French are also conscious of this. We have often pressed them for further information, but in many cases our own lack of personnel has prevented us from effective follow-up. Inadequacy of French presentation probably has several reasons, including poor statistical services, reluctance to give us more information on OTS than other countries are giving ECA, and a preference to give information on an ad hoc basis rather than as systematic obligation. In many cases information can be obtained by us in course of inquiry into particular problems. By insisting on more adequate formal submission, and by pressing our inquiries into particular problems of major interest, we believe necessary information will be forthcoming.

[Here follow details on pending authorizations, justifications for future programs, and administrative matters.]

10. In brief meeting with Bissell³ he read this cable and indicated general agreement. If you concur please advise so that we may proceed as recommended subject to working out long term arrangements in further detail.⁴

Bingham

1. None printed.
2. American officials on the basis of preliminary observations had reported finding many practical difficulties and some disagreements between French officials in Paris and Dakar, but no major abuses. (From Paris, telegram Toeca 1379, November 18, ECA Telegram Files, FRC Acc. No. 53A278. Paris. Toeca)
3. Richard M. Bissell, Jr., Assistant Administrator for Program, ECA.
4. In telegram Ecato 1064 to Paris, December 16, ECA commented on the points raised in Toeca 1461 and in particular emphasized the need to overcome the known difficulties through effective planning and execution of the programs involved. ECA agreed to withhold judgment about the situation in French West Africa until it had received and studied the report of the survey team. In telegram Toeca 1518, December 31, Bingham informed Hoffman, Foster, and Wood that he was sending copies of the report and was recommending that “in light of the evidence presented and conclusions reached by the inspection party we should notify France our willingness to have them resume requests for procurement authorization for French West Africa” on the same basis as for other overseas territories. (ECA Telegram Files, FRC Acc. No. 53A278, Paris Ecato and Toeca)