Office of the Historian

651.60H31/5–2749: Telegram

The Ambassador in France (Bruce)1 to the Acting Secretary of State

secret
Paris, May 27, 1949—7 p. m.

2177. 1. On May 20 Embassy informed by Foreign Office of Yugoslav approach to French aircraft industry to purchase ten jet trainers known as SO–6000 (equipped with Rolls Royce Nene engines) and 100 Hispana Suiza 12–Z engines (1800 HP for takeoff). I immediately called on Schuman2 expressing surprise at this proposal and stating hope that transaction would not be consummated. Schuman agreed that transaction appeared inadvisable and promised look into matter. This morning at Foreign Office request, Embassy officers called to discuss matter further with Alphand3 and Auboyneau.4 French argument was that sales in question would benefit French aircraft industry. Embassy officers expressed strong objection to this proposed transaction and pointed out possibility adverse reaction in US.

2. Embassy officers then raised with Foreign Office officials matter of French refusal institute controls over east-west trade with reference [Page 117] 1–A and 1–B items (Embtels 1950 and 1957 May 125) and pointed out that this as well as proposed aircraft deal could be extremely embarrassing particularly at present critical time when ECA appropriation under consideration in Congress. French were asked for statement their intentions re these two matters and also re military equipment under law of 1939 which is administered by Foreign Office.

3. Foreign Office officials then indicated that aircraft deal was merely proposal advanced by Yugoslavs and that it would not be carried further “at this time”. French next indicated that they had not abandoned intention to control 1–A exports to satellite countries; that application such controls merely delayed until conclusion CFM meeting. They also indicated that such controls now being enforced de facto and invited US attention to recent trade agreements with satellite countries. Be 1939 military list Alphand gave instructions in presence Embassy officers to complete its modernization at once. Alphand also agreed further discussions of satellite aviation policy at early date.

4. In course discussion Foreign Office officials expressed hope that US would appreciate their action in bringing proposal Yugoslav aircraft deal to immediate attention US and that US would reciprocate with information as to 1–A transactions between US and Yugoslav parties. Embassy representatives pointed out that such information had previously been conveyed from time to time and that this practice would be continued.

Pouched to Belgrade.

Sent Department 2177, repeated London 337, Bern 35.

Bruce
  1. David K. E. Bruce succeeded Jefferson Caffery as Ambassador in France at the beginning of May 1949.↩
  2. Robert Schuman, French Minister for Foreign Affairs.↩
  3. Hervé Alphand, Director General of the Office of Economic, Financial, and Economic Cooperation Affairs, French Ministry for Foreign Affairs.↩
  4. Christian Auboyneau, Office of Economic, Financial, and Economic Cooperation Affairs, French Ministry for Foreign Affairs.↩
  5. Neither printed.↩