740.5/8–150: Telegram

The Secretary of State to the Embassy in the United Kingdom

secret
priority

580. For Douglas. Ref Todep 151 and urtel 6482 fol amendment shld be made in Todep 15 para (2), d: Delete “opposition to” and substitute “views concerning”.3

We agree that matter is one which shld be discussed with Fr and Brit first. We had assumed this was provided for in phrase “if you think appropriate”. Situation has now however changed. In connection with additional MAP appropriation now being presented to Congress strong feeling has developed that all facilities in the free world which can be effectively used should be employed in producing additional matériel requirements. Record before Congress will clearly show intention to use MAP funds for purchase end items and components as well as AMP and raw materials. This includes Ger and in all probability Japan but in these cases no expectation of procuring combat type matériel. Nor is there any intention at present to make any general amendment to PLI Agreement to increase capacity in Ger. This will mean that we will be considering the use of Ger productive capacity in connection with our expenditures under additional MAP and that we will also be urging other NATO countries to place orders there [Page 175] when advantageous. Secy will take above line before Congress Aug 2 and probably news will be out Aug 3.

In view of above we believe Brit shld be informed at once. We are sending similar wire to Bruce requesting him to inform Fr. We believe it shld be stressed that basic motive is to find means of carrying defense load with minimum impairment of economic standards of countries undertaking this task including U.S.

We are instructing Spofford4 to present matter to NAT Deputies as soon as he hears from you and Bruce that Brit and Fr have been informed.

In as much as we are merely proposing purchases in Ger and urging others to purchase in Ger and as there is no question of changing PLI Agreement or other occupation policies at this time, we do not believe that this is a matter requiring Fr and Brit agreement. Because of time factor we believe NATO Deputies should be informed immediately after Brit and Fr Govts have been informed.

Acheson
  1. See footnote 2, supra.
  2. In telegram 648, July 31, 4 p. m., not printed, Douglas asserted that “The use of German manpower for the purpose of producing primary commodities and finished non-military articles which are necessary for military operations is a matter for the occupying powers in the first instance to discuss and agree upon” (740.5/7–3150).
  3. This change in the instructions sent to Spofford in Todep 15 was made in time to be reflected in the repetition of those instructions in telegram 579, supra.
  4. Todep 22 to London, August 1, not printed.