740.5/10–1650: Telegram
The Secretary of State to the Embassy in France 1
priority
Washington, October
16, 1950—7 p. m.
1963. At mtg this morning with Petsche and Moch Secy made oral statement covering fol points:
- 1.
- US accepts general lines proposed Fr mil effort for NATO and in IC as necessary, and is prepared to do what it can and properly shld [to] see it can be carried out without serious risk Fr polit and econ stability.
- 2.
- In general prefer contributions NAT defense be based on discussions in NATO.
- 3.
- Recognize, pending completion NATO work on MTDP, need for immed contribution NATO program and IC defense.
- 4.
- Expediting end-item programs particularly for IC.
- 5.
- For other than end-item programs, data available make accurate judgments as to amts required achieve program without serious risk inflation very difficult.
- 6.
- In view above and limit on firm US commitment to funds available in our FY 51, prepared make immed commitment $200 million, so far as it can be obligated up to end of US FY 51, half-way thru Fr FY.
- 7.
- This amt will be taken into account in multilateral distribution defense burdens. We believe wld be unwise for Petsche count on getting, as result NATO exercise, additional amt which wld bring US contribution for Fr FY 51 as a whole above $200–400 million, and might well be less.
- 8.
- $200 million assumes Fr will proceed with mil effort both in Fr and IC along lines discussed including HPPP and will take vigorous measures to prevent this effort from causing inflation.
- 9.
- This amt will be made available (1) cover imports, except from EPU countries, required by mil prod program; (2) to procure mil items produced in Fr for Fr or other use, it being understood the dollars so received will be used not increase reserve but (a) pay for imports from non-EPU countries required prevent inflation, and (b) meet obligations EPU arising directly or indirectly out of Fr production program; and (3) assist procurement for Fr from other countries of items now in Fr program which NAT review suggests may be more advantageously produced elsewhere.
- 10.
- Procedural and substantive aspects of longer-range discussions in NATO can perhaps be explored in prelim way with Petsche at it later mtg.
Fr indicated such proposal wld create great difficulties for them but did not reject it. Ministerial discussions continuing tomorrow afternoon.
Acheson
- Passed to OSR for Katz, repeated to London as 1961 for Spofford.↩