Foreign Relations of the United States, 1950, Western Europe, Volume III

740.5/11–850: Telegram

The United States Deputy Representative on the North Atlantic Council (Spofford) to the Secretary of State

secret
priority

London, November 8, 1950—7 p. m.

Depto 156. At tenth meeting November 7 productivity experts approved report for submission WG 7 deputies November 9.¹ If WG approves ninth, hopeful meeting council deputies will consider and adopt report during meetings week November 13. Formal clearance with DefCom can then be requested as suggested Todep 78.² [PWS] has participated fully in preparation experts report. Will also suggest that WG when approving report send copies to MPSB for information and comment.

Report as approved summarizes accomplishments MPSB despite lack clear statements quantitative and qualitative military requirements and clear commitments that funds available to finance production these requirements. This summary results in following conclusions:

1. Present level NATO military production and present status programs for increasing production fall far short of what must be done to fulfill defense plans.

2. No NATO military production body can do satisfactory job without at least tentative lists acceptable types of equipment and time phased quantitative requirements and commitments for necessary production finance.

3. Number of organizational changes in NATO military production body are desirable. If these changes made and if above conditions met, NATO’s chances of achieving desired military production levels will be greatly improved.

Report then makes following recommendations on reorganization MPSB:

1. MPSB reorganised into defense production board consisting representatives all NATO nations desiring membership. Representatives will be regularly available London. Board elects own chairman. (FYI Britain may propose Thursday that deputies reserve powers decide how chairman appointed.)

2. Board’s mission to achieve maximum production military equipment in most efficient manner, at least cost, in shortest time to meet NATO requirements. This would be accomplished by coordinating national programs so that together they equal NATO production goals, by planning integrated programs under which nations produce some items and components for others and accept some items and components from others, and by taking all other suitable actions.

3. Board will concentrate on major production programs involving important problems in international cooperation and will also consider utilizing capacity in non-NATO countries.

[Here follow a listing of the Report’s contents including specific functions for the Board; details of staffing, procedure and liaison with other bodies; and broad statements of principle.]

Sent Department Depto 156, repeated info Paris 837 for OSR. Pass to defense Munitions Board and ECA for Hala.

[Spofford]

1. The names of these experts assigned to the Working Group of Seven (see Depto 116, October 20, p. 399) are listed in Appendix A of the “Report by the Production Experts to the Working Group,” Document WGPF–D/5 (Final). This report, not printed, dated November 7, 1950, with related documentation of early developments in establishment of the Defense Production Board, is in the S/ISA Files, Lot 52–26, WG—Def. Prod. Brd.
2. Not printed.