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

441.62A31/2–1850: Telegram

The Acting United States Special Representative in Europe ( Katz ) to the Secretary of State

secret

Paris , February 18, 1950—2 p. m.

Repsec 11. Reference: (a) Department 705 to London, repeated Paris 628.¹ (b) London 911 to Department, repeated Paris 264.

1. We have studied Bevin’s message Secretary of State with great interest. With regard to numbered paragraph 4, reftel (a), we wish make it clear that we have adhered to position concerning payments union and FINEBEL as set forth Repto 669,² February 4; repeated London Repto 116, and Repto 687,³ February 6, repeated to FINEBEL countries. The nub of our position set forth first paragraph Repto 669 which reads as follows:

“Since your departure, further discussions here with French officials and within OSR, French Mission, and Embassy have convinced us that no useful results from efforts toward EPU minus or FINEBEL plus possible soon enough to make such efforts wise or practical. We will, therefore, continue emphasis on all-inclusive EPU, pressing forward on basis that this can be achieved in good time. Although bearing in mind and prepared give effect Hoffman’s statement of support, if necessary, for EPU involving less than all, we believe undesirable make any further statements to that effect at this time. In view recent confusion, feel it important keep our position clear and simple.”

2. As indicated Repto 687, confidential oral statement of our position concerning FINEBEL was delivered to French, Belgian, Dutch and Italian Governments and copy was made available to Cripps on informal basis by ECA Mission to London. We have been at least as aware as British of undesirability “permanent division between sterling area and perhaps Scandinavia on the one hand and FINEBEL countries on the other.”

3. OSR staff under instructions carry forward development all-inclusive payments union in every practicable way.

4. We are encouraged by Bevin’s message and by views expressed to Stikker by Bevin and Cripps as indications British awareness danger in position to which Cripps has hitherto largely adhered not only in current consideration EPU but also last summer in discussion Intra-European Payments Agreement now in force.

Sent Department Repsec 11; repeated London personal for Holmes and Moffat⁴ Repto 153. Personal for Hoffman, Harriman and Foster.⁵

Katz

1. See footnotes 1 and 2, p. 630.
2. Not printed. See footnote 1, p. 625.
3. Not printed.
4. Abbot L. Moffat, Chief of the Trade Division, ECA Mission, London.
5. William C. Foster, Deputy Administrator, ECA.