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

751.5 MAP/11–1050

The Secretary of State to the Embassy in France

priority

[Washington,] November 10, 1950—7 p. m.

2534. Tomap. From FMACC. Treas concurs.

1. Reps of Dept and other interested agencies now engaged in series conversations with Fr reps here re draft of aide-mémoire.¹ Purpose has been make sure common understanding exists of terms. Revisions under study here. Fr have been told we expect formal acceptance of aide-mémoire. No action to implement shld be taken in advance of finalization and acceptance (urtel 2330 Oct 28).² [Here follows a textual reference to the draft of October 19, not printed; for the final text, see page 1446.]

2. Aide-mémoire involves interests and responsibilities several US agencies. US position being developed by State in close consultation with other agencies. Implementation will similarly involve these agencies. Aide-mémoire envisages grant of aid based upon US understanding that Fr Govt undertaking general prog principle [principal] elements of which are cited para 4 below. While it is important observe and report on performance with re[spect] each element US judgment as to whether performance satisfactory and as to further US action required must necessarily be based upon balanced consideration totality Fr performance with respect all elements. Consequently Wash looks to Amb to develop, in close consultation with reps various US agencies, coordinated and balanced reporting and recommendations as to Fr performance and US actions. FMACC urgently addressing prob extent to which revised procedures and assignment responsibilities are required by enlarged prog and as decisions reached further instructions will be forthcoming. Unless and until such further instructions are forthcoming, implementation of aid program contemplated for Fr in aide-mémoire will be thru MDAP and existing FMACC policies re communications channels shld be applied (Refer doc. MAP D–Fa).³

3. We assume that discussions with Fr opposites subjs listed in item 2 urtel 2330⁴ will be for purposes obtaining info and reporting to Wash. Since many aspects these subjs are being discussed multilaterally and also involve polit, econ and mil considerations, essential that any guidance thereon given Fr Govt shld first be carefully considered by Amb and Wash. In view fact this initial assist to Fr, as stated in aide-mémoire, is clearly an interim measure pending NATO action on distribution burden MTDP any arrangements in Paris shld be informal in character and susceptible easy adaptation to arrangements finally agreed upon, multilaterally and bilat, for insuring implementation MTDP. In any case believe important leave Fr with sense full responsibility for taking actions necessary prevention inflation. Must not interject our views in such detail or in such manner they will not feel need put forth their efforts in behalf truly Fr prog, or that they can with any validity say they did all we asked and hence that any failures are our responsibility and must be corrected by additional US funds.

4. Subjs proposed for discussion with Fr do not include all matters mentioned in aide-mémoire on which Amb shld be informed. As indicated therein, amt and kind US aid to Fr predicated on understanding Fr Govt intends: (a) proceed during 1951 with milit effort, both in Fr and in overseas territories, including IC, substantially conforming in size and scope to that which it has presented; (b) execute promptly the HPPP recommended for implementation in Fr by approp NAT bodies; (c) conduct further discussions with US reps re Fr def prog as it is developed and refined; (d) take vigorous measures combat inflationary pressures by all approp means including necessary adjustments import and credit policies.

5. Items (a) (b) and (c) in aide-mémoire are each as important as item (d). In addition to subjs proposed urtel 2330 we believe that other immed and basic probs on which info and recommendations to Wash shld be developed are:

(a) to ascertain scope and character of Fr def effort in Fr and IC contemplated in 1951.

(b) to review Fr proposals and recommend ways and means obtaining prompt implementation Fr HPPP.

(c) to appraise timing of probable inflationary impact of Fr def effort with view recommending measures, including timing US aid, offset these adverse develops. Wash expects provide guidance offshore procurement procedures at early date urtel 2253 Oct 25.⁵

(d) to recommend measures designed to coordinate Fr prod prog with US ent [end] item prog for Fr.

(e) to explore ways in which Fr can contribute to solution trans prob as represented particularly by excess and unutilized prod capacity of W Ger and Ital. [FMACC]

Acheson

1. The aide-mémoire referred to by Mr. Acheson in the meeting of October 17, p. 1424.
2. Not printed: it outlined various economic and financial topics on which the Embassy proposed to begin preliminary conversations with French officials.
3. Not printed.
4. This section referred to proposed conversations on the French external financial position and on French policies with regard to imports, exports, exchange controls, and fiscal and credit controls to curb inflation.
5. Not printed.