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

740.5/6–1050: Telegram

The Ambassador in the United Kingdom ( Douglas ) to the Secretary of State

top secret

London , June 10, 1950—5 p. m.

3278. Secretary from Ambassador; Department pass to Bonesteel and Breithut.

1. WU countries now report able to provide 28 million pounds sterling for financing 33 million infrastructure program, that is, certain support facilities such as airfields, communications and headquarters considered high priority by WU. This represents considerable progress since middle of May when financial availabilities estimated at 20 million pounds.¹

[Here follow the descriptions of a conditional agreement among the Western Union powers on distribution of the costs of the 33 million pounds sterling infrastructure program and of alternative plans to cover possible shortages on the part of France and the Netherlands.]

5. In view WU progress outlined above, and of further possibilities fully financing infrastructure without MDAP aid, recommend US await developments and take positive action encourage WU, specifically French and Dutch solve this financing problem among selves. Further recommend that US not at this time offer encouragement that MDAP aid might be forthcoming for this purpose. Recognize consideration and provision MDAP aid other possible advantages: (a) advancement NAT planning through relation of a specific WU plan to NAT; (b) establishing precedent for provision MDAP aid to meet joint regional requirements rather than on bilateral basis to individual countries. Believe weight should be given, however, to desirability of WU solving own problems so far as possible and to possible delays involved in processing MDAP aid (endorsement high priority by standing group; ascertainment of requirements from and availabilities in, US; changes in MDAP programming; agreements and administrative arrangements if aid given on multilateral basis) which might delay completion of infrastructure program.

6. Memorandum of fuller explanation recent WU developments this question being pouched.²

Sent Department 3278, repeated information Paris 1010 for Embassy and Harriman, The Hague 136, Frankfort unnumbered. Pass Heidelberg 150 for Handy.

Douglas

1. In his telegram Repsec 23, June 3, from Paris, not printed, Harriman had called attention to this possible shortage of funds and had recommended a “full scale US effort to break deadlock.” (740.5/6–350)
2. Not printed.