740.5/7–2750: Telegram
The United States Deputy Representative on the North Atlantic Council (Spofford) to the Secretary of State
priority
Depto 15. 1. At meeting today, US delegation made following proposal for action by the Council to make earliest possible use of increases in defense funds for military production.
2. Begin proposal:
The US Government has asked the cooperation other NAT governments in each giving it, on a most urgent basis, the firmest possible statement of the nature and extent of increased effort each proposes to make, in terms of increases in both forces and military production. Request was made in order to aid US Government in justifying before the Congress a request for substantial additional funds for military assistance. These initial requests made directly to governments because of extreme urgency with which the information is needed, but it is expected that the NAT organization will be used to the utmost in further developments.
3. In order that the Council of Deputies may address itself to the task of determining how additional funds, to be provided by the member governments, can best and most speedily be utilized to achieve a step-up in the activities of the NAT organization, the following course of action, with particular emphasis on the increasing of military production in Europe, is proposed:
- a.
- Deputies should agree prior to September Council meeting on a recommendation to governments on an initial program for high priority production and the amounts and methods of its financing which will make most efficient use of additional funds available for European military production. This will involve the deputies making agreed recommendations to governments to assure the solution of the problem of transferring from one country to another newly produced military arms and equipment and materials for their production. These programs should be linked with the increase of defense forces now being calculated for the medium term defense plan, the first approximation of these force levels having been approved at The [Page 146] Hague on April 1st by the Defense Committee. It is therefore recommended that the deputies request the Military Committee, the MPSB, and the DFEC to take action as enumerated in the following paragraphs. This initial high priority program would be designed to avoid any loss of time. It should not be permitted to delay the completion of the tasks already assigned for the development of long-range production and financing plans based on more adequate financing and on the results of work now in progress in other NAT agencies.
- b.
- Military Committee. Through the medium of the standing group to produce as soon as possible and not later than August 15 a report giving a best estimate of additional quantities of highest priority equipment sure to be needed under any version of the medium term defense plan. This estimate should be related, as practicable, to the production categories of equipment established by the MPSB. The report should, so far as possible, include specific indications of the types of equipment, i.e., the precise types of tanks, of aircraft, anti-tank weapons, et cetera required for production.
- c.
- MPSB. The PWS of the MPSB to make a report by 23 August which shall include the best estimate possible in that short time of physical production capacity in Europe which should be utilized for production of items recommended by the standing group under (b) above which are currently in production or are planned for production. The foregoing assumes that provision of funds and financial arrangements are being worked out. Insofar as possible this report should also recommend allocations of production of these high priority items as between countries. The action required in connection with formulating this report is not intended to affect the decision of the MPSB taken at Copenhagen to set up end item task forces to accelerate production of narrow categories of high priority equipment. The MPSB and governments should be requested, however, to expedite and facilitate the formation and action of the task forces.
- d.
- DFEC. The PWS of the DFEC to make a report by 25 August recommending specific mechanisms for utilization of the funds made available by all NAT countries for military production in Europe, so as to permit most effective and efficient production.
4. NAT committees involved will be expected to maintain the closest working liaison at all times. The above three reports will be transmitted to the Council Deputies and to the other NAT bodies as soon as produced. The deputies will endeavor, in close cooperation with the MPSB, to consolidate the reports into an initial high priority production program which can be recommended to governments for immediate implementation. These recommendations should also be reported to the Council of Ministers at their meeting in September.
Sent Department Depto 15, repeated info Paris 147, Brussels 22 (pass Luxembourg), The Hague 24, Rome 35, Olso 10, Copenhagen 15, Lisbon 7, Ottawa 4, Frankfort 89, Reykjavik 3. Department pass to US Representative Standing Group.