740.5/7–2750: Telegram
The United States Deputy Representative on the North Atlantic Council (Spofford) to the Secretary of State
top secret
London, July 27,
1950—10 p. m.
Depto 16. Report of third session1 NAC Deputies follows:
- 1.
- Continued discussion agenda item 6.
- a.
- Alphand proposed provisional financing arrangements to start production of staple military items. Long-term plans would require pooling of expenses in light each country’s financial situation, social conditions, and ability contribute.
- b.
- US introduced proposal reported Depto 15, July 27 stressing desirability using existing NAT machinery to expedite immediate increase in production priority items, and, in event complete agreement could not be reached by other NAT agencies within deadlines set, issues would at least be sharply defined for decision by deputies or NAC
- c.
- Several times Alphand urged studies should cover physical production capacity and mechanism for use of funds available in US as well as Europe. Spoke in terms of common NAT budget to meet common requirements of NAT forces, implying US production facilities and US funds should be available for production as determined by NAT authorities.
- d.
- Spofford pointed out present need was to put unused production capacity in Europe to use, US already fully using production capacity and converting from civilian uses, and large part US production being made available to Europe through MDAP.
- e.
- Alphand proposed Military Committee also indicate priority infrastructure projects for immediate implementation. Supported by UK. Spofford pointed out complications in defining infrastructure and suggested question would need longer study than possible within proposed timetable.
- f.
- Belgium proposed that, in view long stalemate in type of coordinated planning proposed by US, deputies must reach agreement on paragraph 3(d) Depto 15 (financing mechanism) before further action profitable. Spofford remarked action in all agencies should proceed concurrently and experts should be asked study technical, financial matters involved.
- g.
- Replying to question how US proposal fitted in with studies requested Depcirtel July 22, Spofford said latter was US request for broad indication of European military effort in future, former was US suggestion get immediate production under way through use NAT agencies. Two projects not inconsistent or conflicting.
- h.
- Deputies agreed reach final decision on US proposal at meeting afternoon July 28. Chairman PWS–MPSB authorized inform PWS of proposal at meeting morning July 28 without prejudice to final deputies action.
- 2.
- Deputies agreed recess after Friday meeting until Tuesday, giving time to consult governments.
- 3.
- No communiqué issued.
Sent Department Depto 16, repeated Paris info 148. Department pass Secretary Defense.
[Spofford]
- Third meeting, first session.↩