441.62A31/2–2850: Telegram

The Chargé in the United Kingdom ( Holmes ) to the Secretary of State

secret

1136. Embtel 1054, February 24, repeated Paris 303, HICOG 79.1 Because of elections I was only able to see Bevin this morning. He began interview by referring to exchange of personal messages with Secretary and said that he had received confidential report from Germany that American officials, presumably subordinates, had recommended to Germans that they not conclude trade agreement with UK on basis of sterling administrative transfer accounts system. He said that they were trying to work out an over-all European payments plan to include Germans entirely consistent with Secretary’s message; that he felt it was harmful to both US and UK to appeal in these matters to the Germans who will seize every opportunity to drive a wedge between us if they can. He said that the British attempt to come to an agreement with West Germany was to make progress improving trade and payments in Western Europe and held forth at some length about the necessity of bringing Germany into the whole Western European complex. He felt that the unilateral approach by US officials to the Germans in this connection was harmful. I told Mr. Bevin that a report from McCloy had indicated that the Germans had voluntarily stated that they were not inclined to go too fast with the agreement as proposed by UK and that we had no indication of persuasion by US officials in this connection.

Bevin was critical of ECA and of Hoffman and Harriman,2 saying that their attempt to set a long-range European pattern in his opinion [Page 606] would not be fruitful; that the situation in Western Europe is such that arrangements can only be made for a year or 18 months in advance because of changes and unpredictable future conditions. He delivered an abbreviated version of his “step by step” philosophy. Bevin went on to say that he felt that often times political, strategic and economic policies did not march together and that he felt that the time was come when there should be another general meeting to reconcile our position.

He went on to say that he expected to write to the Secretary today suggesting that his original proposal for a tripartite meeting some time in March or April should be reconsidered and that the meeting should occur somewhat later.3 He gave as his principal reason for suggesting postponement the unsettled condition in France. He made no mention of the existing British political situation.

Sent Department 1136, repeated Paris 320, Frankfort 85.

Holmes
  1. Not printed; it reported that Secretary Acheson’s message (see editorial note, p. 602) had been delivered to Bevin and that Holmes had an appointment with the Foreign Secretary on February 27 (762.00/2–2450).
  2. Paul G. Hoffman, Administrator of the Economic Cooperation Administration, and W. Averelt Harriman, Special Representative of the Economic Cooperation Administration in Europe.
  3. For documentation on the genesis of the May tripartite Foreign Ministers meeting, see vol. iii, pp. 828 ff.