851G.00/3–1450: Telegram

The Ambassador in France (Bruce) to the Secretary of State


1204. During their talk this morning Bidault told Jessup that he would send him memorandum concerning aid to Indochina which he then had on his desk for approval.

[Page 762]

Document of which translation follows just received: The French Government entertains the following views concerning the conditions under which the economic aid which the US Government contemplates granting to Indochina might take place.

In view of the relationships which exist between France on the one hand and the Associated States on the other in the framework of the French Union, the French Government considers it desirable that the agreements relative to economic aid should be signed by the 3 Associated States and countersigned by France. It considers it preferable that the agreements be embodied in documents which are common to the 3 states rather than instruments particular to each one of them.
It appears essential that the local French authorities should be closely associated in the management and distribution of American aid. To this end it contemplates the establishment of a joint quadripartite service wherein France and each of the associated states would be represented. The contemplated procedure appears necessary in order to insure the most efficient use of the aid and its distribution under conditions conforming closely to the interests of the three states. This procedure is moreover in harmony with the spirit of the agreement between France and the Associated States and in which each one of the latter has recognized that it has common interests in the economic and financial fields with each of the two others and with the French Union.
In the light of the experience gained in the implementation of the economic assistance program to France, the French Government believes that the import operations to be effected from the assistance funds should be handled through private trade channels.

Sent Department 1204, Department pass Saigon 67.