ECA message files, FRC 53 A 278, Paris Torep, telegram

The Administrator for Economic Cooperation (Foster) to the United States Special Representative in Europe (Katz)1 at Paris


Torep 143. 1. Pres. signed on Dec. 19 memo of understanding2 between Depts. State, Treas., Defense and ECA on organizational arrangements within US Govt. for policy and implementation re international security arrangements and mil. and econ. assistance for mutual defense.

2. This document provides review and coordination of policy and program among interested agencies shall be through high level Committee on International Security Affairs, consisting State, Def., Treas., ECA and Harriman office reps., with State rep. as chairman. FYI. State rep. is Thomas Cabot, ECA rep. is N. E. Halaby, other agency representatives not yet designated.3 Committee expected to hold first mtg. shortly.

3. Document provides “it is essential that operating responsibility be delegated to greatest possible extent to those agencies which are equipped to handle it”, and further that “ECA shall have primary responsibility for developing and implementing plans for economic assistance required to support an adequate defense effort abroad, and for implementing approved programs for addl. mil. product. abroad”.

4. Copies this document being airpouched, but above provisions set forth in order guide OSR and Missions in taking immediate steps increase their participation in development plans for economic support European rearmament effort.

5. Specifically, it is view ECA/W that missions backstopped by OSR must play new and important role, in close cooperation Embassy and MAAG, in negots. with NAT countries re increased defense effort (including raising and maintaining troops and mil. production) and should provide initiative in developing econ judgment as to amt MDAP econ. support funds required accomplish desired results. This connection missions should regard all Tomap cables raising econ. and [Page 22] financial issues as priority action matters. Recognize that in present atmosphere lack of detailed definition agency responsibilities much of mission work must be on ad hoc basis, but strongly urge that missions use own judgment in applying their best talents towards meeting pressing problem of securing maximum defense effort abroad.

6. Econ. support programming now entering stage where different kinds competence required in field than heretofore, particularly in area of mil. product. Urge Chiefs of Missions and OSR give immediate attention possible staffing needs this regard. Production problem relates not only to programming for US financing but to priority assistance as well. Missions and MAAGs must work in closest cooperation this matter.

7. This cable primarily addressed to immediate problem negots. now in progress in connection MDAP financing. Separate instructions forthcoming on relationship ERP allotments to European defense efforts.

8. These bilateral approaches to governments must be geared with US actions in NATO and in coming weeks developments in Deps, WG 12 and DPB will be important matters for Missions to consider.

  1. Authorized by N. E. Halaby of ECA, drafted by Norman S. Paul of ISA. Cleared in draft by Deputy ECA Administrator Bissell and by Assistant ECA Administrator for Programs Porter. Cleared in substance by Only, Bell, and Martin of the Department of State. Repeated to ECA missions in all NATO countries. All telegrams from ECA Washington to the Office of the Special Representative in Europe were addressed to and sent via the Embassy in France. All telegrams from ECA Washington to the various European ECA missions were addressed to and sent via the Embassies in the countries in which the respective missions were located.
  2. For text, see Foreign Relations, 1950, vol. i, p. 484.
  3. Effective January 8, 1951, the position of Director, International Security Affairs, was established in the Department of State and took up the personnel, records, and functions of the Office of the Director, Mutual Defense Assistance. For a description of the duties of ISA, see the Department of State Bulletin, January 22, 1951, p. 155.