Foreign Relations of the United States, 1951, European Security and the German Question, Volume III, Part 1

740.5/7–2051: Telegram

The Secretary of State to the United States Deputy Representative on the North Atlantic Council (Spofford), at London¹

secret

Washington, August 1, 1951—8 p. m.

Todep 67. Pass to SUSRep. To ISA.

1. At joint ECC–ISAC mtg July 30 agreement reached to proceed immediately on program outlined in Todep 468² as modified by Depto 88.³ This will be one of several coordinated moves which include negotiating for use of counterpart funds for military procurement and development as soon as possible multilateral arrangements for financing DPB production programs, possibly using US counterpart. Further discussion this subject expected at joint ECC–ISAC mtg Aug. 1.

2. It is therefore requested that SUSRep in cooperation with DPB Coordinator prepare urgently program for US off-shore procurement of ammunition and spare parts as suggested in para 2 of Depto 88. It has been agreed that US will make known to NATO countries that in accordance with presently agreed procedures for consulting SUSRep it will seek recommendations from DPB and Coordinator on its off-shore procurement programs, and will follow them to maximum extent possible. Hence hope will be closest working relations with DPB Coordinator in developing these programs.

3. FYI only this is an initial step. Extension to other fields will depend on experience with these items.

4. This off-shore procurement program will utilize US end item funds, account to be taken of financial effects in line with para 3 b and c of Depto 88.

5. It was agreed that criteria set forth in para 3–a of Depto 88 wld apply primarily in the selection of recipient countries and that selection of producing countries shld be guided largely, though not exclusively, by production and efficiency considerations.

6. It is desired to proceed with this off-shore procurement program urgently. Def representatives are reviewing legal problems, such as those which have arisen in case of French electronics project in attempt to reduce procurement difficulties to minimum.

Acheson

1. Repeated to Paris for Katz and MacArthur and to Heidelberg for Handy. Martin (RA) drafted the telegram and cleared it with Halaby (ECA), Colonel Van Syckle (Defense), Bell (S/ISA), Gordon (White House), and Knapp (on temporary duty at Washington). Martin signed for the Secretary.
2. May 29, p. 168.
3. July 20, p. 223.