740.5/9–2051: Telegram
The Acting Secretary of State to the Embassy in France 1
1713. For MacArthur. Fol text agreement concluded Ottawa2 re sharing second slice infrastructure program.
“1. Arrangement contained this paper has been agreed upon to cover 21 tactical airfields and extensions (not including airfields in Germany) in SACEUR’s 1951 airfield program and signals program approved by SG as second slice signals infrastructure program.
2. Estimated figure of gross cost of 84,500,000 pounds is herein assumed be correct for purposes of foregoing formula, such figure however subject to adjustment from time to time as required by actual cost figures as they emerge.
3. From this figure of 84,500,000 pounds further estimated figure of 5,500,000 pounds shld be deducted as estimated cost of land and utilities for airfields portion of program. Actual cost of land and utilities for airfields will be provided by countries in which land located.
4. Arrangement for sharing estimated 79,000,000 pounds agreed upon as follows:—
| pounds | |
| (1) US | 38,000,000 |
| (2) France | 17,000,000 |
| (3) UK | 14,000,000 |
| (4) Canada | 3,500,000 |
| (5) Netherlands | 2,300,000 |
| (6) Belgium and Luxembourg | 4,200,000 |
5. Arrangement agreed upon as set forth in paragraph 4 hereof subject to fol two important conditions:—
- a.
- It is recognized that signals facilities to be erected will make available benefits to civilian economy, and in number of cases requirements of military will coincide with present and future civilian construction plans. It is not possible to estimate at this time exact portion of signal facilities which will be primarily for benefit of civilian econ. Accordingly it is understood and agreed that figures, derived from actual experience, which wld represent additional value to civilian economy of signals program, covered by paragraph 1 hereof, will be paid by host country and will be credited, in lieu of amortization, toward contributions of other member countries under formula for sharing future infrastructure programs.
- b.
- Member countries took note of fact that US here supports principle that it should not be called upon pay amount greater than amount contributed thereto by next two largest contributors, exclusive of amounts included for land and utilities and for civilian economic benefits. Member countries agreed that this principle should apply in future whenever practicable, as basis for negotiation, but taking into account finan and econ situation at time of parties concerned and results of studies now being carried out on equitable sharing of defense responsibilities.
6. It is expressly understood that proportions governing nat contributions agreed upon in pounds in paragraph 4 hereof, on basis of illustrative figure of 79,000,000 pounds will be applied as percentages to sharing of any adjustments in cost which develop in future when estimated cost figures became actual cost figures.
7. It is expressly understood that all construction shall be undertaken and carried out in accordance with standards established and rates of construction approved by govts and acceptable to SHAPE, and that locations and other technical details are to be acceptable to SHAPE and approved by govts.
8. Parties agree that they will negotiate method by which residual value, if any, of facilities referred to in para 1 hereof, will be treated when these facilities or any part thereof are no longer needed by mil forces of NATO.”
- Drafted by Frank E. Duvall of the Office of Operating Facilities and Robert G. Barnes, Deputy Director of the Executive Secretariat, and cleared with MacArthur.↩
- During the meeting of the North Atlantic Council in Ottawa on September 20, the delegations noted that the Council Deputies had reached agreement on the financing of the infrastructure program as stated in document D–D(51)248. The action of the Council is described in telegram Secto 32 from Ottawa, September 20, p. 683.↩