740.5 MAP/11–1351: Circular telegram
The Acting Secretary of State to Certain Diplomatic Offices 1
ToISA. This msg concurred State, Def, ECA. Approved Office of Director, Mutual Security. Note this tel for info not for immed action by country teams.
1. Country teams Oslo, Copenhagen, The Hague, Rome will shortly receive instrs for conduct of such prelim bilateral negots as countries may wish engage in for purpose reaching basic understandings far as possible at this time on amts of aid countries can count on during FY 1952 and on firm commitments by PCs to at least minimum levels of def efforts during same period.
2. Relation of such negots to TCC exercise and FEB burden-sharing exercise has received intensive study. During recent visit Harriman to Wash, agreement reached that prelim discussions bilaterally with countries cld not in many cases be held up pending outcome of TCC since many countries now making or about to make fundamental decisions on budgets, import programs, etc. for fiscal years beginning Jan, and that such decisions wld be greatly inhibited unless countries had some assurance soonest about amts of aid they might count on during this FY. Not considered feasible at this time place responsibility on FEB for quick multilateral division of aid since wld be difficult do more than superficial job within necessity for urgency in cases certain countries, and since FEB consideration shld take into acct results of TCC when those available. Idea is not eliminate FEB from consideration US aid in continuation its burden-sharing responsibilities but rather avoid double multilateral negots which wld be implied by FEB FY 1952 deliberations at same time in same place and with some of same people as TCC. When TCC reaches conclusive stages, appropriate for FEB consider whole question including TCC results along with any possibility at that time of additional US aid (which may be available from trans end-item to econ aid funds) that might be associated with enlarged def efforts during latter part this FY.
3. Thus no intention by-pass multilateral responsibilities but only to permit country actions go forward where necessary without waiting for TCC conclusion prior to understandings on US aid.
4. Consequently, intend proceed soonest negotiate bilaterally at least with those PCs which want to know what econ aid they can count [Page 350] on to proceed with def budget, letting of contracts, import programming, etc. Within limits of funds presently available for econ aid, we propose to make firmest assurances re US aid that can be justified on basis country commitments on levels of def effort. These negots wld also pin down gen agreement on use of counterpart, including mil uses. We wld also indicate our best expectations re offshore procurement and other US Govt dol expenditures in Eur.
5. We recognize our bargaining power for securing substantial increase in def plans as condition for FY 1952 aid is limited at present, both because of limited amt of aid available and because of necessity not attempt pre-judge TCC. Consequently, do not intend hold back any substantial part of econ aid funds now available. Believe therefore our aim shld be relatively simple and brief negots at this time principally aimed at basic commitments by countries on FY 1952 def levels. We shall furthermore generally be negotiating for a budget figure estimated on basis of econ analysis (natl accts, balance of payments, budget analysis, etc.) rather than an estimate of costs of present country force commitments or our view of what such country commitments shld be. This not intended preclude discussion composition and quality mil effort, which remains legitimate subj for discussion with PC. Point is that such discussion will not be conclusive prior TCC recommendations, and these aid negots shld consequently not be protracted in attempt reach detailed agreement.
6. Except reach Wash agreement on negotiating positions for most NATO countries within next ten days and communicate to country and region simultaneously, position becoming firm after regional and country comments received and taken into acct. Expect funds available for allotment by or soon after Nov 20.
7. Ideas expressed para 2 being discussed by Harriman with TCC and Bissell with FEB during week ending Nov 9.
- Drafted by T. C. Schelling of the Office of the Director of the Mutual Security Agency, and cleared with Gordon of ECA, Martin of RA, and Colonel Van Syckle of Defense; sent to Brussels, The Hague, Oslo, Copenhagen, Rome, London pass Spofford, and Paris pass OSR. An earlier draft of this same telegram was sent to London as Todep 311 on November 7 and repeated to Paris and Heidelberg. The draft was approved by the ECC, as requested by the Department of State, and then issued as this circular telegram.↩