740.5/1–351: Telegram

The Secretary of State to the United States Deputy Representative on the North Atlantic Council ( Spofford ), at London 1


Todep 193. (1) Knapp is being fully briefed on Washington views re NATO-OEEC consolidation. While this matter becoming increasingly urgent, no further progress toward decision contemplated until your views received, which hope can be soon.

(2) Meanwhile, believe mtg Financial Experts2 scheduled Jan 4 might as well proceed if only to elicit views European members on principle of bringing all NATO economic and financial staff work under direct supervision of Deputies. European experts will presumably have consulted their Finance Ministers on this subject which will remain a problem under any form of NATOOEEC consolidation.

(3) In view present discussion of more basic reorganization, US rep shld oppose any final decisions or referrals to Depts. US rep shld feel free to express US view that some basic reorganization and consolidation of NATOOEEC is likely prove necessary in near future. Until time schedule for such consolidation becomes clear, however, [Page 10] US rep shld keep door open for possible adoption interim solution along lines Depto 305.3 Our views on latter question will take into account reaction European reps at Jan 4 mtg.

  1. Repeated to Paris with instruction to pass to OSR. J. Burke Knapp of the Office of European Regional Affairs drafted the telegram and Edwin Martin, Director of that Office, cleared the message in substance with ECA.
  2. Presumably the Working Group on Production and Finance (the so-called Working Group of Seven), meeting in London and composed of seven of the Council Deputies.
  3. December 9, 1950, not printed; it presented the texts of a draft resolution and draft report on the proposed reorganization of NATO’s financial and economic procedure. These drafts, presumably drawn up by the Working Group of Seven, were intended to stimulate comment from the NATO governments. (740.5/12–950)