740.5 MAP/4–251: Telegram
The Secretary of State to the Office of the United States High Commissioner for Germany, at Frankfurt 1
priority
6625. Frankfurt pass Heildelberg eyes only for Handy and Spofford2 from Bonesteel as Dept’s 218.
1. Regret unable give you full outline proposed FY 52 foreign asst for NATO and OEEC countries in time for discussion this ECC mtg. Task Force I which is charged with drawing up this part program has not yet completed its preparatory work. However fol is status elements of program. MDAP end-item and training NATO countries approximately $4.8 billion. Stockpile to be built for end-items for NATO contingencies German forces, etc. near $1.0 bil. Economic support aid for NATO countries not yet firm but probably something under $2.0 bil including aid for DOTs. Economic assistance for non-NATO countries of OEEC $0.5 bil.
2. ECA programs have not been worked up against careful US estimates of total requirements MTDP. Total sums MDAP end-items based on broad NSC costing exercise last Dec with little relation financial condition recipient countries. ECA programs have [Page 112] been based generally on B/P approach assuming natl mil budgets of approx size assumed in Blue Books but not closely related requirements of MTDP.
3. Task Force I is proceeding with finalizing first approximations figures per para 2 above. However we have instituted urgent analysis total costs and allocations of tasks to meet reasonably balanced portion MTDP, i.e. a US exercise to meet appropriate amounts of gap between MTDP and DC 28. Simultaneously making urgent study, under Freund, to estimate reasonable production programs all Eur NATO countries related to projected end-item assistance. From these two studies we hope improve justification sums requested and have basis for final adjustments if these essential. Also to get better estimates raw materials required specifically for def efforts.
4. Several basic problems relating organization and admin of aid still unresolved. Hope get Presidential decision some of these 3 Apr and others by end of week. A principal problem is whether there should be one or two appropriations for MDAP–ECA aid and by what procedures such funds would be allocated.
5. There remains question our minds as to whether MDAP–ECA aid for NATO countries shld include specific conditions requiring reciprocal meeting of some sort of targets before increments of aid are disbursed. Wld greatly appreciate ECC views this subject (have seen Depto 6873). Is there any utility in thought aid might be conditioned on appropriate NATO recommendations that efforts are adequate perhaps tied in to US certification totals of intended efforts are adequate.
6. Balance of omnibus Foreign Aid bill contemplates end-item aid certain ME and Far East countries and some to Latin America; economic aid certain countries; widespread TA (Pt IV) with in some cases capital equipment grants to enable short range projects of maximum local public impact get under way. However major problem is question physical availabilities of materials and goods needed as exports from US and possibilities that in nine months or so, priorities will be needed on wide range of exports. Foreign Aid Programs must be closely coordinated with US National Defense Program in this regard.
7. Appears now unlikely Cong hearings can be started much before 1 May. Program papers are being pouched to Spofford for ECC.
Acheson
- Repeated to London, eyes only for Spofford, and to Paris, eyes only for Katz and MacArthur. Drafted by C. H. Bonesteel, 3d, Executive Director of the European Coordinating Committee, who was apparently on temporary duty in Washington. Cleared with Colonel Lincoln (Defense), Wood (ECA), and Ohly.↩
- Spofford was scheduled to be at Frankfurt for a meeting of the European Coordinating Committee (ECC) of which he was Chairman.↩
- Dated March 29, p. 105.↩