740.5/4–251: Telegram

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

secret

Depto 707. Deputies 24th mtg April 2.

[Here follow brief reports on the Deputies’ discussion of financing NATO civilian and military agencies, approving financial regulations for an international budget, and agreeing on interim advances to the SHAPE budget.]

2. On FEB, adopted US proposal to convene ad hoc committee London April 10 to prepare recommendations on establishment agency under Deputies to coordinate financial and economic work NATO. Netherlands felt FEB shld be empowered to give guidance to DPB.

3. Re diversion of shipping noted report by Belgian deputy on WERPG agreement setting up national organizations in UK, Fr, Belgium, and Netherlands and recommending international coordinating agency. US and UK favored reference to PBO’s [PBOS?] to follow consideration by WU and other regional planning groups and advise deputies on extension to NATO basis of regionally developed plans but no action taken pending result expected reports by northern and southern planning groups.

4. Progressed toward final agreement on NATO reorganization, D–D(51)86 (separate telegram to Dept).2 All accepted US language on NAC with verbal change except France who intimated wld be able accept it shortly.

Netherlands agreed to word “guidance” in place of “direction” to describe deputies relation on political matters to SG, in light US statement that two terms synonymous and US willing incorporate each interpretation in minutes. Netherlands and Canada held this interpretation would supersede paragraph 16 of DPB, C–24/3 [ DC–24/3].3

Portugal reiterated insistence that deputies’ guidance to SG be channeled through MIL Rep Com. All other favored direct relationship deputies to SG.

Agreed that deputies shld take final action on NATO reorganization and next council mtg shld be under new terms reference.

Deputies will take up again Apr 9. UK said cabinet must consider final draft.

5. Chairman circulated for information NATO govts ISG statement of changes in existing industrial controls affected by new agreement [Page 114] which HICOMs Germany authorized to sign to replace present PLI agreement. (Sigto 573.4)

6. Agreed invite Vice Admiral Wright, new chairman SG, and Mr. Herod meet with deputies Wednesday April 4 to exchange views on SG matters.

Spofford
  1. Repeated to Paris for the Embassy and OSR, to the other NATO capitals, to Heidelberg for Handy, and to Wiesbaden for Norstad.
  2. The reference here is to telegram Depto 711, infra.
  3. See footnote 6, p. 70.
  4. Not printed; for text of the agreement dated April 3, concerning industrial controls, see p. 1395.