740.5/4–551: Circular telegram
The Secretary of State to Certain Diplomatic Offices 1
590. Dept considering question whether “Buy-at-home” laws, regs, or practices in NATO countries may be significant factor in preventing use by any such country of idle productive facilities or available goods in other countries which might contribute to joint defense. Restrictions of this type may be applicable to (a) purchases by Govt bureaus for Govt use; (b) purchases by nationalized cos for use or re-sale; (c) purchases by private cos working on Govt contracts. Can take any of several forms, ranging from absolute requirement that domestic sources be favored, irrespective of price, other considerations, to gen direction that domestic sources be favored within limits.
From fragmentary data at hand, Dept unable appraise scope of problem and concerned that it may have real importance. Appreciate your prelim appraisal within next two weeks of importance of problem in country you accredited, indicating types of procurement most affected, form which restrictions take. If problem appears significant, appreciate fuller follow up reports as available.
Urinfo, Pres authorized suspend Buy Amer provisions US statutes during present emergency and efforts now being made insure such provisions do not in practice impede US mobilization efforts.
- This telegram, sent to the capitals of the other NATO countries, was drafted by Vernon (CP) and Reifman (DRW) and cleared in substance by Asher (RA).↩