Foreign Relations of the United States, 1951, European Security and the German Question, Volume III, Part 1

740.5/5–1751: Telegram

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

secret

London, May 17, 1951—2 p. m.

Depto 940. ToISA. ECC to ISAC. At ECC mtg May 4 we considered problem of US allocation system for scarce raw materials and machine tools as relate Eur NAT requirements for mil production and reached fol conclusions:

1. While no evidence yet recd of serious delay in Eur mil production due to inability obtain machine tools from US or raw materials from US of which US buying heavily in world markets, believe importance Eur production programs as now conceived and/or on greater scale for which US continually pressing merit most careful review current US allocation policy with due consideration given MTDP time targets.

2. Until consolidated data on mil production and essential civilian requirements of both US and Eur are developed, we do not feel qualified to recommend precise changes in US allocations system or US buying practices. However, we urge prompt review these policies and practices which we understand from FSRC Doc 2² and discussions with Charles Wilson are under way.

3. Of basic importance to such review is, we believe, matter of maintaining consistency between allocations for buying policies on one hand and on the other, US major policy decisions concerning the magnitude of the effort which Eur shld undertake pursuant to the US policy that Eur can, with US help, defend itself but must do so with maximum self-help. We stress importance politically as well as militarily and economically of US pressing Eur for no greater effort than that which US prepared support by making possible adequate flow of essential materials and tools.

4. We believe equally strongly that liberalization allocations procedures shld be made dependent on increased Eur country efforts to increase production of critical materials and tools, to limit civilian consumption and exports to Sov bloc and, for countries controlling major sources, to establish their own allocations systems to assure other NAT countries adequate supplies for mil and other essential uses.

5. In addition to above suggested re-examination US policies, believe it important that operations of IMC be accelerated.

JAMC, SUSRep, Katz and Handy concur.

Spofford

1. Repeated to Paris for Katz, to Frankfurt, and to Heidelberg for Handy.
2. Not identified in Department of State files.