740.5/10–951: Telegram
The Ambassador in France (Bruce) to the Secretary of State 1
2082. In conversation with Rene Mayer over week end he expressed same optimistic view of ratification of Schuman Plan and European Army as that reported by Pleven and Bidault in mytel 2043, Oct 6.2 He was preoccupied even more than Pleven with polit consequences that might follow from presentation to Parliament of 52 budget and balance of payments prospects. Levels of govt expenditures, of possible tax revenues, of econ activity and of [Page 429] imports were all interrelated and full picture of present situation wld have to be disclosed. Mayer stated that he was still engaged with Bidault in drawing up an interim military budget which wld be based on a minimum level of expenditures consistent with present engagements of France in connection with European def. He considered it unwise to attempt to do more until the Wisemen3 had completed their report and at least initial action on report had been taken in Rome or at a later NATO conf. He said that, of course, his decisions on import program at least for immediate period cld not await completion of this exercise and he was anxious to have a statement of our views on exact timing of US/French bilateral talks proposed for end of Oct. I replied that we had no definite instrs from Wash on timing of talks and suggested that French officials and Emb–ECA–MAAG team prepare background balance of payments and other info that wld be necessary when talks were undertaken.
Mayer said he wld also like to proceed urgently with talks on financial assistance to Indochina in order to complete aspects of Indochinese problem raised by General de Lattre in Wash.4 Mayer stated that it wld not be possible to submit even an interim budget consistent with French engagements in Eur if Indochinese expenditures borne by French Govt cld not be reduced to around 200 billion francs in 52.
Mayer also mentioned that his many econ and financial difficulties were complicated now by a tightening treasury position. He attributed this in part to recent increase in wages or civil servants necessity for various deficiency appropriations, subsidy for imported coal and an overoptimism with ref to tax receipts from corporations. He assumed MSA bill wld be signed in time for ECA mission to resume release of counterpart for end of Oct.
Mayer asked that US make an early regularization of its obligations under agreement reached in Ottawa on infrastructure, and touched upon his recent promise to Gen Eisenhower to use ECA counterpart for SHAPE housing. He is still hoping that he can obtain an early priority in shipping to permit delivery of additional coal French intend to purchase in US.
ECA mission and Emb are reporting more fully on status of each of above questions.
- Repeated to OSR.↩
- Not printed.↩
- For documentation on the organization and activities of the NATO Temporary Council Committee (TCC), see vol. iii, Part 1, pp. 1 ff.↩
- See footnote 4, Document 179.↩