740.5/11–2151: Telegram
The Secretary of State to the Acting Secretary of State
3049. For Webb from Acheson and Harriman. Referring Deptel 2999,1 commitment given French at mtg Pleven on Friday morning (Embtel 29672) was assurance that $600 million (excluding possible $50 million ExIm Bank cotton loan) of expenditures wld be achieved in France before June 30, 1952, through one means or another, provided French did necessary things with respect to bases and other facilities, and on assumption French come up with adequate contribution to defense of West Eur within the overall NATO framework being developed by TCC and continue Indochina effort. No indication given re specific breakdown of figure, but understanding on US side was that it might possibly be $300 million econ aid and $300 million US military expenditures. Our view was that to extent military expenditures shld exceed $300 million, we cld reduce econ aid figure. It was not contemplated by us that econ aid [Page 447] wld exceed $300 million. Consequently do not envisage asking for transfer to France under Section 101(b) of more than $180 million and then only on conditions and assumptions set forth above.
Any action with respect to a possible transfer shld be held in abeyance pending further word from Mr. Harriman, which will follow discussion between him and Secy Def.
Pls bring this to President’s attention.3