No. 199
851.00/12–1851: Telegram
The Ambassador in France (Bruce) to the Secretary of State
confidential
Paris, December 18, 1951—3 p.m.
3624. Pass Treas and ECA/W. Re Paris Deptel 3383, Dec 7, rptd info London 2829.1
- 1.
- On basis US assurance re dollar availabilities totaling $600 million during FY 51/52 Fr Govt has again expanded 51/52 dol import program to $825 million as compared $500 million figure announced by Rene Mayer to Parliament Nov 16 (Paris Embtel 2966, Nov 182). We understand Fr del to GATT Mtgs in London being instructed to state that present policy of Fr Govt towards dol imports will be substantially same as during past year. Fr import program of around 825 million dols shld permit them to keep flow of dol imports at approx same level as that registered during ’51. They stress, however, that they must slow down issuance of import licenses for time being, because present flow of dols forces them to live on a day-to-day basis. Their assumption is this will improve when final arrangements made with US Govt on econ aid and US mil expenditures but given precarious foreign exchange sitn, their policy towards dol imports must be subj to frequent re-examination. Del further instructed to give assurance responsible Fr authorities will do everything possible to avoid curtailments. Details of sitn being announced in ECA messages. (See Paris Toeca 1642, Dec 17, rptd info Paris Torep 1964 and Paris Toeca 1643, Dec 18, rptd info Torep.3)
- 2.
- Fr have repeatedly pressed us on necessity for UK, Germany and Neths to restore liberalization of their trade. They are not now actively giving consideration to reimposition of restrictions on EPU trade themselves but fear they may ultimately be forced to do so. On internatl plane, they feel decision by France to go back on trade liberalization, fol upon announcement intensification of Brit restrictions, wld be signal for other members OEEC to take similar action and wld thus mean virtual collapse of entire program. Domestically they fear that if quantitative restrictions are restored, strong protectionist interests in French economy wld be in advantageous position to block new moves towards liberalization even if improvement of foreign exchange sitn shld remove cause for which liberalization measures were revoked.
Bruce