No. 200
740.5/12–1951: Telegram
The Ambassador in France (Bruce) to the Secretary of State 1
top secret niact
Paris, December 19, 1951—2 p.m.
3657. For immediate attention Perkins. Distribution by Secretary’s Office. Re Embtel 3606, Dec 17.2
- 1.
- Pleven and Mayer appeared before Finance Comite of National Assembly yesterday. According to MinFin sources, they informed Comite that govt intended to increase calendar 1952 milit budget to 1190 billion franc figure (NATO presentation) recommended by Executive Bureau of TCC. Govt intended, however, that budget be provisional for first two months of 1952. Mayer explained that TCC report also recognizes that a milit program in Fr larger than that permitted by a budget of this size was necessary. Accordingly, negotiations are still underway with US and other NATO nations to determine how additional expenditures, particularly expenditures for additional production and infrastructure, over and above that which Fr can finance out of 1190 billion franc budget, might be financed and how much of these expenditures might have a priority higher than other NATO expenditures. Mayer stressed that final decisions may not be reached until February action on TCC report and that Comite may not receive final budget until that time. Mayer had informed Labouisse of his intention to make statement along above lines Monday evening.
- 2.
- Pleven’s problem, however, is not resolved. Members on Finance Comite who are also on Defense Comite of National Assembly argued forcefully that figures presented to them did not agree with those submitted by Ministry of Defense as necessary for Fr milit establishments in 1952. Apparently they are not satisfied with presentation by Pleven and Mayer and stated that it wld probably be necessary for Minister of Finance and Minister of Defense to appear before Comite at same time. If Finance Comite makes its decision, discussions cld serve to exacerbate split in Fr Cabinet. Fr milit have refused to program at this level of expenditure so that we have no info on cutbacks in production and infra-structure [Page 462] underway that wld have to be made to keep milit expenditures within 1190 billion franc figure nor do we have info on possible reduction in Fr force commitments that may be necessary. Cabinet and Parliamentary reaction will be most serious when this info is available. Certainly Fr attitude toward Indochina operations and otherwise will be adversely affected.
- 3.
- There is possibilty that Cabinet might attempt to appease Bidault and his supporters by increasing temporary budget to 1280 billion francs on representation that US Govt has been asked by Fr to consider two measures proposed in para 8 of Embtel 3606. However, this concession is strongly opposed by Finance Ministry. Mayer stressed to us that presentation to Finance Comite might only temporarily alleviate Cabinet difficulties on this question and urged repeatedly that US Govt make quick decision on proposed measures.
- 4.
- I saw Monnet last night who said that following Mayer’s presentation Bidault had submitted a letter of resignation but had been induced to pocket it for time being. I had a similar experience with Bidault preceding evening. He feels that milit budget must be considerably higher but does not concern himself with how it wld be supplied with additional funds. His resignation at this period wld be exceedingly serious politically. I am trying to induce him to postpone any action of this nature at least until Lisbon meeting.
Bruce