No. 203
751.5–MSP/12–2651: Telegram
The Director of the Planning Staff of the Bureau of European Affairs (Labouisse) to the Economic Cooperation Administrator (Foster)1
secret priority
Paris, December 26, 1951—10 p.m.
Toeca 1677. ECA/Wash personal for Bissell from Labouisse; OSR, personal for Porter. Toisa.
- 1.
- Immed fol tel2 contains text of draft memo of understanding which I propose be initialled by French and ourselves and serve as record of recent series of bilateral talks.
- 2.
- I gave this draft on purely informal basis to Clermont-Tonnerre December 24, and he is now examining it. I explained that draft memo had been seen only by Timmons and me and had not been cleared on our side and that we wld undoubtedly have changes to suggest, as wld he. Several points in memo are not yet finally agreed by French.
- 3.
- I believe that most of draft text is self-explanatory. However, we will telegraph separately with respect to section on counterpart.3
- 4.
- We have not yet recd list of productivity uses to which 12.5 bil francs in counterpart wld be allocated. We wld of course not initial memo of understanding until satisfactory list agreed upon.
- 5.
- We are also awaiting comprehensive statement from French on their econ and fin policies, and likewise propose withholding our agreement until such statement is forthcoming. Points which we understand French will cover in statement include such matters as monopolistic practices, credit controls, taxes.
- 6.
- In conclusion, I feel that the major objective of our bilateral negots with France has been achieved, with their agreement to a def budget equivalent, in NATO terms, to the figure contained in the TCC recommendation. Further, in our numerous discussions with French on other points, such as productivity and infrastructure, I sense real willingness to move forward along lines we desire. We fully recognize, however, that these good intentions cld be frustrated by any one of a number of possible developments. Having obtained general commitments and understandings, it remains for us to work closely with Fr to aid and encourage them in transforming their pledges into concrete programs. It is in this [Page 475] light that I hope you will consider draft memo. I realize that various special interests may not feel that details are sufficiently spelled out, but it was clearly impossible to do so and conclude the bilateral discussions within any reasonable period of time. I feel that memo gives us useful base from which we can work with Fr in elaboration of programs (exam of content of mil budget, productivity etc) and resolution of difficulties, reminding Fr as necessary of their general undertakings. I believe it is good strategy to conclude present discussions as rapidly as possible in order detailed implementation may begin. I wld therefore strongly urge that you send me clearance by end present week, in order that I can in turn urge Fr to reach remaining decisions on their side and be ready to initial memo end this week or immed after New Year’s. In giving us clearance for memo along general lines our draft, or as you may wish it revised, hope you will accept necessity for granting maximum flexibility in agreeing changes this end.
Labouisse