741.5/12–2950: Telegram
The Ambassador in the United Kingdom (Gifford) to the Secretary of State
3651. For Perkins and Ohly. Robert Hall, Chief Economic Advisor to Cabinet and actively involved in defense planning, today informed Embassy officer in strictest confidence that plans for expanding British additional defense production (Depcirctel 314, December 261) program, which Cabinet is now considering, include following major points: [Page 888]
- 1.
- Recommendation of military staff chiefs that total program for fiscal years 1952, 1953, 1954 should be double pre-Korea defense budget or about pounds 4,600 million and that amount of original pounds 3,600 million program which was scheduled for completion at end fiscal year 1954 should be completed at end fiscal year 1952.
- 2.
- Imposition of priorities on industry to get quick action on defense contracts and force shift from civilian to defense production to extent necessary to accomplish above objectives.
- 3.
- Allocation of materials to accomplish those objectives and, to extent necessary, to curtail use of labor for civilian production thus creating additional labor required for expanded defense program. Hall personally believes government will, if necessary, seek additional statutory authority to direct labor if insufficient labor made available as result operation of allocation system.
Hall intimated that attitude of some Ministers on expanding defense production reflects lack of sense of urgency in some sectors of public opinion and he believes government will attempt more actively to “educate” public to existing dangers. He is convinced that Prime Minister is fully aware of dangers and of need to expand defense production to more adequate level and will take necessary steps to do so as rapidly as possible.
Hall said effort being made reach Cabinet decision on expansion defense effort in very near future.
Circulation this telegram should be closely restricted. Spofford informed.
- Circular telegram 314 transmitted, inter alia, background information on General Eisenhower’s forthcoming European tour of NATO capitals and Germany and asked for the latest data on military planning and production. (740.5/12–2650) For documentation on General Eisenhower’s European trip, see vol. iii, Part 1, pp. 392 ff.↩