No. 437

611.41/5–1151: Telegram

The Ambassador in the United Kingdom (Gifford) to the Secretary of State 1

secret

5910. 1. Purpose of this msg is to reappraise Brit attitudes towards US in light developments since Embtel 4928, March 14.2

2. Up until roughly three weeks ago there had been improvement in situation described reftel and it appeared that customary upswing from a period of low such as that of Jan was taking place. Principle reasons for this amelioration were:

(a) Focus on Domestic Scene.

Attention of Brit people was becoming increasingly concentrated on internal question. Pre-Easter Tory offensive and expectation of politically controversial budget seemed to bring prospect of early gen election closer with consequent heightening interest in natl politics. Increasing cost of living, meat and coal shortages and rainiest winter in 80 years also tended to push foreign affairs into background.

(b) Replacement of MacArthur.

President’s action was welcomed by great majority Brit people as foreshadowing material lessening possibility spread Korean war. In addition Brit derived much quiet satisfaction from their unjustified belief that they had played a part in securing his removal with concomitant boosts to their self-esteem.

(c) Paris Exploratory Talks.

Fact that Deputies were mtg in itself removed earlier doubts here re US willingness to take part in any talks with Soviet. Moreover, continuance talks despite lack real progress kept alive hopes for FonMins conference and ipso facto some possibility East-West settlement or at least diminution of tension.

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(d) “American Admiral”.

With incident largely closed, irritation at US over issue had largely blown over and such rancor as remained was directed at UK Govt for having failed to protect Britain’s interests rather than against US.

(e) Far East Policy.

Although differences between UK and US on Far East issues such as Formosa, admission CPG to UN, question Chi representation Japanese peace treaty, extension embargo against Chi, etc. still remained and—in our view continue to be most serious points of conflict between US and UK—no new developments occurred in period mid-March mid-April further to exacerbate situation. Moreover, there were indications of growing doubts among number Conservatives and even some Labor MPs re efficacy and wisdom UK’s China policy particularly in view continued CPG intransigeance and serious strain imposed on “Anglo-US alliance” with consequent cracks in what had hitherto been all-party support of UK Govt’s Far East policy.

(f) German Rearmament and Spain.

Fact that both issues largely dormant, particularly latter, diminished discussion these facets US policy among Labor although their critical views re US position remain.

3. Favorable trend of opinion described above was first checked and subsequently set back by developments stemming from Cabinet crisis over budget.

4. Implications of rearmament program for UK economy had only partially penetrated Brit consciousness at time budget was introduced. Indeed many people here fondly hoped that a formula wld be found to permit them both guns and some butter. Budget disposed of this idea, for its proposals were sufficiently detailed to make clear that increased sacrifices wld be required of all including reduction in standard of living.

5. Brit people were and continue to be aware that Sov basically responsible for new period of austerity confronting them. However past statements by govt spokesmen re supply situation led them to place part of blame on US because of their belief that we were hoarding lion’s share of raw materials and seeking to superimpose US defense program on already expanded civilian production without appreciable curtailment latter. In other words, US actions wld require Brit to carry far heavier burden than that to be borne by US people.

6. Bevan–Wilson dramatization of allegedly disastrous effects of projected defense program on UK economy not only brought into open some latent labor fears re incompatibility of large-scale rearmament with welfare state concept but also capitalized on smouldering resentment toward US occasioned by growing pinch of [Page 943] shortages.3 Bevan-Wilson complaints that in introducing budget govt realized it was attempting defense program impossible of attainment because of shortages reacted still further against US in view of widespread belief that US had put strong pressure on UK to adopt program of this magnitude in first place. Finally Bevan’s accusation that UK Govt “tied to wheels of US diplomacy” served to kindle anti-Americanism endemic in some segments of Labor party which stems from long standing ideological distortion of capitalism and is nurtured by ignorance or nature present day US politico-econ system.

7. Death of Bevin,4 retirement of Cripps and temporary illness Attlee deprived govt of its most influential spokesmen to refute Bevan-Wilson exaggerations and place matters in proper perspective. Meanwhile Tories seized upon raw material issue to belabor govt for lack of foresight in stockpiling thus heightening controversy and giving it partisan polit flavor.

8. Govt is worried by extent to which critical attitude toward US prevails among rank and file Labor party in England and Wales—it appears to be largely absent in Scotland—but its efforts to counter trend have thus far not had effective results. Also govt leaders have been preoccupied with domestic polit scene. Govt also worried re possible adverse repercussions here of anti-Brit tone MacArthur’s testimony but is wisely observing discreet silence in matter and counting on admin witnesses to give more balance to picture.

9. Tory leaders also concerned implication present situation from standpoint overall Anglo-Amer relations and as indicated Eden’s recent speech (Embtel 5828 May 85), some of them favor early top level meeting between reps two govts to settle outstanding differences.

10. While situation described above is naturally disturbing, we do not regard it as alarming. Brit people realize that for better or worse their destiny is inextricably intertwined with that of US even though some of them may be reluctant to admit it. At same time however we are not sanguine that any rapid improvement will occur in next several months in view probability continuing differences over FE, likelihood raw materials becoming tighter before supply position eases, possibility differences over NE policy [Page 944] growing more acute, and in light emotional atmosphere of pre-election period prevailing here.

Gifford
  1. Transmitted in two sections. Repeated to Paris, Frankfurt, Brussels, Rome, Stockholm, Moscow, and The Hague.
  2. Document 429.
  3. On April 23, Aneurin Bevan, Minister of Labor, and Harold Wilson, President of the Board of Trade, resigned from the Labor Government because of this situation.
  4. Ernest Bevin died on April 14.
  5. Not printed.