Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 1

Conference files, lot 59 D 95, CF 100

No. 346
Notes on the Under Secretary’s Meeting, January 9, 1952, 9:30 a.m. ¹

secret
UM N–441

[ Washington ,] January 9, 1952.

[Here follow numbered paragraphs 1 and 2 reporting consideration of the Korean situation and Communist propaganda activites.]

Résumé of Churchill Talks

3. The Secretary stated that the current Churchill talks had been very useful and the outcome had been good. He commented on the varying points of view which are held by individuals in the main stream of foreign relations activity and those who have access only to the informational flow of materials. It was recalled that Mr. Churchill and his advisers, until just recently, had fallen within the latter category. The current conversations reduced mutual problems to their bare fundamentals and had the tendency to make “bright ideas seem less bright.”

4. Specifically, progress was being achieved on the matter of raw materials. It would now be possible to work toward a solution of the Bolivian tin problem. The Secretary indicated that Mr. Eden would remain in Washington until January 11 and that certain of the problems had been referred to Mr. Eden and to him for further negotiation. He expected they would meet twice daily until Mr. Eden’s departure. They will consider Japanese relations with the Nationalist Government, the Iranian question, Egyptian situation, Austrian treaty, Far Eastern problems, and one or two other items.

5. Concerning the question of the European army, the Secretary indicated that the discussions had been channeled away from the theory of establishing the “best army in a perfect world” to “this or nothing.” This problem will be further negotiated with Mr. Eden. The question of the Atlantic Command is still open. It is viewed with a great deal of emotion by Mr. Churchill.

6. Mr. Thorp inquired whether there had been any discussion with Secretary Snyder of continuing the economic talks with the British and asked whether we wished to endeavor to cut off or continue conversations on long range economic problems. The Secretary replied that the question had been raised as to whether Washington machinery should be set up to continue long range economic discussions. Secretary Snyder was opposed to the suggestion. State did not press a viewpoint. Ambassador Gifford was opposed and had previously indicated that ensuing domestic measures in Britain would be painful; that they should in no way be construed as actions resulting from U.S. pressures. The Secretary said there were some things which the U.S. should and could do to try to keep the military production going during the transitional period of British economy; that there existed areas of activity which should be continued regardless of British national action. The question remained as to whether the British would move in and try to tackle the large problems which face them. Were they living beyond their means? Just what was the influence and effect of the vast sterling debt? Mr. Churchill shrinks from any vestige of foreign direction of British relations with the Commonwealth as well as his relations with the voters but if Mr. Churchill is not willing to tackle the big problems, then there is little which can be done.

7. In the light of the foregoing, it had been suggested that perhaps Secretary Snyder could send a Treasury representative to London to determine with the British Treasury officials the basis of the real troubles, thereby developing a tangible frame of reference for the discussions with the British Chancellor when he arrives. Mr. Nitze stated that while Mr. Churchill’s problem with his voters was entirely a matter of his concern, the sterling area problems could not be worked out by Mr. Churchill alone. The solution would also depend on U.S. action. If Mr. Churchill is prepared to tackle the sterling area problems, then it would be most helpful for a Treasury representative to endeavor to get at the roots of the problems and find alternative remedies.

[Here follow numbered paragraphs 8–12 reporting the consideration of foreign assistance, the Korean truce, and inflationary pressures.]

1. The Under Secretary’s meetings, instituted in 1949 by Webb, were held at the discretion of the Under Secretary to discuss topics of major concern to the Department of State. The master file of notes, summaries, documents, and agenda for the meetings is in lot 53 D 250.