751.5 MSP/7–2552: Telegram

No. 533
The Ambassador in France (Dunn) to the Department of State

secret
priority

571. Cotel. Following is text of memo I handed Pinay today pursuant Deptel 451, July 241 and in reply his aide-mémoire of July 21 (mytel 467, July 22 [21]2).

Begin Text. Reference is made to the Prime Minister’s aide-mémoire of July 213 which requests that the US Govt reconsider its response of July 124 to the French proposals of May 65 for additional off-shore purchases in France. This aide-mémoire and the other documents which were presented at the same time were immediately transmitted by wire to Wash with an urgent recommendation that the US Govt reconsider the decision contained in the letter of July 12.

The US Govt, pursuant to the request of the Fr Govt, has again fully considered its position with respect to the May 6 proposals; however, the conclusion has been reached that it is not possible to modify the position given in the letter of July 12. A sharp curtailment on the part of the US Congress of funds requested for military assistance in the US FY 1953 makes it imperative to apply those limited funds finally made available to only the most essential needs as those needs were presented by the executive branch to the Congress. The funds approved by the Congress for off-shore procurement were so approved on the basis of a presentation by the executive branch which indicated that these funds wld be first applied to the procurement of ammunition, spare parts and similar items for the purpose of helping to fill present urgent NATO requirements.

In the circumstances and in view of the reduction in the Mutual Security Appropriation, the US Govt does not find it possible at present to accept any commitments with respect to the items contained in the Fr Govt’s request of May 6 other than those which have already been communicated to the Fr Govt regarding the MD–452 aircraft and the ammunition.

[Page 1234]

It shld be pointed out, however, that the foregoing does not preclude the procurement in France by the US Govt of additional quantities of certain ammunition, subject to its acceptability as to types, standards, prices and delivery schedules. The US Govt is also prepared to proceed with a program of procurement of spare parts for vehicles of US manufacture. Further, as was indicated in its response of July 12, the US Govt is anxious to explore the possibilities of increased off-shore procurement of electronics, radios and radar equipment.

The US Govt also considers that it may be possible, during the process of refining and establishing the US FY 1953 end-item program, to determine that certain items to be furnished by the US may be procured in France if adequate facilities and acceptable prices can be established.

Dunn
  1. Supra.
  2. Document 529.
  3. For text of the French aide-mémoire, see ibid.
  4. For text of Dunn’s letter to Pleven, see Document 526.
  5. For a summary of the French proposals, see Document 516.