167. Telegram From the Department of State to the Secretary of State, at Paris1

Tedul 4. For Secretary and Dillon2 from Herter. I would like to inform you of the results of Walter Judd’s negotiations in New York on technical assistance and SUNFED.

A much amended and much negotiated compromise resolution which U.S. and thirteen others cosponsored was unanimously passed 70–0–0 this morning by the Economic Committee of the United Nations, and will undoubtedly be ratified by the Plenary Session of the General Assembly Saturday morning.3 It is a compromise which certainly does not contain all the things we would like to have; but it contains even less of the things which the SUNFED proponents tried to get into it. Considering that they command an overwhelming voting majority, I believe this compromise represents a substantial negotiating victory by Walter Judd. The Canadians, the British and others who support our general position are unanimous in their opinion that this compromise gives only words to the SUNFED proponents, while it gives to us an indefinite and controllable deferment of SUNFED, coupled with an immediate but realistic program of technical assistance expansion—which was our original proposal.

I recognize that there are sections of this compromise text which appear to make it possible to set up at this time machinery along the lines previously proposed for SUNFED, and with an easy transformability into SUNFED. I do not believe that there is the remotest likelihood of this happening under present circumstances; and, indeed, we intend to make certain that it does not happen by playing a leading role in the Preparatory Committee which will chart the manner in which the new Special Fund for technical assistance will be established and integrated with the present programs.

We shall welcome the participation in this enterprise of representatives of the Treasury.

The measure of success of this resolution, of course, will be in how it works out. I think it will work out reasonably well. If, however, it does not, we are still fully protected by having made no commitment to participate, and by having made perfectly clear that any participation on our part would be only in accordance with [Page 441] certain specific understandings including the necessity of Congressional approval. Walter Judd has repeatedly emphasized these understandings, and will do so once more when the resolution is finally voted in the Plenary.

I am cabling the resolution as passed by the Committee, marked subject: SUNFED as Tosec 8.4

I should add that our support of this resolution was strongly urged by Lodge, Judd and the USDel. Lodge feels so strongly that this is a wise and important decision by us that he thinks the President should comment upon it in positive terms in NATO meetings.

Herter
  1. Source: Department of State, Central Files, 398.051/12–1357. Confidential; Niact. Drafted by Hanes.
  2. Both Dulles and Dillon were in Paris preparing for the NATO Heads of Government Conference, scheduled to convene on December 16.
  3. December 14.
  4. Not printed. (Department of State, Central Files, 398.051/12–1357)