188. Telegram From the Embassy in the United Kingdom to the Department of State0

3009. From Dillon.1 Paris for USRO; Department inform Treasury.

[Here follow paragraphs 1–4.]

5.
Amory mentioned possible use OEEC as means encouraging other countries, particularly Germany and Italy, to increase development lending. In general British favor using OEEC this purpose, and say they understand Germans also favor. Problem is French. Dillon said IBRD suitable place for agreeing on programs for specific borrowers, but Ministerial discussion preferable for burden-sharing. Therefore U.S. may favor use of OEEC, but not decided. Would have to be discussed with Congress. U.S. decision should be reached prior to OEEC Ministers meeting January.
6.
Dillon said we thought Japan should be associated somehow this effort. British agreed but concerned about associating Japan with OEEC group owing European trade problems with Japan. They also favor excluding non-industrial OEEC countries.
7.

Amory suggested that if U.S. were to take more active part in OEEC, reorganization would be advisable and suggested might be desirable for U.K. to drop chairmanship. Dillon said some form of rotation might be answer.

[Here follows paragraph 8.]

9.
British concerned about Dutch and Belgian effort to reduce IDA subscription below IBRD formula. Said if successful, Australia and South Africa will want to do same. Dillon agreed and said U.S. doing what it can to hold line.

Separate tel covers discussion dollar liberalization.

Whitney
  1. Source: Washington National Records Center, RG 59, Conference Files: FRC 83–0068, CF 1548. Confidential. Drafted and authorized by Bean and cleared in draft with Dillon. Repeated to Paris, Bonn, Rome, New Delhi, Karachi, Tokyo, and Ottawa.
  2. Regarding Dillon’s December 7–14 trip to Western Europe, see Document 116.