Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

97. Telegram From the Department of State to the Embassy in the United Kingdom⁰

April 20, 1959, 1 a.m.

9271. For Ambassador from Dillon. Your 5342 and 5346.¹ Cannot imagine source UK fears for which absolutely no substance.

You may wish inform Eccles along following lines and may quote directly as appropriate:

In our view UK is great and dynamic power and prime source of progress and stability in free world. US has closest possible relation with UK on all matters not only of direct mutual interest but affecting basic Western position.

Continuation of impressive growth and vigor of UK economy is matter of utmost importance to us and to entire free world and US ready discuss appropriate measures contribute further progress. Our measures to strengthen Japan, our support for common market, and our efforts maintain and bolster German position in East-West struggle in no way detract from or inconsistent with our view of vital and leading role of UK in world affairs.

In short, I am at loss to understand what prompts British concern and feel it is essential place on table any specific problems or fears so they can be fully aired between us and such misunderstandings avoided in future.

Caccia has never at any time even intimated to me any thoughts such as those supposedly contained in his report. If you find the opportunity and deem it desirable suggest you inform Eccles that this subject has never been discussed with me by Caccia or any other member of British Embassy staff and suggest to him that Caccia be instructed to discuss matter with me. This should give best possible opportunity to disabuse UK Govt of disruptive and false idea that we have ever favored Japan or Germany at expense UK.

Dillon

0. Source: Department of State, Central Files, 411.4141/4–1559. Secret; Priority; Limit Distribution. Drafted by Isaiah Frank, Officer in Charge of U.K.-Ireland Affairs James W. Swihart, and Dillon; cleared by Mann, EUR, S/S, and with Leddy; and initialed by Dillon.
1. Telegram 5342, April 15, reported Caccia had informed his government that the United States intended to strengthen Japan and West Germany, even at U.K. expense. This report had shaken Macmillan’s “confidence in the Anglo-American relationship generally.” Ambassador Whitney requested guidance in case the issue arose in a meeting with Sir David Eccles, President of the British Board of Trade. (Ibid.) Telegram 5346, also April 15, requested guidance by cable or telephone before April 20. (Ibid.)