262. Telegram From the Under Secretary of State for Political Affairs (Murphy) to the Department of State0

Murto 2. During the course of the President’s meeting morning December 5 with Segni, latter expressed the hope that his recent visit to London1 had served to eliminate certain fears. Segni referred especially to aid to underdeveloped countries, mentioning his recent conversations with Karamanlis and Averoff.2 They have said that in connection with needs of underdeveloped countries, needs of certain countries in Europe such as Greece had to be kept in mind. They said that spoke of underdeveloped countries in the Moslem areas, [sic] It was also necessary to bear in mind the needs of certain countries in Europe, such as Greece and Turkey, as well as other countries such as Iran and Pakistan. Segni said that in London it was also agreed to examine this problem. [Page 577] The British seemed to be inclined to examine it within the framework of OEEC. President referred to a conversation with Macmillan3 when the latter had stressed the Commonwealth aspect of the British position, and had pointed out that Germany, the U.S. and Italy did not have the same political ties as the UK. The President stated by and large a preference on our part for work within the framework of OEEC. Segni said that the important thing is to get coordination, whether in the OEEC or otherwise. The Italians feel that aid to underdeveloped countries provides a new chapter in the essential activities of the free world. We must coordinate our policies, which must include liberalization of exchanges and increased purchasing power in the underdeveloped countries. The Italians referred to their recent conversations regarding the Common Market in Brussels, Strasbourg,4 and London. As result of these conversations, it seemed to them a broader framework is necessary to handle the problem. On balance the framework of OEEC, which includes 18 nations and the US and Canada, seems to be indicated. The President mentioned Japan also important in this connection. He noted that Dillon would be coming to Europe about December 9 for discussions of the general problem.5

Segni and Pella picked up idea which President had thrown out yesterday evening in meeting with Gronchi, that question of aid to underdeveloped countries and need for sharing burden among free world countries was so important that it might even be useful to organize a special meeting to consider this whole problem. Pella suggested that the meeting of the OEEC scheduled for January would provide a helpful opportunity to explore this possibility, looking toward a conference perhaps in the spring. The President said that he was disposed to favor such a conference as soon as the staff work could be done, and he would communicate with the Department today urging that steps be taken to “get the show on the road”. He urged that elaborate organization involving heavy overhead expenses be avoided.

Murphy
  1. Source: Department of State, Central Files, 611.65/12–559. Confidential; Priority.
  2. Segni and Pella visited London December 1 and 2 for discussions with British leaders.
  3. Greek Prime Minister Konstantine Karamanlis and Foreign Minister Evangelos Averoff visited Rome November 9–12.
  4. Apparently during Eisenhower’s August 27–September 2 visit to London.
  5. The dates of the visits of Segni and Pella to Brussels and Strasbourg have not been identified.
  6. Dillon visited London (December 7–10), Brussels (December 10), and Paris (December 11–14) for discussions on economic matters.