Office of the Historian

74. Telegram From the Department of State to the Embassy in Germany0

Washington, July 11, 1963, 9:48 p.m.

106. ADCOR. In accordance with understanding developed on further messages to Erhard in light of brevity of President’s conference with him1 Ambassador requested approach Erhard on military offsets and on aid. Approach (or approaches) should be made in context of Deptel 373 of August 19622 re priorities of FRG effort. In view pledging session of India consortium scheduled July 18, Ambassador should raise development aid issues at earliest opportunity along following lines (separate message on offsets to follow):

The President regrets that the brief time available for his talk with Erhard in Wiesbaden did not allow discussion of many aspects of general economic relations. He is most appreciative of FRG cooperation with U.S. as expressed in military offset arrangement, international financial action and in support of IDA. The continuation of a full military offset undertaken in the light of the U.S. balance-of-payment difficulties continues to be of primary importance in U.S.-German economic relationship. President is aware of the fact that he owes Erhard a memorandum on the U.S. view of the existing difference over offset levels and this memorandum is being prepared with urgency.3

[Here follows discussion of cooperation with the Federal Republic of Germany on development aid.]

Rusk
  1. Source: Department of State, Central Files,FN 12 US. Confidential; Priority. Drafted by Louis C. Boochever (A/AID) on July 10; cleared by Creel (GER) and Richard H. Davis (EUR) in draft, W. Carter Ide (AID/AA/NESA) and James P. Grant (NEA) in substance, and Walter H. Lubkeman (S/S); and approved by Frederick F. Simmons (AID/EXSEC) for David E. Bell (A/AID). Repeated to Paris (OECD) and New Delhi.↩
  2. See Document 73.↩
  3. Dated August 8, 1962. (Department of State, Central Files, 811.10/8-862)↩
  4. A memorandum on U.S.-German cooperative logistics and financial offset arrangements, with instructions to deliver it to Erhard, was transmitted in telegram 147 to Bonn, July 16. (Ibid., FN 12 US)↩