Foreign Relations of the United States, 1961–1963, Volume XIII, Western Europe and Canada

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

Washington, April 8, 1961, 8:08 p.m.

4751. Following minute (unnecessary words omitted) agreed to between Secretary and Lord Home sets forth US-UK understanding on follow up actions required as result President’s talks with Prime Minister.

Begin text. In course their meetings in Washington from 5th to 8th of April, 1961, President and Prime Minister agreed following action should be taken:

1) Representatives two Governments on Board IMF should continue press enlargement of scope of Fund within existing Articles of Agreement.

2) Officials two Governments should make urgent study longer range problems liquidity. US and UK would not at present initiate steps broaden area international consultation but would be ready listen any views expressed other governments, e.g., at EPC. Action 1) and 2) would be initiated Washington between Dillon, Ball, Heller and Pitblado British Embassy.

3) Two Governments should consult with respect measures designed induce Federal Government Germany make further contribution (whether by purchase arms or overseas aid) to effect foreign exchange cost US and UK of maintaining troops in Germany. Consultation will take place London or Washington as required.

4) Officials two Governments should study in London problems connected with marketing tropical products which would arise from any broadening existing economic associations in Europe.

5) Ball will present the United Kingdom with memorandum on deciduous fruits on which UK will see what can be done liberalize restrictions.

6) Officials two Governments should study feasibility of a plan by which export textiles from Hong Kong to US could be reduced in return for other measures which would diversify economic structure Hong Kong. Study should start in Washington at time of Sir Gorrel Barnes’ visit and be transferred if necessary to London.

7) Officials of two Governments should consider problem stabilizing resources countries dependent on one or more commodities on understanding each commodity would need be studied on its particular merits. Consideration this subject will be handled between Ball and British Ambassador.

8) Prime Minister welcomed initiatives recently taken by USG increase effectiveness work of DAG within structure of OECD and undertook UKG would give full cooperation support those initiatives.

9) Existing machinery Washington will consider further what Western negotiating position should be over Berlin if faced by new Soviet move entailing negotiations.

10) Foreign Secretary and Secretary State will arrange for fresh review of contingency planning in respect Berlin. Purpose bilateral review will be see if Agreement can be reached new instructions to planners both to broaden scope their planning and to authorize training. Bilateral talks would be followed promptly by tripartite talks and subsequently Germans would be brought in on certain aspects. Secretary State will give paper to British Ambassador.

11) Representatives two Governments at UN should consider and report on following problems affecting future UN:

a) Representation China in UN including possibility a delaying resolution linking question with expansion of membership of Councils of the Organization or a “successor States” type resolution on analogy of that passed in respect UAR.

b) Enlargement of composition of Security Council and other Councils of Organization.

c) Position of Secretary-General and structure of Secretariat.

d) Financing of Organization and of operations undertaken under its auspices.

12) Representatives two Governments at UN should consider handling of Laos question at the UN.

13) British Ambassador Washington and Secretary State in consultation with Australian Ambassador Washington should make urgent study the line which three Governments might take with view discouraging Indonesian attack on West New Guinea including possibility of trusteeship so that USG might be in position give suitable warning President Sukarno when he visited Washington later in April.

14) UK agreed look into question providing assistance Britishowned railway in Bolivia in light of dangerous political situation that country.

15) UK agreed provide appreciation obtained from President Ayub Khan of situation on Pakistan-Afghanistan border. End text.

[Here follows the remainder of the telegram.]

Rusk

0. Source: Department of State, Central Files, 611.41/4–861. Secret.