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United States Department of State / Foreign relations of the United States, 1947. The British Commonwealth; Europe

Europe,   pp. 196-654 PDF (168.7 MB)

Page 410

any commitment with respect to US aid to carry out any recovery
  If Brit agree to joint statement,2 it is proposed that OMGUS rep-
resentatives who are familiar with level of industry plan and economic
situation in bizonal area would immediately join US representatives
now attached to Paris Embassy to work on CEEC matters, with per-
haps additional staff from War and State. Statement would be de-
livered to CEEC and arrangements made for prompt consultation.
  Will Clayton and Ambs Caftery and Murphy pls send London ur-
gently any comments repeating to Dept. War has agreed to this
  Sent London, rptd Paris, Geneva for Clayton, Berlin.
  2 See last paragraph, telegram 4951, September 12, from London, p. 429.
  8 Ambassador Murphy on September 8, replied in telegram 340 from Frankfurt
as follows: "I concur in text of proposed statement to CEEC. It seems
tionable to us here that Anglo-American zones of western Germany can and
should make substantial contribution to European recovery and without such
contribution recovery program is obviously jeopardized. We are also glad
to note
that alongside question of priorities in industrial reactivation emphasis
is also
laid on needs of Germany's presently depressed economy. You of course recog-
nize inherent risk in this approach of temptation on part of European countries
to obtain indirect financing from US and possibility of an easy tendency
to in-
terpret military government commitments in this connection as US Government
commitments." (840.50 Recovery/9-847)
840.50 Recovery/9-647: Telegram
        The Acting Secretary of State to President Truman
TOP SECRET                   WASHINGTON, September 6, 1947-noon.
   1025. Eyes Only for the President 1 from Secretary of State. There
is every indication that the economic situation in Europe is deteriorat-
ing rapidly and seriously. It is now apparent that some of the more
important countries, notably Italy, France and England, and possibly
some of the others, will be in a dangerous position before the end of the
year. This has resulted in part from the factors with which you are
already familiar; but the process is being materially aggravated and
hastened by the crop failures in Western Europe and by the emergency
measures recently taken in England.
   Reports along this line are already increasing in Washington, and
 press and radio are full of comment and speculation about our reac-
 tion. As you have seen, Lovett was closely questioned on this subject
 at his press conference on Wednesday and, while he refused comment
 on special session or other form of Congressional hearings before end
   'President.Truman on a state visit to Brazil had addressed the closing
 of the Inter American Conference for the Maintenance of Continental Peace
 Security at Petropolis, Brazil. For documentation regarding the Conference,
 vol. viII, pp. 1 ff.

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