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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 426

regarding representations made by our missions in pursuance Dept's
September 7, 1 a. m. circular.
  At a meeting with Franks and Hall-Patch we told them that report
fell far short of a program which would prove acceptable to the Amer-
ican people but that we would suggest the following changes which, if
adopted, would, we thought, improve their case in the United States:
  1. Statement that individual countries should obligate themselves
to the group to attain the production targets they had set for key
  2. Revision of financial section to remove threat of thought [sic]
that effective stabilization measures could only be adopted after ex-
ternal aid commenced and production substantially increased.
  3. Greater emphasis on and sharpening of principles, including
commitment to reduce and eventually to eliminate trade barriers among
the participating countries.
  4. Segregation of capital equipment items (agricultural and mining
machinery excepted), with clear indication that conference will look
to International Bank and other lending agencies for financing these
  5. a. Agreementto "recess" rather than "adjourn" the
    b. Postponement of formal conference session to September 20.
  6. Firm commitment by participating countries that, if assistance
is assured, they would form a multilateral organization with powers
to review performance of each country.
  Franks then consulted with the Executive Committee regarding the
foregoing, after which we met with the Committee at its request.
Hirschfeld had previously informed Franks that neither Holland,
Belgium nor Luxembourg would sign a report which we said would
prove unacceptable. At the opening of the meeting Alphand made it
clear that the French Government's position had changed from that
of the previous day and that it was prepared to proceed along the lines
suggested by US. The Scandinavian representative suggested that the
conference reach agreement on as many points as possible within 10
days and then issue a final report, leaving other matters of bilateral
arrangements between the US and individual participating countries.
He said that United Kingdom coal production was something that
Norway could do nothing about and that he did not believe that Nor-
way should enter into any obligations concerning such production.
Clayton made it clear that the obligation we had in mind was one
which the United Kingdom would have towards its fellow participants
in return for obligations which they would hold towards it for stand-
ards of performance in other matters. There was a mutuality of inter-
est among European nations in economic matters and if this common
interest were not recognized, it was difficult to see how progress could
be made.

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