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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 203

ginning April 28, 1947 to consider the Palestine problem will set, up a
committee to report to the next regular General Assemby of the United
Nations in September 1947. Whether any United Nations decisions in
this respect will result in any financial requirements for Palestine
which the United States would be expected to meet can not be deter-
mined at present.
5. Further Loans to France or Other Countries
  I do not assume that you will choose to disclose to Mr. Webb that
a Special Ad Hoc Committee of SWNCC is now considering whether
there are other countries for which aid programs analogous to the
Greek-Turkish program may have to be initiated during the next few
months. This Committee is now drafting an interim report.2 While I do
not want to anticipate its findings or the outcome of their considera-
tion by SWNCC, I understand the possibility of a new aid program
for Italy and possibly Hungary and Austria is being seriously con-
sidered at the working level. Iran, also in this category, will not re-
quire special assistance beyond present programs (surplus credit and
World Bank loan).
  As far as France specifically is concerned, it is at present anticipated
that existing financial institutions, particularly the International
Bank, will be able to take care of France's financial needs through fiscal
1948. This assumes that the Bank will grant France the full $500
million which she has requested before the end of calendar 1947
or early 1948. It also assumes that adequate coal supplies will be avail-
able to France and that control of inflation in France can be main-
tained. If adverse conditions turn out to belie this latter assumption
France may need further financial assistance in fiscal 1948 which
would not be likely to be forthcoming from the International Bank or
the Export-Import Bank. (Further, there are military and political
considerations which have led the SWNCC working group on France
to classify it as a critical area which may need assistance in the next
several months.)
  The financial needs of other countries through fiscal 1948 can prob-
ably be met from existing commitments, programs or lending insti-
tutions, to the extent that it is now considered in the United States
interest to meet such needs.
  While it would probably not be desirable at this stage to mention
the work now going on in SWNCC, I should think the general outlines
of the above could be indicated to Mr. Webb.
  I have not attempted to indicate what I think is implicit in Mr.
Webb's query regarding priorities, namely how would we reallocate any
cut in an "overall program" among the several programs now pending.

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