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

Europe,   pp. 196-654 PDF (168.7 MB)


Page 406


FOREIGN RELATIONS, 119 4 7, VOLUME III
  However, present working of general report indicates it is intended
for Secretary Marshall. Moreover, Franks and Marris'1 have ex-
pressed their hope and expectation that reports will be approved
promptly by participating governments in substantially present form
and formally transmitted to Secretary. Therefore, Department should
not overlook possibility of this outcome and should, in our opinion,
consider appropriate course of action. Several possible courses dis-
cussed below.
  2. Publicity now being given to technical subcommittee reports.
Press conferences have been held regarding reports on fuel and energy,
and maritime transport. It is apparently intended to hold press con-
ferences on other reports in near future. Franks and Marris have
expressed opinion that publication of reports, presumably upon trans-
mission to participating governments or to Secretary, would be desir-
able. It appears reasonably certain that key CEEC individuals in Paris
intend to give widespread publicity to reports.
  3. Our present information is that figure for total deficit for entire
period is being revised downward from $29.2 billion figure previously
reached and mentioned in newspapers. Franks has already indicated
aggregate deficit could be reduced by about $5 billion through elimina-
tion of capital expansion items. Information is not yet available as to
extent of ultimate reduction in aggregate deficit figure or basis on
which this reduction will be calculated. We are fairly certain reduc-
tions made to date have not thus far been reflected in substantial revi-
sion of technical subcommittee reports on net commodity requirements.
  We are informed that reductions are being made in aggregate net
requirements for food, coal and timber without regard to revision of
each country's annual net requirements for those commodities. Adjust-
ments are also being made in dollar price co-efficients for some of these
commodities in order to reduce aggregate estimated deficit.
  According to present information, balance of payments summary
will be for sixteen countries in aggregate without individual country
breakdown although it is inconceivable that net deficits by individual
countries will not be presented at some point.
  4. It is belief of Department Economic Advisers that reports in
their present form, and as they will probably be approved by Executive
Committee, do not constitute acceptable basis for recommendation to
Congress and do not meet US conditions as presented by Clayton
August 30 (Embtel 3543, August 31). Reports of technical committees
are merely compilations of individual country statements of com-
modity requirements from outside sources. (These committee reports
are now largely unrelated to latest adjusted estimates of aggregate
  'Adam D. Marris, deputy leader, United Kingdom Delegation, CEEC.
406


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