Telegram from Secretary of State Dean Acheson to President Harry S. Truman

INCOMING TELEGRAM Department of State TELEGRAPH BRANCH SECRET 28-M X Controi: 8522 Action Rec'd: November 17, 1951 SS FROM: Paris 6:57 p.m. Indo DCR TO: Secretary of State DECLASSIFIED E.O. 12065, Sec. 3-402 WO: 2967, November 17, 8 pom. State Dept. Guidelines, March 6, 1982 F.R. OF U.S. 1951 VOL. IV By we NLT, Date 3-16-14 NIACT. FOR THE PRESIDENT AND ACTING SECRETARY; FURTHER DISTRIBUTION BY S/S to ECA AND DEF. Further ref matter discussed in Amembassy Paris cable 2806 and 2827, we have been carrying on talks during past week with Lovett, Pace and Nash for Def, and with Harriman, Bruce and Labouisse (ECA). Gen agreement reached that in view of problems faced by French as outlined in ref cable, US assistance and military ex = penditures in total amount of approx 650 millions by July 1, 1952 will be required if French are to meet Indochina burden and at same time come up with adequate contribution to def of Western Europe. Difficulty recognized of making any reasonably firm estimate of military expenditures in view of interdependence of deployment on progress made toward readiness of bases and other facilities, Similar difficulty recognized in firming 3. up estimated expenditures for US share of infrastructure costs and off-shore procurement. Nevertheless necessity RECORDS BERVICE^ recognized by all of giving French most definite ideas pos. sible of what might be expected during 1952 in the way of US expenditures and assistance in order to permit them to support their def budgetary submissions in French Assembly debates which opened Friday the 16th. Failing any definite info on this score, French wld be forced by seriously deteri. orated balance of payments position to reduce def budget to level wholly unacceptable both for Indochina effort and NATO contribution. Moreover, as explained in detail in referenced cable, such action wld seriously impair progress toward resolution of problems of European def force and Ger con tribution to def of Western Eur. Sinoe all agreed that with every effort on part of both US and French to out red tape and expedite to maximum extents level of US assistance and military expenditures in fiscal 1952 cld reasonably be expected to approximate 650 millions, it was felt foolish in the extreme to deny this info to French at time when making it available to them might materially assist in REPRODUCTION OF THE SECRET MESSAGE IS PROHIBITED