Memorandum from Secretary of State Dean Acheson to President Harry S. Truman
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OCR Page 1 of 2memo,
Ans. Nov.22,1951
November 20, 1951
MEMORANDUM FOR THE PRESIDENT
Subject: Economic Assistance for France
The Secretary has reported about the general agreement
that he and Mr. Harriman reached with the French Government
on November 16, to provide United States economic assistance
to France in an amount adequate to make possible the French
defense effort in the conding year. The Secretaryis report
to you is contained in the attached telegram 2967 from Paris,
dated November 17. The agreement reflects the results of two
weeks of negotiations with the French.
Our approach to the French in the aid negotiations has
been that United States economic support for France in one form
or another would be in an amount adequate to finance imports
into France required to support the French defense effort and
maintain a healthy Fronch econonty
The French believe that the military situation in Indo-
china requires that they increase their military expenditures
in that area by one-third next year. The French are also
anxious, as are we, that they carry out a substantial program
to increase their forces in Europe committed to Eisenhower.
This latter program is not only essential to NATO defense plans
in Western Europe but is also considered by the French to be a
necessary prerequisite to the creation of German forces of the
size which our military planners desire. It is the judgment
of the United States negotiators that the French programs in
Indochina and in Western Europe for the coming year are reasonable
ones and justify our support.
ARCHIVES AND
RECORDS
to
The French Governnent is now presenting its calendar 1952
budget to Farliament. The budget presented, particularly as
it rolates to defense expenditures, is to a large excent dependent
on how many dollars the French can count on having to cover their
balance of payments deficit. Mr. Harriman and Secretaries Acheson
and Lovett have agreed that the legitimate French dollar
DECLASSIFIED
requirements
E.O. 12065, Sec. 3-402
SEGRET
State Dept. Guidelines, March 6, 1982
By He
NLT, Date 3-16ty
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