Background Memorandum Regarding United States Military Assistance to Great Britain
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"NATIONAL
ARCHIVES AND
BACKGROUND GUIDANCE
RECORDS
SERVICK
On 1st March, 1949 the U.S. Ambassador communicated to the Secretary
of State for Foreign Affairs a memorandum setting out the general concept
for a military assistance programme for Western Europe. The basic idea as
described in this memorandum was that the U.S. Administration, on receipt
of a request for military assistance from the Western Union countries,
would present to Congress a programme of military assistance for the year
ending 30th June, 1950, permitting:
(a) The transfer of certain finished military arms and equipment
from U.S. stocks or production to the Western Union countries;and
(b) A sum of dollars to be available to cover necessary dollar costs
of agreed specific proposals involving additional military pro-
grammes, including production, in the Western Union countries.
It was stated in the memorandum that a request for military assist-
ance by the European countries would be construed as an acceptance of the
validity of the principles of "self-help" and "mutual aid" and the obli-
gations they entail including that of reciprocal assistance to the United
States.
First indications of the U.S. Government's calculations
2. In discussing this memorandum with the Secretary of State on 1st Marc
the U.S. Ambassador outlined the main points in the general concept behind
the U.S. proposals and certain tentative dollar figures were mentioned for
the two categories (a) and (b) above, though at the request of Mr. Douglas
they were not recorded. On the following day, however, at a meeting with
the Prime Minister and other Ministers of H.M. Government Mr. Douglas
gave a preliminary estimate of the financial calculations for the year
ending 30th June, 1950 on which the U.S. Government were working. These
were as follows: -
(a) Equipment from U.S. sources to the value of $850 million to
$1,000 million.
(b) Expenditure by Western Union countries of the equivalent of
$325 million, of which the U.S. would contribute from $115
$165 million.
3. In regard to (a) it was explained by the Ambassador that the figures
were misleading in the sense that they were not an accurate measure of the
amount of equipment which would be provided. The greater part would come
out of surplus stocks, which were valued at about 10% of their original
value. As to (b) it will be seen that according to the Ambassador's
figures the "necessary dollar costs" in the Western Union programme were
expected to amount to between 35% and 50% of the total cost.
4.
After this meeting, at which it was agreed on the side of H. M.
Government that the proposals were acceptable to the U.K. as a basis for
discussion with other Western Union countries, the U.S. Government laid
their proposals before the French, Belgian, Netherlands, and Luxembourg
Governments in a memorandum handed by Mr. Harriman to the individual
Governments of the Five Powers on 3rd March. On 6th and 7th March the
Brussels Treaty Finance and Economic Committee met American representa-
tives who once again gave tentative and personal estimates of the aid
which might be available, namely:-
(a) That the
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