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Memorandum of Conversation with Secretary of State Dean Acheson, James Webb, Dean Rusk, George Perkins, Henry Byroade, Paul Nitze, Ambassador Lewis Douglas, John J. McCloy, and Wayne Jackson

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544 DEPARTMENT OF STATE DECLASSIFIED 75 E. O. 11652, Sec. 3(E) and 5(D) or (E) 2-29-75 Dept. of State letter, Aug-9.1973 Memorandum of Conversation , NARS Date E15-77 By DATE: March 7, 1950 SUBJECT: PARTICIPANTS: The Secretary Mr. Nitze The Under Secretary Ambassador Douglas Mr. Rusk Commissioner XeCloy Mr. Perkins Mr. Jackson Mr. Byroade COPIES TO: S - Mr. Battle BNA - Mr. Labouisse U - Mr. Webb Mr. Snow EUR - Mr. Perkins Mr. Hulley Embassy - London Mr. Jackson 1-1493 The above group met in the Secretary's office at 2:15. The Secretary said that he and Ambassador Douglas vere dining with Sir Oliver Franks that evening and that it was understood that the meeting would be on a personal basis and that Sir Oliver vould not report to London about the discussion. There was general agreement that if the discussion was held on that basis, Sir Oliver would not report. Mr. Perkine said that he had been requested to suggest what line the conversation at dinner might take. The basic question was whether there should be a general review of US-UK relations and should specific matters be brought up. Ambassador Douglas suggested that it was important to estab- lish whether or not there was a basic understanding and agreement to act in collaboration. There were a number of specific points at issue with the British, among which he mentioned B-29 airfielde in England, additional military production under MDAP, other military facilities, Japanese and German accession to the Wheat Agreement, Jepanese position in international relations, the European payments union, the trade agreement with Germany, petroleum and sterling balances. The sum total of all these mat- ters of controversy added up to a generally strained position between the two countries. While he felt that it/was desirable to explore the question of whether there was a basic understanding between our two countries, he felt that this could best be tested in relation for