Memorandum, State Department Summary of Telegrams

M OFFICE OF THE SECRETARY OF STATE DECLASSIFIED WASHINGTON E.O. 12065, Sec. 3-402 State By Dept. DEB NLT, Date 9-10-85 Guidelines, March 6, 1982 October 9, 1952 SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS FRANCE Our Ambassador in Paris believes the most serious strains are developing in our relations with the French and that we may expect very difficult days ahead. As a result of a meeting with Prime Minister Pinay and three of his Ministers to discuss a recent US message, Ambassador Dunn is convinced we shall not be able to accomplish the scrutiny and review of the French defense budget in the manner which had been envisaged, since the French made clear that they would consider this an in- - fringement of their sovereignty. Mr. Pinay told our Ambassador he was very concerned over the nature and tone of the US position, which if it became known, would have most serious consequences on Franco-American relations. Ambassador Dunn believes the real points at issue are: 1) a statement in our letter to the effect that US aid was given on the assumption that the 1953 French mili- tary budget would be appreciably larger than the 1952 budget; 2) an oral statement which our Ambassador had been instructed to make presuming to give a US estimate as to the size of the French mili- tary budget; and, 3) an oral statement concerning the review of application of counterpart funds. The Prime Minister and his col- leagues, who became quite heated, pointed out the French military budget was a problem for the French to pass upon. Pinay said that if the US were not prepared to give the $650 million in support funds, on which the military budget had been predicated, they would have to remake the budget. He went on to argue that we overlooked the fact that France was doing more in 1952 than had been recommended by the NATO Temporary Council Committee, adding that other coun- tries were doing no better and some worse than the TCC had sug- gested. Pinay alluded to the fact that two months had gone by since his letter to our Ambassador on the subject of aid and that in the meantime the French Government had gone ahead with plans based on the $650 million figure, which he now strongly requested us to provide. Our Ambassador states the main point of the meet- ing, however, was that it was up to the French to estimate what they could afford and not for the US to do so. Embassy Paris now be- - lieves it most unlikely the French will develop a budget calling for more than, if as much as 1252 billion francs from their own resources. SECRET SEGURITY INFORMATION