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INCOMING TELEGRAM DEPARTMENT OF STATE-DIVISION OF COMMUNICATIONS AND RECORDS TELEGRAPH BRANCH B-X TOP 269 Action: EUR Control 9171 Info: SS Rec'd September 23, 1949 E 3:46 a.m. Q GA UFAA FROM: Paris DCLC ITP TO: Secretary of State . ARCHIVES SERVICE" RECORDS NATIONAL AND OFD DCR NO: 3497, September 22, 9 p.m. PRIORITY FOR THE PERSONAL ATTENTION OF SECRETARY AND UNDERSECRETARY PLEASE PASS TO. FOSTER ECA. The Premier sent for me this afternoon. Schneiter, Acting Foreign Minister was present. Queuille said he intended to talk absolutely frankly, stated that he felt his position and that of the government was less favorable today than it had been even during crucial period last year. Last year, he had possessed certain advantage in that economic situation of country was so desperate that he could carry through measures which were evidently for best interest of country as a whole by threatening to pose them on a vote of confidence. Such a situation no longer exists. Although the economic position of the country is better than it was a year ago political considerations of an international character, aside from immediate difficulties in regard to the budget for 1950, and demands for a rise in wages are of such a nature that the government had greatly lost prestige and he cannot rely on maintaining it in power, if France is subjected to any further disappointments and unexpected shocks. He went on to say that there had recently been three major incidents which had caused a large amount of questioning and, in the case of the last two, of bitter- ness in the country. First was the decision on the division of ERP aid whereby Great Britain DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or (E) mon BECKET OSD letter, 7-15-75 By NLT- HL NARS Date 9-13-76 INFORMATION COPY