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CLASSIFIED
TOP SECRET
INCOMING
DEPARTMENT OF THE ARMY
MESSAGE
STAFF COMMUNICATIONS OFFICE
NR: SECTO 42
PAGE 3
Acheson thought that sets of both financial and
military experts should meet prior to arrival of Petsche
and Mooh. There must be a real understanding on our side
between Treasury, ECA, State and Defense a.s dollar financing
of foreign budgetary deficits presented many real problems
of an inflationary nature of US.
After Purther discussion in which Spofford pointed
out that some of Moch's problems re production of twelve
ton tanks and bazookas might be taken care of under HPPP,
the following plan was tentatively adopted:
(1) The Nitze group should continue its present
work with special emphasis on these problems;
(2) About October 1, French military and financial
experts should come to Washington for parallel bilateral
discussions;
(3) About October 10 they would be joined by Moch
and Petsche who would meet with Acheson, Marshall and Snyder
prior to meeting of Defense Ministers on October 16.
French then raised Indochina question. Both Schuman
and Moch pointed to need to create immediately powerful
national Indochinese armies due to necessity of repatriating
as many French forces as possible since 20 percent of French
regular officers and 40 percent of French noncoms were
frozen in Indochina. There was 72,000 men presently in local
armies but the desired. substantial increase in this number
would present budgetary problems which neither France nor
the Associated States could presently meet.
It was agreed that it was too late in the day to
continue this discussion and French expressed hope it could
be continued Comorrow before Moch's departure.
NOTE: This message has been relayed to Paris.
ACTION: G3
INFO:
CSA, 02, 04, SDLO, JCS, SEC DEF, NAVY, OMA, a
OAGO, OSA, OOA
CM IN 14616
(23 Sep 50) DTO 22 Sep/1:30 am
fs/4
DA SCO FORM
22-1
TOP SECKET
COPY NO.
15 JAN 1949
U. S. GOVERNMENT PRINTING OFFICE 1948-0-811947
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"ocrText": "CLASSIFIED\nTOP SECRET\nINCOMING\nDEPARTMENT OF THE ARMY\nMESSAGE\nSTAFF COMMUNICATIONS OFFICE\nNR: SECTO 42\nPAGE 3\nAcheson thought that sets of both financial and\nmilitary experts should meet prior to arrival of Petsche\nand Mooh. There must be a real understanding on our side\nbetween Treasury, ECA, State and Defense a.s dollar financing\nof foreign budgetary deficits presented many real problems\nof an inflationary nature of US.\nAfter Purther discussion in which Spofford pointed\nout that some of Moch's problems re production of twelve\nton tanks and bazookas might be taken care of under HPPP,\nthe following plan was tentatively adopted:\n(1) The Nitze group should continue its present\nwork with special emphasis on these problems;\n(2) About October 1, French military and financial\nexperts should come to Washington for parallel bilateral\ndiscussions;\n(3) About October 10 they would be joined by Moch\nand Petsche who would meet with Acheson, Marshall and Snyder\nprior to meeting of Defense Ministers on October 16.\nFrench then raised Indochina question. Both Schuman\nand Moch pointed to need to create immediately powerful\nnational Indochinese armies due to necessity of repatriating\nas many French forces as possible since 20 percent of French\nregular officers and 40 percent of French noncoms were\nfrozen in Indochina. There was 72,000 men presently in local\narmies but the desired. substantial increase in this number\nwould present budgetary problems which neither France nor\nthe Associated States could presently meet.\nIt was agreed that it was too late in the day to\ncontinue this discussion and French expressed hope it could\nbe continued Comorrow before Moch's departure.\nNOTE: This message has been relayed to Paris.\nACTION: G3\nINFO:\nCSA, 02, 04, SDLO, JCS, SEC DEF, NAVY, OMA, a\nOAGO, OSA, OOA\nCM IN 14616\n(23 Sep 50) DTO 22 Sep/1:30 am\nfs/4\nDA SCO FORM\n22-1\nTOP SECKET\nCOPY NO.\n15 JAN 1949\nU. S. GOVERNMENT PRINTING OFFICE 1948-0-811947"
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