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BECKET 3 2967, November 17, 8 p.m. from Paris. not (rpt not) be attributed to slackness on the part of the French) French had been "burned" on their expecta- tions of aid from US during the first half of the present US fiscal year. The aumosphere of uncertainty in regard to US assistance in which France had been operating had destroyed any chance of rational planning. Monnet expanded on this last point emphasizing that unless the US cld say definitely and immediately what over-all sum in dollars wld be apent in France in the first 6 months of 1952 there wld be a serious disintegration of the French NATO program and this wld have an inevitable effect on the French def production program. He thought this wld be a great pity since he felt certain the dollars were eventually going to be spent and he felt sure that if some advance knowledge old be given, France old plan wisely and cld make a real def contribution in 1952. But, he concluded, while the technicians argued, dissolution was taking place. Both Bidault and Mayer stressed the importance of getting ahead with a program of off-shore procurement. Both felt, however, that actual expenditures for off-shore procurement wld not (rpt not) develop rapidly enough to be of much assistance in the first half of 1952, and Mayer inquired whether it might not (rpt not) be possible to use some method of pre-financing such as advance purchases of franes. Mayer added that without an amount of American assistance greatly in excess of what has heretofore been indicated, it wld not (rpt not) be possible for France to carry on at the same time the three principal tasks of Indochina, NATO, and postwar reconstruction. He said that he was contemplating asking Parliament for additional taxes that wld make France the highest taxed country in NATO, and that he wld have to adjust the import program to whatever level of revenue he was able to attain. Mayer expressed an interest in the composition of the figure of 600 millions (exclusive of the 50 million cotton loan) of expenditure referred to at the outset of the discussion. ARCHIVES RECORD% AND In reply I stated that I was not (rpt not) prepared at this a SERVICE" the time to indicate any specific break-down of the figure which I had advanced, stating that the development of the figure was a matter resting with Messrs. Lovett and Harriman. I added, however, that I felt the US old give assurance that the 600 millions of expenditures wld be achieved through one means or another provided that together we were able to make the maximum advantage of the limited time avail- able for the development of the requisite bases and other facilities. MESSAGE UNSIGNED EOC:WJS NOTE: (#) Apparent omission, correction to follow. SECRET

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    "ocrText": "BECKET\n3 2967, November 17, 8 p.m. from Paris.\nnot (rpt not) be attributed to slackness on the part of\nthe French) French had been \"burned\" on their expecta-\ntions of aid from US during the first half of the present\nUS fiscal year. The aumosphere of uncertainty in regard to\nUS assistance in which France had been operating had\ndestroyed any chance of rational planning.\nMonnet expanded on this last point emphasizing that unless\nthe US cld say definitely and immediately what over-all sum\nin dollars wld be apent in France in the first 6 months of\n1952 there wld be a serious disintegration of the French\nNATO program and this wld have an inevitable effect on the\nFrench def production program. He thought this wld be a\ngreat pity since he felt certain the dollars were eventually\ngoing to be spent and he felt sure that if some advance\nknowledge old be given, France old plan wisely and cld make\na real def contribution in 1952. But, he concluded, while\nthe technicians argued, dissolution was taking place.\nBoth Bidault and Mayer stressed the importance of getting\nahead with a program of off-shore procurement. Both felt,\nhowever, that actual expenditures for off-shore procurement\nwld not (rpt not) develop rapidly enough to be of much\nassistance in the first half of 1952, and Mayer inquired\nwhether it might not (rpt not) be possible to use some method\nof pre-financing such as advance purchases of franes. Mayer\nadded that without an amount of American assistance greatly\nin excess of what has heretofore been indicated, it wld not\n(rpt not) be possible for France to carry on at the same time\nthe three principal tasks of Indochina, NATO, and postwar\nreconstruction. He said that he was contemplating asking\nParliament for additional taxes that wld make France the\nhighest taxed country in NATO, and that he wld have to adjust\nthe import program to whatever level of revenue he was able\nto attain. Mayer expressed an interest in the composition\nof the figure of 600 millions (exclusive of the 50 million\ncotton loan) of expenditure referred to at the outset of the\ndiscussion.\nARCHIVES RECORD% AND\nIn reply I stated that I was not (rpt not) prepared at this\na\nSERVICE\"\nthe\ntime to indicate any specific break-down of the figure which\nI had advanced, stating that the development of the figure\nwas a matter resting with Messrs. Lovett and\nHarriman. I added, however, that I felt the US old give\nassurance that the 600 millions of expenditures wld be achieved\nthrough one means or another provided that together we were\nable to make the maximum advantage of the limited time avail-\nable for the development of the requisite bases and other\nfacilities.\nMESSAGE UNSIGNED\nEOC:WJS\nNOTE: (#) Apparent omission, correction to follow.\nSECRET"
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