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consequent necessity of planned distribution of fertilizer supplies on the basis of need. The French position on the Committee has been extremely uncooperative and truculent. Their openly expressed threat to withdraw from the Committee and withhold their supplies of potash and phosphate if their demands for nitrogen were not met succeeded in gaining con- cessions from other members. French demands for machinery and equip- ment for potash and phosphate rock mines have been vigorously and re- peatedly pressed. We have made prompt efforts to meet their requests, only to find that the French have withdrawn or modified them, or that their motive was rather to gain our support in negotiations with com- mercial suppliers. (d) Farm Equipment. We cannot accede to the urgently expressed French demand for farm machinery under present demand and supply conditions. It is necessary to give priority to UNRRA's claims because of more urgent needs of UNRRA countries and the time limitation of the UNRRA program. It is also necessary to give precedence to Canadian requirements because under the Hyde Park Agreement the manufacture of certain types of farm equipment was concentrated in the United States and production was curtailed or eliminated in Canada. 10. Aviation. A bilateral air transport agreement was signed on March 27 incorporating the same general principles as those in the agree- ment between the United States and Great Britain. The question of the return of US-built airfields in French territory depends on military and political considerations now that satisfactory rights for commercial aircraft have been obtained. In accord with our general policy, air navigation and communica- tions facilities installed by US Armed Forces have been turned over to the French under an agreement guaranteeing continued operation of the facilities. 11. Telecommunications. Our immediate objective is to obtain the same telecommunications rates from France to the United States as exist in the opposite direction, i.e. reduce 'the westbound rate from 36 to 20 cents. We also desire that the French divide the tolls with us NATIONAL equally instead of the sender's keeping them all as at present. Finally, RECORDS we desire that the French reduce their abnormally high telecommunica- SERVICE tion terminal charges. ns The French have asked to take over the Cherbourg terminal of the ex-German Horta-Emden cable, but decisions on disposition of this cable depend upon action at the Peace Conference. 12. Shipping. France's seagoing merchant fleet ranked it about fifth among maritime nations before the war. War losses reduced this fleet by almost two-thirds, and France now depends upon the tonnage of other nations, including the United States, for the ocean transport of much of the cargo essential for reconstruction. In view of the im- portance of the French merchant marine to the economic and political 8

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    "ocrText": "consequent necessity of planned distribution of fertilizer supplies on the\nbasis of need. The French position on the Committee has been extremely\nuncooperative and truculent. Their openly expressed threat to withdraw\nfrom the Committee and withhold their supplies of potash and phosphate\nif their demands for nitrogen were not met succeeded in gaining con-\ncessions from other members. French demands for machinery and equip-\nment for potash and phosphate rock mines have been vigorously and re-\npeatedly pressed. We have made prompt efforts to meet their requests,\nonly to find that the French have withdrawn or modified them, or that\ntheir motive was rather to gain our support in negotiations with com-\nmercial suppliers.\n(d) Farm Equipment. We cannot accede to the urgently expressed\nFrench demand for farm machinery under present demand and supply\nconditions. It is necessary to give priority to UNRRA's claims because\nof more urgent needs of UNRRA countries and the time limitation of the\nUNRRA program. It is also necessary to give precedence to Canadian\nrequirements because under the Hyde Park Agreement the manufacture\nof certain types of farm equipment was concentrated in the United States\nand production was curtailed or eliminated in Canada.\n10. Aviation. A bilateral air transport agreement was signed on\nMarch 27 incorporating the same general principles as those in the agree-\nment between the United States and Great Britain.\nThe question of the return of US-built airfields in French territory\ndepends on military and political considerations now that satisfactory\nrights for commercial aircraft have been obtained.\nIn accord with our general policy, air navigation and communica-\ntions facilities installed by US Armed Forces have been turned over to the\nFrench under an agreement guaranteeing continued operation of the\nfacilities.\n11. Telecommunications. Our immediate objective is to obtain\nthe same telecommunications rates from France to the United States as\nexist in the opposite direction, i.e. reduce 'the westbound rate from 36\nto 20 cents. We also desire that the French divide the tolls with us\nNATIONAL\nequally instead of the sender's keeping them all as at present. Finally,\nRECORDS\nwe desire that the French reduce their abnormally high telecommunica-\nSERVICE\ntion terminal charges.\nns\nThe French have asked to take over the Cherbourg terminal of the\nex-German Horta-Emden cable, but decisions on disposition of this\ncable depend upon action at the Peace Conference.\n12. Shipping. France's seagoing merchant fleet ranked it about\nfifth among maritime nations before the war. War losses reduced this\nfleet by almost two-thirds, and France now depends upon the tonnage of\nother nations, including the United States, for the ocean transport of\nmuch of the cargo essential for reconstruction. In view of the im-\nportance of the French merchant marine to the economic and political\n8"
}