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SECHOL the DECLASSIFIED DEPARTMENT OF STATE E.O. 12065, Sec. 3-402 WASHINGTON State Dept. Guidelines, March 6, 1982 By DEB NLT. Date 10-17-80 November 20, 1951 MEMORANDUM FOR THE PRESIDENT Subject: Economic Assistance for France The Secretary has reported about the general agreement that he and Mr. Harriman reached with the French Government on November 16, to provide United States economic assistance to France in an amount adequate to make possible the French defense effort in the coming year. The Secretary's report to you is contained in the attached telegram 2967 from Paris, dated November 17. The agreement reflects the results of two weeks of negotiations with the French. Our approach to the French in the aid negotiations has been that United States economic support for France in one form or another would be in an amount adequate to finance imports into France required to support the French defense effort and maintain a healthy French economy. The French believe that the military situation in Indo- china requires that they increase their military expenditures in that area by one-third next year. The French are also anxious, as are we, that they carry out a substantial program to increase their forces in Europe committed to Eisenhower. This latter program is not only essential to NATO defense plans in Western Europe but is also considered by the French to be a necessary prerequisite to the creation of German forces of the size which our military planners desire. It is the judgment of the United States negotiators that the French programs in Indochina and in Western Europe for the coming year are reasonable ones and justify our support. The French Government is now presenting its calendar 1952 budget to Parliament. The budget presented, particularly as it relates to defense expenditures, is to a large extent dependent on how many dollars the French can count on having to cover their balance of payments deficit. Mr. Harriman and Secretaries Acheson and Lovett have agreed that the legitimate French dollar Hinner S: LIBRARY requirements SECRET

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    "ocrText": "SECHOL\nthe\nDECLASSIFIED\nDEPARTMENT OF STATE\nE.O. 12065, Sec. 3-402\nWASHINGTON\nState Dept. Guidelines, March 6, 1982\nBy DEB NLT. Date\n10-17-80\nNovember 20, 1951\nMEMORANDUM FOR THE PRESIDENT\nSubject: Economic Assistance for France\nThe Secretary has reported about the general agreement\nthat he and Mr. Harriman reached with the French Government\non November 16, to provide United States economic assistance\nto France in an amount adequate to make possible the French\ndefense effort in the coming year. The Secretary's report\nto you is contained in the attached telegram 2967 from Paris,\ndated November 17. The agreement reflects the results of two\nweeks of negotiations with the French.\nOur approach to the French in the aid negotiations has\nbeen that United States economic support for France in one form\nor another would be in an amount adequate to finance imports\ninto France required to support the French defense effort and\nmaintain a healthy French economy.\nThe French believe that the military situation in Indo-\nchina requires that they increase their military expenditures\nin that area by one-third next year. The French are also\nanxious, as are we, that they carry out a substantial program\nto increase their forces in Europe committed to Eisenhower.\nThis latter program is not only essential to NATO defense plans\nin Western Europe but is also considered by the French to be a\nnecessary prerequisite to the creation of German forces of the\nsize which our military planners desire. It is the judgment\nof the United States negotiators that the French programs in\nIndochina and in Western Europe for the coming year are reasonable\nones and justify our support.\nThe French Government is now presenting its calendar 1952\nbudget to Parliament. The budget presented, particularly as\nit relates to defense expenditures, is to a large extent dependent\non how many dollars the French can count on having to cover their\nbalance of payments deficit. Mr. Harriman and Secretaries Acheson\nand Lovett have agreed that the legitimate French dollar\nHinner S: LIBRARY\nrequirements\nSECRET"
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