Memorandum of Conversation with Secretary of State Dean Acheson, James B. Carey, and Michael Ross

S/S Labor 000447 THINK 606 10V ARCHIVES "NATIONAL SERVICA^ RECORDS AND RECTRICT S - The Secretary March 29, 1949 THROUGH: S/S - Mr. Lucius D. Battle IIS - Mr. Cleon 0. Swayzee file 3/30/79 Secretary's Conference with James B. Garey, Secretary-Treasurer, CIO and Michael Ross, Director of CIO International Department. A. North Atlantic Pact - The Secretary may desire to take this occasion to emphasize the importance of CIO support for the North Atlantic Pact. Comment - The CIO has already issued a press release supporting the North Atlantie Pact and with encouragement would, we think, testify in its behalf before Congress. B. Issues Probably to be Raised - The CIO representatives may raise the following specifie issues: 1. Spain (a) Loans - They may protest any economic aid to bolster Franco. Department position - Continue to withhold approval of government loans until Spain relaxes restrictions on trade with U.S. and becomes a better credit risk. As for private financial institutions Department neither approves nor disapproves; American banks and business organizations are completely free to grant loans or credit if they desire. This is what Department told Chase National Bank before it made its $25 million dollar loan. (b) Execution of Trade Unionists - They may refer to charges that non-Communist trade unionists are being executed or given jail sentences by the Spanish Government. Department position - We assume no responsibility for Spanish Government activities. On humanitarian grounds we may make informal representations to the Spanish Government, as other Embassies at Madrid have on occasion done. No doubt jail and death sentences have been meted out to some non-Communist trade union opponents of Franco as well as to Communists - all usually charged with being Communists. 2. Occupied Areas - They may repeat critieism of labor policies of both MacArthur and Clay. AF of L leader (James Killen, Pulp and Sulphite Workers) resigned as head of SCAP labor section in DECLASSIFIED protest Actionsticity E.O. 10501