Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Great Britain Sir Oliver Franks, George W. Perkins, and Walter Surrey

330 cort December 17, 1949 Proposed Bilateral Agreements under the Mutual Defense Assistance Act of 1949. THINK ARCHIVES RECOROS 'NATIONAL AND Sir Oliver Tranks, British Ambessador : SERVICE" Mr. Dean Acheson, Secretary of State Kr. George v. Perkins, Agsistant Secretary for European Affairs Mr. Walter S. Surrey, Special Assistant to the Director, Nutual Defense Assistance Program. s, U, G, S/MDA EUR, BNA, American Embnesy, London Sir Oliver stated that he had communicated to his Government the views expressed by me at our meeting on December 14, 1949. I informed him that ve had considered very carefully the ways of meeting the major points raised by Sir Oliver in connection with the terms of the bilateral agreement. In connection with these major points, I advised him as follows: (a) Article 1, paregraph of the proposed bilateral agresment covering the transfer of military materials to other countries could be limited to the express terms of the legislation, covering only the trans- fer of the actual materials which we supply to them. (b) With respect to Article 1, paragraph 1, covering autual assistance, I advised him that ve had redrefted this Article to make clear that the British contribution to mutual assistance should not be made to such en extent as vould cause a conflict with the principle that economic recovery must have clear priority. I advised Sir Oliver that with these changes I thought that Article 1, paragraph 1 of the proposed draft bilateral agree- ment fully met the British objections as noted by Sir Oliver at his previous meeting. Sir Oliver stated that these changes would be most helpful to his Government in considering the Matter. I elaborated further the question which I hnd discussed at our previous meeting DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (B) Dept. of State letter, A 133375 By NLT- HC. NARS Date 4-2976