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

006989 DEPARTMENT OF STATE TOP SBCRET Memorandum of Conversation 286 25 DATE: January 20, 1950 SUBJECT: conf PARTICIPANTS: Secretary of State Acheson Sir Oliver Franks, British Ambassador Mr. George W. Perkins, Assistant Secretary of State COPIES TO: S/S RA BNA ECA - Mr. Foster 1-1493 Sir Oliver opened the conversation by stating that he had received an urgent message in connection with Mr. Hoffman's visit to Paris. He said that he would first like to give some background, and after explaining the political tension existing in England, he went on to review cables which he had sent and received on the subject of ECA's policies and actions in connection with European integration. He referred specifically to his cable reporting his conversation with Mr. Bissell in which he explained the procedure which ECA was proposing to follow in connection with allocating funds on the basis of performance. He stated that it was impossible for the British Government to take any further action at the present time on the liberalization of trade, including dual pricing; and that on the question of currency interchangeability it was felt that this was still on a technical level and that it was premature to consider decisions at this time. The principal concern, however, was the question of Mr. Spaak's candidacy for the position with the OEEC. The U.K. was still willing to go along with the principle of establishing the position but they had DECLASSIFIED C.O.12065 STATE LTR. 6-12-79 By NCT-NC NARS, Date 09-4:79