Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of France Henri Bonnet, Paul Reynaud, and Robert H. McBride

8. 5284 AND DEPARTMENT OF STATE . RECORDS SERVICE* 962 Memorandum of Conversation CONPIDENTIAL SECURITY INFORMATION DATE: May 6, 1952 SUBJECT: Indochina, North Africa, Stability of Franc, EDF 155 PARTICIPANTSThe Secretary M. Paul Reynaud Ambassador Bonnet Mr. McBride - WE COPIES TO: EUR - Mr. Perkins PSA - Mr. Lacy Amembassy, Paris Mr. Bonbright Mr. Gibson Amlegation, Saigon WE - Mr. Byington NEA - Mr. Berry AmConGen; Tunis Mr. R. Knight AF - Mr. Bourgerie AmConsul, Rabat RA - Mr. Martin Mr. Richey Mr. Parsons FE - Mr. Allison u. s. GOVERNMENT PRINTING OFFICE 16-61120-1 M. Reynaud stated that the Indochinese burden was becoming increasingly difficult for France to carry, and that over four hundred billion francs had been appropriated for the war in Indochina this year, and that as much as another one hundred billion might be required before the end of the year. He noted that the effect on the French reconstruction program had been considerable, and that much wartime destruction still had not been repaired. He said that prior to his departure from Paris, Foreign Minister Schuman had told him that a majority existed in the cabinet at that time in favor of withdrawal from Indochina. He added hastily that the cabinet of course did not vote like the Assembly, but reiterated that such a feeling existed in that body. The Secretary said that we were of course aware of the heavy burden which France was bearing in Indochina and were sympathetic thereto. Passing to the subject of North Africa, M. Reynaud stated one could not speak of a purely Tunisian problem but only of a general North African one, be- cause any measures taken in Tunisia had repercussions at once in Algeria and Morocco. He stressed that the French problem there was entirely different from, for example, the British position in Kenya or the Gold Coast, because there were over 1,500,000 Frenchmen in North Africa. He said the problem was more like that of South Africa where there was a white minority of twenty per cent. He added he had visited Morocco last month and had been told again by people there that if the French left North Africa, there would be breakdowns in utilities within a matter of days and that a collapse of the transportation system, etc., would follow shortly. He brought out the point that the active DECLASSIFIED nationalists E, O. 11652, Sec. 3(E) and S(D) or m 5-1-26 Dept. of State letter, $17.9.1973 Ba NLT. H NARS Date 7-1676 CONFIDENTIAL SECURITY INFORMATION