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$ RECORDS December 23, 1952 (Deci22) 378 399-b - In talking with Mr. McCloy about another matter over the telephone yesterday, I told him a little of my impressions gained on the recent trip to Paris. I said that I had to talked with Monnet, who has been very close the the Chancellor since McCloy left. Monnet also has had many talks with the Socialists and particularly with the Liberal leadérs. He thinks there is quite a split between the political SPD and the liberal unions. He believes there is a great feeling for unity in Western Europe. The coal and steel plant is The Authority 15 working "wond erfully". They are going to declare the broad market; purchases of iron ore will be open to the Belgians. The EDC countries will take EDC if it is put up strongly to them in the unification background and not in military terms. The SPD is against all armament. Monnet also has sensible ideas about getting on with political matters, such as an elected Parliament with powers restricted to administrativema tters connected with EDC and the coal and should Try assume Good new power steel plan, but with ideas added at the beginning. Eventually they should have limited power of taxation. I then said to Mr. McCloy that from all that Mr. Monnet had said I thought it was very important to get the right person as High Commissioner for Germany; that I was going to talk with Mr. Dulles about this; and that I was disturbed because I had heard that a certain person, whom I understood Mr. McCloy was in favor of, was being considered. I thought he would not be a suitable person from the point of view of the Chancellor, of Mr. Monnet, and of the French.