Memorandum, State Department Summary of Telegrams

NLT (Navil Aide)18 DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON March 3, 1950 rop S E C R E SUMMARY OF TELEGRAMS CHURCHILL Charge Holmes in London has discussed the British government situation with a "cordial, expansive, and obviously pleased" Churchill, who stated to Holmes that the Conservative Party will continue to support the government in matters of real national interest, especially in foreign policy. Churchill added, however, that while the Conservatives will not use their parliamentary position for political maneuver in this field, he will not refrain from criticising Bevin's "stupidities and clumsiness". Churchill also stated that: 1) Attlee would go ahead and attempt to govern for a. reasonable time, although a general election in the near future is "inevitable"; and 2) controversial legislation, particularly regarding further national- ization, would probably not be introduced. Holmes received the impression that Churchill proposes to use his strong strategic position, and to take advantage of the government's responsibility for the first move. GERMANY The British Embassy here has delivered to Secretary Acheson a personal message from Bevin strongly pro- testing against our request that UK-German trade talks be sus- pended temporarily while US-UK divergences of opinion are worked out. The British feel that the German trade and payments agree- ment which they are seeking would be consistent with the liberal- ization of European trade, and would be consonant with general US desires. The British Ambassador stated to the Secretary that US interference appears to be an endeavor to dictate the UK-German agreement and to force a European payments union into a pattern desired by the US. The Secretary stated that the British had been at fault for not keeping us more fully informed of their proposals; and, while not denying the possibility of US fault in the matter, he made clear that it is not our intention to force our views on a European payments union on the British, and that we are anxious to find a middle ground on which general agreement can be reached. DECLASSIFIED CHINA E.O. 12065, Sec. 3-402 T -O P R State Dept. Guidelines, March 6, 1982 By DEB NLT, Date 5-13-85