Office of the Historian

1. Memorandum of Conversation0

January 16, 1958.

SUBJECT

  • Financial Assistance to France

PARTICIPANTS

  • French Ambassador Hervé Alphand
  • The Under Secretary
  • Mr. Matthew J. Looram, WE

The French Ambassador stated that Prime Minister Gaillard1 was making vigorous efforts to stabilize the French economy in the face of a very difficult Parliamentary situation. The Government had just succeeded in obtaining a vote of confidence on the deferment of veterans’ payments.2 In view of the issue at stake, it had been a hard debate and the margin of Gaillard’s victory had been very close, namely, only 20 votes. Nevertheless, the Government was determined to solve the present financial difficulties, and the Ambassador mentioned in this connection the current visit of M. Jean Monnet to the United States.3 He [Page 2] emphasized that the French purpose in seeking foreign financial assistance was not just to permit the French Government to meet current obligations but rather to help get the French economy on a solid basis and prepare it for the implementation of the Common Market.

Mr. Herter stated that the Secretary had spoken on this matter in answer to a question at the National Press Club lunch today.4 The French Embassy would in due course be supplied with a transcript of the Secretary’s remarks.

  1. Source: Department of State, Central Files, 851.10/1–1658. Confidential. Drafted by Matthew J. Looram and approved by Herter.↩
  2. Felix Gaillard, a member of the Radical Socialist Party, became Prime Minister on November 5, 1957.↩
  3. Gaillard received a 253 to 233 vote of confidence on January 16.↩
  4. Monnet visited the United States in January and February 1958 as head of the French financial mission that came to Washington to negotiate financial assistance to the French Government. On January 30, the Department of State, the Department of the Treasury, and the Export-Import Bank announced that they had concluded agreement with the French Government whereby the United States agreed to extend to France certain financial facilities amounting to $274 million. The announcements of the terms and details of this financial assistance are in Department of State Bulletin, February 17, 1958, pp. 269–274. Documentation on these negotiations is in Department of State, Central Files 851.10, 033.511, and ibid., EUR/RA Files: Lot 60 D 402, 9.6–French Aid (OEEC)–1958.↩
  5. For text of Dulles’ address, the questions, and his answers given to the National Press Club at Washington on January 16, see Department of State Bulletin, February 3, 1958, pp. 159–168. Dulles stated France could count on the United States to help the French to help themselves.↩