851.5043/8–2348: Telegram
The Secretary of State to the Embassy in France
us urgent
3353. Feel it important our agreement with Emb analysis wage-price situation given in urtel 43411 Aug 23 be made known to both ECA and French Gov. You may in your discretion and after consulting ECA Mission informally give French to understand we would not regard some immediate wage and/or cost of living increases now as [Page 646] incompatible with long-run aims budgetary stabilization and financial equilibrium. We agree fully only result of failure immediately to offer concessions to non-Communist labor (urtel 4388 Aug 24)2 would be to undermine anti-Communist labor organizations and immeasurably strengthen Communist drive in ranks labor and weaken general confidence. On budgetary and financial side such failure would further increase state burdens and weaken French economy after inevitable costly strikes. Govt might hold or at least control a new and more realistic wage-prace line after current adjustment, chiefly on wage side. ECA Administrator Hoffman cabling Harriman to this general effect today.