Foreign Relations of the United States, 1952–1954, Western European Security, Volume V, Part 2

751.5/10–1654: Telegram

The Ambassador in France (Dillon) to the Department of State ¹

top secret

Paris, October 16, 1954—5 p.m.

1615. Eyes only Secretary. I have not commented so far on slow down of dollar transfers to France including complete freeze on military construction because, except for information in Deptel 1765 to London, repeated information Paris 1124.² I have never been informed regarding policy decision, reasons for which it was taken or objectives it was meant to achieve.

It appears to me that irrespective of reasons which led to decision, at least one aspect of this policy should be reconsidered promptly. I refer to the freeze on all new military construction contracts. This freeze as presently applied seems to me to be far more painful to US forces than to French. Its effect on French dollar position is long term and will not be felt in time to have any influence on parliamentary debate on London accords. Effects of freeze on US forces and fact that the longer freeze continues the more it will cost us if and when construction is resumed has been fully reported to Defense by Gruenther.

For my part, I wish to state that under present circumstances, I believe that this rigid freeze on construction which is now fully known to French, is totally ineffective in furthering result which I assume US has in mind, namely, ratification of London accords by French parliament. French Government has so far kept knowledge of this freeze secret presumably because it feels that public knowledge of freeze would substantially increase difficulties of obtaining ratification.

I strongly recommend that this freeze be modified as soon as possible and that CINCEUR be given authority to pursue a flexible policy on new military construction.

Dillon

1. Attached to the source text was a memorandum by O’Connor to Merchant, dated Oct. 18, which reads in part: “I think the Secretary’s thought is that he would like to be in a position to give in gracefully on this matter to a request from Mendès-France and gain a little credit by so doing.”
2. Dated Sept. 27, p. 1279.