850.33/12–853
No. 185
The Secretary of the Treasury (Humphrey) to the
Secretary of State
Dear Foster: I have been handed a memorandum,1 including a proposed draft of a possible letter from the European Coal and [Page 334] Steel Community to the United States Government, following up Mr. Monnet’s discussion when here concerning a possible $400 or $500 million loan, which eliminates the World Bank as a possible source of the loan, and limits it to the United States Government sources. This means it would have to be a straight appropriation by the Congress.
I realize the lengths to which we have already gone in encouraging this thinking, but I also feel that we will be complicating our general budget picture by presenting some brand new program of this magnitude. This will be true, not only in Congress, but with the business world who, I believe, are going to strenuously object to our using their tax money to finance additional steel competition from abroad.
When Mr. Monnet was here he talked not about additional or improved steel capacity, but about the necessity for rehabilitation of their coal mines, and possibly something for their iron mines. This would involve no such sums as $400 or $500 million dollars, but this money could, of course, very easily be spent if the steel mills themselves were involved.
Again, let me say I fully realize how implicated we really are, but I think we should go very slowly in any further encouragement for the direct loan of any such sums, because of the great complications involved.
My best to you.
Sincerely,
- Presumably a reference to Bonbright’s memorandum, attached to the memorandum by Scott of Dec. 7, supra.↩