Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 1

840.00/1–954

No. 192
The Secretary of State to the Director of the Foreign Operations Administration (Stassen)¹

[Washington,] January 9, 1954.

Dear Harold: Regarding the loan to the European Coal and Steel Community, I am sure you are well aware of the strong political reasons underlying my desire to proceed with a loan in an amount adequate to have a substantial impact on European opinion. At this time, we plan to eliminate economic aid to the six countries of the CSC on a bilateral basis, we are debarred by the Richards amendment from giving military aid to EDC countries,² and we have pointed out the further dire consequences likely to result from a failure to proceed with the EDC. It is vitally important therefore to make clear that we intend to provide strong support for effective action toward European union, such as the CSC represents. I am convinced that appropriate publicity following upon a decision of the United States Government to enter into negotiations with Monnet and the High Authority concerning this loan can have a significant favorable effect on EDC ratification if the terms are such as to capture European imagination.

Monnet has told us repeatedly that he believes anything less than $400 million will not be adequate for this purpose. While this may be overstating somewhat the requirements of the situation, I feel that the figure of $100 million mentioned in your proposed memorandum would not by itself produce the desired result.

We have promised Monnet to provide him with an answer, if at all possible, in time for him to present it to his Assembly which meets on January 14th. Since there still remain a number of points to be worked out and the time is short, I suggest that you and George Humphrey meet with me as soon as possible to settle this matter.³

Sincerely,

John Foster Dulles

1. Drafted by Moore; a copy was sent to Secretary of the Treasury Humphrey.
2. Concerning the Richards Amendment, see the editorial note in vol. v, Part 1, p. 973.
3. Apparently the recommended meeting between Dulles, Stassen, and Humphrey never occurred, but a consensus was reached after numerous telephone conversations. For a summary of these developments, see Document 197.