751.5 MSP/3–253
No. 569
The Director for Mutual Security
(Stassen) to the Secretary of
State
Dear Foster: This informal note is to advise you directly that through the normal procedures we are now in the process of allocating to France and Italy the second half of their anticipated direct dollar aid for the current fiscal year.
In the case of France, this is an amount of $135 million, which together with the $135 million released last summer brings this particular type of aid to $270 million for the year. This does not include offshore procurement, or United States military end items, [Page 1302] or the so-called special Lisbon type offshore procurement which involves paying for certain items purchased by the French Government from production within their own country. A portion of the $135 million is being promptly released to help France cover its EPU position for the March 15th settlement.
In the case of Italy, this second half is $40 million, which together with the $40 million released last summer makes a total of $80 million of this direct dollar aid. This again does not include offshore procurement or United States defense end items. We also have under active consideration and will probably allocate approximately $10 million to Italy of the so-called Moody funds for special assistance to small business. We anticipate doing both of these prior to the Italian elections and at such time as the United States country team in Italy, after consultation with the Italian Government, indicates to be the best time.
I am quite certain that all of these matters are fully known to your Department in the normal interchange of information and discussion between the staffs, but thought I would give you this direct and informal information personally.
Sincerely yours,