Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 2

751.00/6–2653: Telegram

No. 601
The Ambassador in France (Dillon) to the Department of State¹

confidential
priority

Paris, June 26, 1953—7 p.m.

6661. Reference: Deptel 6128;² Embtels 6624,³ 6643,⁴ June 21, 25, 26.

1. We believe any French Government will certainly make its foremost preoccupations to bring to attention of France’s Allies strong sentiment, brought out repeatedly during this crisis, that in view of NATO commitments, Indochina burden exceeds her capabilities even after taking into account present volume of US aid; and that France can only be brought to her feet again if her financial over-extension is reduced.

2. French attitude is that in military field NATO commitments and Indochina requirements must be looked at together. Any French Government, therefore, can be expected to seek, through increased aid, sizeable diminution of French financial contribution from own resources for military purposes.

3. In his investiture speech today Laniel said “burden which France is assuming for defense independence of Associated States, and for common cause of free peoples, is too heavy for herself alone. This question will be raised at Bermuda conference.”⁵

4. Although impossible now to forecast exactly what French Government will say on this point at Bermuda, our estimate is that financial “burden sharing” question will be raised along lines French have been urging multilaterally and bilaterally over past 3 years. We should be prepared for substantially stronger French pressure to achieve results along this line than heretofore. We have no indication that French have at this time anything in mind other than lightening burden through increased aid, in conjunction with some further reduction in the French military contribution from their own resources.

5. On basis present state of French economy and finance, we feel certain that military budget in calendar year 1953 will not be more than 1375 billion francs (Embassy despatch 2523, May 18⁶), which is 42 billion francs below figure originally voted. We doubt that France would find it possible to decrease this budget figure appreciably in current year. As to French calendar year 1954 military budget, our guess is that it will not be larger than calendar year 1953, and that there will be pressure to set an overall ceiling below this year’s level unless US aid increased substantially above projected levels.

6. Also impossible estimate with any precision how French will decide to split up total calendar year 1954 military expenditures. However, our guess is that a continuation of defense of Indochina would require expenditure in calendar year 1954 of not less than in 1953 calendar year. Therefore, if total resources available for overall military budget reduced below this year’s figure, chances seem to be that reduction would fall on NATO segment of total budget.

7. We will of course attempt ascertain something more definite as to probable French line as soon as new government is formed.

Dillon

1. Repeated to Saigon.
2. Telegram 6128 requested the Embassy’s comments on André Marie’s call for a new division of burdens not only relating to the Indochina effort but also concerning the NATO commitments. (751.00/6–1853)
3. Telegram 6624 contained an abstract of Embassy despatch 2931 which analyzed the first 4 weeks of the current government crisis. (751.00/6–2553) For information concerning this despatch, see the editorial note, supra.
4. Telegram 6643 briefly summarized Laniel’s investiture declaration. (751.00/6–2653)
5. For documentation concerning the Bermuda Conference between the Heads of Government of the United States, United Kingdom, and France, originally scheduled for June but postponed until December 1953, see vol. v, Part 2, pp. 1710 ff.
6. Despatch 2523 reported on the new financial program of René Mayer’s government. (851.10/5–1853)