Office of the Historian

DMS files, lot W–1444, “France”

No. 604
The Secretary of State to the Director for Mutual Security (Stassen)

Washington, July 17, 1953.

My Dear Mr. Stassen: I am enclosing herewith a translation of an aide-mémoire which we received yesterday from the French Ambassador, regarding the interest of the French Government in securing from the Export-Import Bank an advance of $100 million against payments on United States procurement contracts in France.

This request has been made pursuant to the Memorandum on Aid handed to the French Government in Paris on April 26, 1953,1 in which it was stated that “subject to substantial achievement of the financial program contemplated by the French Government and described in paragraph 1 above, the United States will give favorable consideration to a proposal for an Export-Import Bank loan in the amount of one-half of the existing $200 million of offshore procurement contracts.” The financial program of the Laniel Government, along lines similar to the program contemplated by the Mayer Government as of April 26, has now been enacted by the French Parliament and is being implemented by the Government.

I believe that steps should now be taken to carry out the understanding given to the French Government on April 26, and I would appreciate having your views on the matter.

I am sending an identical letter to Secretary Humphrey.

Sincerely yours,

John Foster Dulles

[Enclosure]

Aide-Mémoire From the French Government

[Paris,] July 13, 1953.

It was foreseen in article 3 of the aide-mémoire submitted at Paris on April 26 to M. Georges Bidault by the Secretary of State [Page 1363] that, subject to substantial achievement in carrying out the program of financial recovery which was then under study, the American Government would consider favorably the partial financing by the Export-Import Bank of the “budgetary offshore” contracts concluded with France.

Since that time a change in Government has taken place in France.

The Government presently in power has undertaken the implementation of a program of financial recovery similar, in its main features, to that which was prepared by the preceding Government. Parliament has just approved this program and has given to the Government the necessary powers to assure its realization.

It therefore appears that the preliminary conditions set forth in the aide-mémoire of April 26 have been fulfilled.

The French Government believes that there is nothing further which would prevent the American Government from giving an agreement in principle to the financing operation of the Export-Import Bank mentioned above.

  1. Transmitted to the Department of State in Document 597.↩