Foreign Relations of the United States, 1955–1957, Western Europe and Canada, Volume XXVII

36. Telegram From the Embassy in France to the Department of State¹

Paris, February 11, 1957— 8 p.m.

4017. Pass Defense, ICA and Treasury. Reference Embtels 3875² and 3969.³ In view publicity which has been given to French request for new OSP contracts and continued overoptimism French ministers on this score, unwarranted hopes are being raised among French public and parliamentarians. Moreover these hopes are likely to provide excuse in some quarters for existing long overdue economies. It seems particularly important that false hopes not be engendered just before Mollet visit in such way as subsequently to create impression in France that visit, which did not result in massive aid and OSP programs, had failed.

I therefore propose, if Department perceives no objection, to see Defense Minister when he returns from his present inspection trip in Algeria and warn him frankly that, while appropriate United States agencies will of course give careful study to his requests, current status OSP program and appropriations would clearly make impossible granting at this time more than very small fraction contracts he desires. I would propose moreover to point out to him that, as MAAG will have already indicated in presenting to Def Ministry tomorrow tentative allocation of new weapons in FY 57 MA program, grant aid of character and volume he requests is most unlikely, emphasizing particularly, as has been done repeatedly before, that United States intention is to concentrate future aid primarily on new weapons and to rely on NATO partners increasingly to assume responsibility for supplying themselves with conventional weapon and spare parts therefor.

Purpose our action would be, as indicated above, to dampen exaggerated hopes and thereby to encourage French to proceed promptly with required drastic economies. We should not wish, however, by this preliminary step in any way to prejudge possible real French need for aid in future. While magnitude of present request is obviously unrealistic in relation to United States aid programs, and timing is indicative of attempt to avoid facing up to domestic problems, fact nevertheless may be that during course current calendar year French may need considerably more military and economic aid than United States now envisages or Embassy at present recommends.

On military side (1) much of conventional equipment is becoming or has become obsolete, and (2) Algerian campaign is using up considerable matériel; replacement both these elements is probably beyond French capabilities realistically viewed. On economic side, Department is well aware of grave budgetary and foreign exchange problems which are becoming more rather than less acute. We might therefore eventually find that in absence supplementary United States aid we would be confronted by (1) steady deterioration in present conventional equipment French forces and (2) serious economic-political crisis, which French even with display much greater resolution than at present would not be able wholly to meet alone.

Fuller appreciation these possibilities will be submitted as situation develops. At moment we merely wish indicate our present negative recommendation concerning substantial new aid to France might no longer be valid some months hence.

Yost

1. Source: Department of State, Central Files, 751.5–MSP/2–1157. Confidential.
2. Telegram 3875, February 6, reported that on February 5 French Defense Minister Bourgès-Maunoury had submitted a letter describing specific types of military assistance required by France. (Ibid., 751.5–MSP/2–657)
3. Telegram 3969, February 8, transmitted the text of an article in the French press entitled “New U.S. Aid Program for France Under Study.” (Ibid., 751.5–MSP/2–857)