Page:Pentagon-Papers-Part V. B. 3. a.djvu/94

 STATE

Apr 26, 1953 9 PM Recd SRE Apr 27 0607

From: Paris SENT SECSTATE WASHINGTON PRIORITY

STATE pass DMS, MSA, Treasury, Defense.…limit distribution

Following is text or memorandum on aid, dated Apr 26, referred to in immediately preceding telegram:

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1. The U.S. Delegation has given further study to the question of aid to Fr from the MSP, and related matters.

It Is understood that the Fr govt will present its financial plans to the Fr Parliament in May of this year. It is understood from the Fr govt that these financial plans as prepared by the Fr govt will include certain reductions in the current 1953 budget, which may entail certain unavoidable reductions in defense expenditures; certain tax reforms designed to bring in some additional revenue; and arrangements for internal financing adequate for the remainder of 1953. It is understood that there is also a need for additional dollar resources to be made available at an early date.

2. In light of the extension of the war in Indochina by the new aggression in Laos, the US is now prepared to make this one immediate unconditioned commitments to make available to Fr the sum of $60 million as a grant from the MSP as an advance payment in relation to US FY 1954 aid to Fr. This $60 million, or such portion as may be required, may be used as a special resource to pay any balances needed in the EPU settlements.

3. Subject to substantial achievement of the financial program contemplated by the Fr govt and described in para 1 above, the US will give favorable

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