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consideration to a proposal for an Ex-Im Bank loan in the amount of one-half ($100 million) of the existing $200 million of offshore procurement contracts, to be repaid by means of one-half of the receipts as they are earned under the contracts, and will give favorable consideration to a request for the use of the franc counterpart of the $60 million after June 30, 1953, at any time during US FY 1954 and as a part of the US FY 1954 aid program for France.

4. The further FY 1954 MSP Is dependent upon:

(a) Congressional action:

(b) a Fr defense contribution from their own resources in CY 1955 in line with NATO discussions as to France's political-economic capabilities; and (c) a Fr mil program for CYs 1953 and 1954 for its NATO forces in line with NATO recommendations, it being understood that the 1954 goals at this time are provisional only and that, as the Fr Min of Def reported to NATO, the air goals would need to be adjusted especially.

5. Subject to the conditions set forth In paras 3 and 4 above, the US will recommend to Congress a FY 1954 MSP for Fr as follows

(a) The US to provide the funds for a special Fr artillery, automatic weapons, and munitions payment program for Fr metropolitan forces assigned to SACEUR, in the amount of $100 million.

(b) The US to provide funds up to a maximum of $460 million, which is estimated to be approximately 40 percent of the current rate of expenditure on the Indo-Chinese war, of which $60 million will be advanced under para 2 hereof.

(c) Subject further to the adoption by the Fr govt of a satisfactory military program which In all its aspects holds the promise of success in I-C, the US is prepared to provide a portion of a mutually agreed

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