611.5131/11–2545: Telegram
The Ambassador in France (Caffery) to the Secretary of State
[Received 11:45 p.m.]
6803. Embassy’s 6659, November 17, 3 p.m.2 Fonoff has informed Embassy that appointment of Billoux as Minister of National Economy has required modification of time schedule re preparation of agenda for Franco-American financial and commercial discussion.
Monnet has been called back from London instead of proceeding to Washington as reported in Embassy’s 6569, November 13, 6 p.m.2 Fonoff pointed out that there might be some difficulty in reconciling Monnet’s economic liberalism with views held by Billoux and that situation is further complicated by fact that Paul, new Minister of Industrial Production, Tillon, Minister of Armaments and Croigat, Minister of Labor are also Communists. Foreign Office referred to de Gaulle’s statement of government policy of yesterday3 in which he said that import program would be implemented to fullest extent possible under financial agreements, particularly with US, as evidence that new Cabinet wanted to go ahead with massive imports financed by US credits. On other hand, it is clear that the program of the “Delegation des Gauches” has so many closed economy aspects that it will be extremely difficult to reconcile it either with our broad commercial policy objectives or with the specific concessions which we need from French Government.
[Page 774]I desire to emphasize my conclusion from foregoing that recent political developments have multiplied dangers inherent in any procedure which would permit Franco-American financial discussions to take place unless there was discussion simultaneously of commercial policy and specific trade problems. See my 6586 November 14, noon.
Phelps concurs in foregoing.