§ 91. Colonel Crosthwaite-Eyreasked the Secretary of State for Foreign Affairs if he will publish the terms of the letter which was sent by His Majesty's Government to the U.S. Government as the preliminary to the bilateral pact required from the countries accepting Marshall Aid.
§ 2. Mr. MayhewThe letters exchanged between the United States Government and the British Embassy, Washington in accordance with the terms of Section 115(c) of the United States Economic Co-operation Act were released to the Press on 8th May.
Following are the texts of these letters:
Texts of the notes exchanged by the U.S. Department of State and the British Embassy, Washington, concerning the adherence of His Majesty's Government in the United Kingdom to the purposes of the Economic Co-operation Act, 1948, and its intention in accordance with the Act to negotiate an agreement with the U.S. Government.
State Department Note.
I have the honour to refer to the Economic Co-operation Act of 1948 (Title I of the Foreign Assistance Act of 1948) which became law on April 3rd, 1948.
You will note the general requirements of the Act that before assistance may be provided by the United States to a country of Europe which participates in a joint recovery programme based on self help and mutual co-operation, an agreement must have been concluded between that country and the United States as described in sub-section 115 (b) of the act. However, before such an agreement is concluded and until July 3rd, 1948, the United States Government propose, under the terms of sub-section 115 (c) to arrange to perform with regard to the United 199W Kingdom those functions authorised by the act which may be determined to be essential in furtherance of its purposes. This action by the United States Government is contingent upon the requirements of sub-section 155 (c) of the Act being fulfilled.
Accordingly I should appreciate your notifying me whether the British Government adheres to the purposes and policies in furtherance of which the Act authorises assistance to be provided and is engaged in continuous efforts to accomplish a joint recovery programme through multilateral undertakings and the establishment of a continuing organisation for this purpose and also whether your government intends to conclude an agreement with the United States in accordance with sub-section 115 (b). The purposes of the Act are stated in the whole sub-section 102 (b) and the policies referred to in sub-section 102 (b) are those designated as such in sub-section 102 (a).
Since Subsection 115 (c) of the act predicates furnishing of assistance upon continuous compliance with such provisions of Subsection 115 (b) as my Government may consider applicable, I should appreciate your advising me whether the British Government is already taking national measures necessary to carry out applicable provisions of Subsection 515 (b) and will continue to take such measures as long as assistance is made available to it pursuant to this note.
During the period covered by this note assistance may be furnished to the United Kingdom under the Act on terms of payment or by grant. It is anticipated that during the period covered by this note a proportion of assistance furnished to the United Kingdom will be by grant. Consequently my Government would like to have the agreement of the British Government that the United Kingdom will make deposits in pounds (sterling) upon notification by my Government, in amounts commensurate with the dollar amount of assistance furnished here-under designated as a grant, such deposit to be available for administrative expenses incurred by my Government in your country under the Economic Co-operation Act, 1948, and to be held or used for such other purposes as may be agreed between our two Governments. My Government will shortly advise you of the procedure for determining dollar amount assistance. The provisions of future agreement between our two Governments concerning any deposits to be made pursuant to paragraph (6) of Subsection 115 (b) will apply with regard to all such assistance for the United Kingdom which is determined to have been made by grant during the period covered by this note.
It is anticipated that my Government may decide to offer some part of assistance to be furnished to the United Kingdom pursuant to this note as a loan or on other terms of payment. In that event, the terms of payment will be determined in accordance with the Act.
I am sure your Government understands that the proposals set forth in this note cannot be viewed as constituting an obligation on the part of the United States to make assistance available to your country.
200WBritish Note.
I have the honour to acknowledge receipt of your note of today's date regarding the passage into law of the Economic Co-operation Act of 1948.
2. I am directed by His Majesty's Principal Secretary of State for Foreign Affairs to inform you that His Majesty's Government in the United Kingdom have taken note of the provisions of the Act and of the various points made in your note under reply. I am authorised to declare on behalf of His Majesty's Government in the United Kingdom that they adhere to the purposes and policies of the Economic Co-operation Act of 1948, which are stated in the whole of Subsection 102 (b) and in Subsection 102 (a) respectively, and in furtherance of which the Act authorises assistance to be provided to the United Kingdom. His Majesty's Government also intend to conclude an agreement with the United States Government pursuant to Subsection 115 (b) of the Act.
3. Since Subsection 515 (c) of the Act predicates furnishing of assistance upon continuous compliance with such provisions of Subsection 115 (b) as the United States Government may consider applicable, His Majesty's Government wish me to inform you that they are already taking national measures necessary to carry out applicable provisions of Subsection 115 (b) of the Act, and will continue to do so as long as assistance is made available to them in accordance with your note.
4. His Majesty's Government are making continuous efforts to bring about, together with other participating Governments, a joint programme of European recovery, and to that end His Majesty's Principal Secretary of State for Foreign Affairs signed on 16th April the Convention for European Economic Cooperation, which contains multilateral undertakings and establishes a continuing organisation of participating Governments.
5. His Majesty's Government have noted the contents of paragraph 5 and paragraph 6 of your note and agree to make deposits in pounds sterling, upon notification by the United States Government, in amounts commensurate with the dollar amount of assistance furnished under the terms of your note and designated by the United States Government as a grant. These deposits will be available for administration expenses incurred by the United States Government in the United Kingdom under the Economic Co-operation Act of 1948, and will be held or used for such other purposes as may be agreed between the two Governments. It is understood that the provisions of future agreement between His Majesty's Government and the United States Government concerning any deposits to be made pursuant to paragraph 6 of Subsection 115 (b) will apply with regard to arrangements for assistance for His Majesty's Government which is determined to have been made by grant during the period covered by your note.
6. Finally I am directed to state that His Majesty's Government understand that proposals set out in your note do not constitute 201W an obligation on the part of the United States Government to make assistance available to the United Kingdom.