United Kingdom

79. JOINT POLITICAL AIMS OF THE UNITED STATES AND THE UNITED KINGDOM: Communiqué by the President of the United States and the Prime Minister of the United Kingdom, January 9, 1952 1

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The President and the Prime Minister held four meetings at the White House on January 7 and 8, 1952. The Prime Minister was accompanied by the Foreign Secretary, Mr. Anthony Eden, by the Secretary of State for Commonwealth Relations, Lord Ismay, and by the Paymaster-General, Lord Cherwell. The President's advisers included the Secretaries of State, Treasury, Defense, Mr. Charles E. Wilson,2 and Mr. W. Averell Harriman.3 The visit of Mr. Churchill and his colleagues also afforded opportunities for a number of informal meetings.

At the end of the talks the President and the Prime Minister issued the following announcement:

During the last two days we have been able to talk over, on an intimate and personal basis, the problems of this critical time. Our discussions have been conducted in mutual friendship, respect and confidence. Each of our Governments has thereby gained a better understanding of the thoughts and aims of the other.

The free countries of the world are resolved to unite their strength and purpose to ensure peace and security. We affirm the determination of our Governments and peoples to further this resolve, in accordance with the purposes and principles of the United Nations Charter. The strong ties which unite our two countries are a massive contribution to the building of the strength of the free world.

Under arrangements made for the common defense, the United States has the use of certain bases in the United Kingdom. We reaffirm the understanding that the use of these bases in an emergency would be a matter for joint decision by His Majesty's Government and the United States Government in the light of the circumstances prevailing at the time.

We share the hope and the determination that war, with all its modern weapons, shall not again be visited on mankind. We will remain in close consultation on the developments which might increase danger to the maintenance of world peace.

We do not believe that war is inevitable. This is the basis of our policies. We are willing at any time to explore all reasonable means of resolving the issues which now threaten the peace of the world.

The United States Government is in full accord with the views expressed in the joint statement issued in Paris on December 18, 1951, at the conclusion of the Anglo-French discussions. Our two Govern1 Department of State Bulletin, Jan. 21, 1952, pp. 83–84.

2 Director, Office of Defense Mobilization.

3 Director, Mutual Security Agency.

Documents on International Affairs, 1951 (London, 1954), pp. 141-142.

ments will continue to give their full support to the efforts now being made to establish a European Defense Community, and will lend all assistance in their power in bringing it to fruition. We believe that this is the best means of bringing a democratic Germany as a full and equal partner into a purely defensive organization for European security. The defense of the free world will be strengthened and solidified by the creation of a European Defense Community as an element in a constantly developing Atlantic Community.

Our Governments are resolved to promote the stability, peaceful development, and prosperity of the countries of the Middle East. We have found a complete identity of aims between us in this part of the world, and the two Secretaries of State will continue to work out together agreed policies to give effect to this aim. We think it essential for the furtherance of our common purposes that an Allied Middle East Command should be set up as soon as possible."

As regards Egypt, we are confident that the Four Power approach offers the best prospect of relieving the present tension.3

We both hope that the initiative taken by the International Bank for Reconstruction and Development will lead to a solution of the Iranian oil problem acceptable to all the interests concerned."

We have discussed the many grave problems affecting our two countries in the Far East. A broad harmony of view has emerged from these discussions; for we recognize that the overriding need to counter the Communist threat in that area transcends such divergencies as there are in our policies toward China. We will continue to give full support for United Nations measures against aggression in Korea until peace and security are restored there. We are glad that the Chiefs of Staff of the United States, the United Kingdom, and France will be meeting in the next few days to consider specific measures to strengthen the security of Southeast Asia.

We have considered how our two countries could best help one another in the supply of scarce materials important to their defense programs and their economic stability. The need of the United Kingdom for additional supplies of steel from the United States, and the need of the United States for supplies of other materials, including aluminum and tin, were examined. Good progress was made. The discussions will be continued and we hope that agreement may be announced shortly.

We have reviewed the question of standardization of rifles and ammunition in the North Atlantic Treaty Organization. Neither country thinks it wise at this critical time to take the momentous step of changing its rifle. In the interest of economy, both in time and money, we have agreed that the United States and the United Kingdom will continue to rely upon rifles and ammunition now in stock and currently being produced. In the interest however of eventual standardization, we have also agreed that both countries 1 See supra, pp. 1107–1198.

2 See infra, pp. 2180-2187. 3 See ibid.

4 See infra, pp. 2261-2269. 5 See infra.

will produce their new rifles and ammunition only on an experimental scale while a common effort is made to devise a rifle and ammunition suitable for future standardization.

The question of the Atlantic Command is still under discussion. Throughout our talks we have been impressed by the need to strengthen the North Atlantic Treaty Organization by every means within our power and in full accord with our fellow members. We are resolved to build an Atlantic community, not only for immediate defense, but for enduring progress.

80. ALLOCATION OF BRITISH AND AMERICAN STRATEGIC MATERIALS: Communiqué by the President of the United States and the Prime Minister of the United Kingdom, January 18, 19521

In their communiqué of January 9, 1952,2 the President and the Prime Minister announced that they had considered how the United States and the United Kingdom could best help each other in the supply of scarce materials and that discussions were continuing.

These discussions have now been completed. Agreements have been reached which, taken together within a framework of mutual assistance, will make it possible for the two countries to carry out more effectively their common task of contributing to the strength and security of the free world. The United States will help the United Kingdom to meet its most serious shortage, steel, and the United Kingdom will help alleviate one of the United States most serious shortages, aluminum, and will also assist the United States in getting supplies of tin.

The United Kingdom requirements of steel for 1952 were reviewed in detail. On the basis of these requirements, and after allowing for supplies of foreign ore to be diverted to the United Kingdom by arrangement between the United Kingdom and the United States steel industry, the United States undertook to make available to the United Kingdom for purchase during 1952 steel (including scrap and pig iron now earmarked for the United States from overseas sources) to a total figure of 1,000,000 long tons. This includes the steel allocated for the first quarter in the previously announced arrangement. About 80 per cent of the amount supplied will be steel, mostly in the form of ingots. This represents less than one per cent of the total United States production. It has been agreed that the United States may vary the proportions between the steel products and the steel making materials to be supplied.

This will be of the greatest assistance to the United Kingdom in meeting its defense and essential civilian needs, and will help the United Kingdom industry to take care of some of the essential needs of other friendly countries for structural steel and plate steel, thereby relieving the pressure on overburdened United States facilities.

1 Department of State Bulletin, Jan. 28, 1952, p. 115.

2 Supra.

In the absence of a change in the present supply situation, it is not anticipated that any of the steel to be furnished to the United Kingdom will be supplied in structural or plate or in shapes that are in serious short supply in the United States. Most of the steel will be supplied in the last half of 1952 when a portion of the United States steel expansion program will have been completed. Deliveries to the United Kingdom will be confined to those items in reasonably free supply.

The steel shipments to Britain will be so arranged as to time and types that no cut will be required in steel allocations already made to United States industry for the first and second quarters of 1952.

United States requirements for aluminum and tin were also reviewed. On the basis of these requirements, the United Kingdom agreed to make available to the United States a total of 55,100,000 pounds of aluminum. This represents an increase, to be spread evenly over the last three quarters of 1952, of 33,060,000 pounds of aluminum over the arrangements made recently with the United States by the United Kingdom. This quantity is equivalent to about 10 percent of the total United Kingdom annual supply. The United States has agreed that it will replace this aluminum by the middle of 1953. It is expected that much of the United States aluminum expansion program will be in operation by that time.

The United Kingdom has agreed to make available to the United States 20,000 long tons of tin during 1952 at $1.18 per pound, f. o. b. Singapore. Both Governments agreed that it would be desirable if more normal arrangements for the conduct of the tin trade could be established as soon as possible.

These arrangements will enable the United States to more nearly meet its essential tin plate requirements and improve its aluminum allocations to defense and civilian industries.

It was noted that both countries would continue to use their best efforts to expand and accelerate their programs for increasing production of scarce materials, both at home and overseas.

The two Governments also reviewed and expressed satisfaction with the progress which has been made through the International Materials Conference toward effecting equitable distribution of key raw materials.

These arrangements should make a valuable contribution to the defense programs of the two countries, and increase their ability to meet the acute shortage in the free world of steel, tin plate, and other strategic materials.

81. ANGLO-AMERICAN ECONOMIC POLICIES: Communiqué Regarding Discussions, March 7, 1953 (Excerpt) 1

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Representatives of the United States and the United Kingdom today concluded their discussions on measures for creating the economic and financial conditions under which the countries of the free world 1 Department of State Bulletin, Mar. 16, 1953, pp. 395–396.

may be better able to earn their own living by their own industry. These conversations were informal and raised questions on which it was understood in advance that no commitments would be made.

The U.K. representatives explained the suggestions which emerged from the Conference of Commonwealth Prime Ministers, held in London in December of last year,1 for measures which might be taken to restore balance in the world economy through the channels of commerce and to develop, by progressive stages, an effective multilateral trade and payments system over the widest possible area. These measures would involve action by the Commonwealth countries, the United States, the countries of continental Western Europe, and the countries that are members of existing international trade and financial institutions.

The discussions covered the internal and international conditions which would have to be established in order that each country might enjoy the human and material benefits of freer and dependable currencies and a larger volume of trade and commerce.

They also included a review of the over-all economic and fiscal situation of the United States. Note was taken of the significant U.S. defense expenditures overseas, including offshore purchases.

From these conversations, certain conclusions have emerged:

There is full agreement between the two Governments that the solution of the economic problems of the free world is vital to its security and well-being.

They also agree that the essential elements of a workable and productive economic system within the free world should include

(a) Sound internal policies: International economic policies cannot succeed unless they are based on sound internal policies, by debtor as well as creditor countries. During the course of the conversations, the U.S. representatives made it clear that the Government of the United States welcomes the intention of the Commonwealth Governments, expressed in their December communiqué, to follow the internal financial and economic policies needed to achieve a freer exchange of currencies and trade.

(b) Freer trade and currencies: The freeing and expansion of world trade must cover currencies as well as trade. On the financial side the objective should be the eventual convertibility of sterling and other currencies and the gradual removal of restrictions on payments. On the trade side the objective should be to bring about the relaxation of trade restrictions and discriminations in a way which, in the words of President Eisenhower's State of the Union Message, "will recognize the importance of profitable and equitable world trade." It is in the interest of the United States to take such measures as are exemplified in the President's message in order that the members of the free world may the better pay their way by their own efforts.

(c) Development: The creation of conditions, both by creditor and by debtor countries, which will foster international investment and

1 See communiqué of Dec. 11, 1952; ibid., pp. 397–399.

2 Message of Feb. 2, 1953; supra, pp. 61-65.