SECRET COPY NO. ( ö
DRAF T MINUTES NATO FEC STAFF (51) M-35 25>thJanuary, ' 1951
NORTH ATLANTIC TREATY ORGANIZATION
DEFENCE FINANCIAL Aï© ECONOMIC ' COMMITTEE
Thirty-fif th Meeting of the Permanent Working: Staff held at 3P»m. on Tuesday, >33rd January, 1951. in the e Confernce Room, No, I*., Chesham Street, London. S.V7.1.
Present:-
Eelgi-im ...... M. A .J. Bastin (Chairman)
Canada ...... Mr. A.E. Ritchie
Denmark ...... Mr. T. Busck-NIelsen
France ...... M. R. Junqua
Italy ...... ' Sr. G. Freddi Col. S. Marsiliani
Luxembourg ...... M. G. Hcishourg
Netherlands ...... Mr. J.M. Fehmcrs Mr. N.C. de Groot van Embden
Norway ...... Mr. Hersleb Vogt
Portugal ...... Sr. L .L . do Ti^go
U.K...... Mr. J, Mark
U.S...... Mr. R.C. Broithut Mr. A. Po3t Mr. G. Tuckcrman
Interpreter ...... Mi3s 3.C.K. Brodie
Secretariat ...... Mr, F.P. Kelly Mr. R.B. Hair.3 . Milo; M.T. Callon • Mise E.A. Tcdd DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MIS EN LECTURE PUBLIQUE LECTURE EN - MIS / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED
Minute3 of tho 32nd. 53rd and Vi-th Meetings. (Ref. FEC STAFF'( 51) K-35 and M-34-j
1. Approved aa amended.
Consideration of Droit Interim Report to Deputies on Mciaorandum by the Chairman of the North Atlantic Council. R [c ^ T f kC STIxFF ( 5I ) D-21/1 )
Action .
2. It was agreed that FT,'S delegates bo given an opportunity to study thia
paper and to provide the Secretariat v/ith airy ■v/rltton comments for circulation
before this oubject i3 fully discussed at the next meeting.
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D iscu ssio n
CHA3HMAN 3, The Chairman referred the PïïS tc the document drafted by the United
Kingdom delegate which wa3 distributed at the meeting. He suggested that
the United Kingdom delegate provide the FÏÏS with a 3unanaxy of the paper in
view of the fact that delegates had not been able to study it prior to the
meeting,
UNITED 4-. The Cnitcd Kingdom delegate reported that in the last meeting of the KINGDOM Working P a r it -was proposed that he prepare a report in the nature of a
draft interim report of the PITS, It had not been possible within tho time
allotted to obtain the côncurrenoe of the Working Party on this draft report
and thi3 should be ‘borne in mind in the F77S discussion. The presont draft
incorporates much of the text of the earlier Forking Party paper on this
subject (Ref. FSC STAFF (51) D-C1) with the addition of a number of points
that emerged from the 7/orldLng Party <Ü3cus3ion. It wa3 for the PWS to
decide whether this was the type of report that should be submitted or v/tk?thei
the FITS should undertake to obtain certain factual information from the
Defence Production Board. To obtain such information a3 the volume of
transfers and production involved would necessarily take considerable time.
In his view the need of the Deputies for a prompt report made it unfeasible
for the PïïS to obtain information of this character for an interim report.
5, The proceedings were suspended to give delegatesopportunity an to read
the report. 7/hilo delegates obviously were not in a position, after such
a cursory examination of the paper, to make more than preliminary and
personal observations, questions were raised with respect to tho principles
DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MIS EN LECTURE PUBLIQUE LECTURE EN - MIS / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED on nfoich the F*7S report should be based, as follows
(a) 3hould any preliminary report represent the views cf the FT/S
as a Technical Advisory Group or should approval of NAT
gov-- lents be obtained before submission of a report;
(b) in './hat way should replies to paragraphs 9 and 10 of the
High Priority Production Programme Report (Ref. D-D/192) be
incorporated;
(c) tc what extent, i f any, should the F.TS examine in detail 3uch
questions as guarantees,I n t eAtlantic r - Fund, etc.,
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6. Insofaraa vicvs v;cre expressed, there se one d general agreementthat
a preliminary report shoul d be submitted by tho PwS without askingf o r
approval by individual governments, Such a report should be cade as promptly
as possible and should go into the sub.iect deeply enough to5 ive the Doputics
a clear idea of the ramificationso f the Memorandum in question. Accordingly,
it wa3 doomed desirable to have a full discussion of this paper by the FT/S
rather than by the T7orkin£ P.^jrty in order that the form and substance of the
report to the e Dputies should be acre clearly determined. Some opposition
wr.3 expressedo ncerning c the decree "which the present draft v/ent into various
aspects of tho Memorandum, especially the naming of individual NAT qovorroenti
in connection \/ith the proposed guarantee plan. The consensus '.ns that tho
preliminary report should not necessarily express the official views of NAT
governments, that the Deputies should be "iven an opportunity to say whether
they wish to receive a report which v.ns approved by govarar.«int3 and also
v/hcthor they.Y/ish the FT7S to make such a report. As for paragraphs 9 and 10
of the Kiqh Priority production Programs Report (Ref. D-D/192),seemed it
desirable to discuss 3 thee it*:an3 separately, but to cover then in the Interim
Report,
Action
7. A Working Party, composed of the Canadian, French, United Kingdom and
United States delegates, vas appointed to3tudy the defence expenditure data
submitted v/ith tho view to reconciliation to the iaaximvn extent possible of
classification used by countries in allocating their expenditures. This
DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MIS EN LECTURE PUBLIQUE LECTURE EN - MIS / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED Working Forty was also asked to cons:!.der -what helpl d wou be required in
collating this report, such as statisticians, graphie experts, etc..
Discussion
8, The Chairman obsorv-jd that since tho 3 lat meeting replies had been
received from the Canadian delegate, the Italian delegate and supplementary
information from the United Stetes delegate. As for the procedure to bo
followed by the in co-ordinating these reports, he asked the Canadian
delegate for suggestions ?.nd for comments v/ith reference to tho Memorandum
by the Canadian Deputy (Kef. NACD. D-D(51 )1 9).
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SECRET FSC Sr/JF (51) M-55
CANADA 9. The Canadian delegate gave the FIS a brief oral backgroundsursnary
with references to the Memorandum by the Canadian Deputy and the workc f
tho ’’ancrphoua" ^roup referred tc therein, Ke considered that it might
be •v^'orth v.hile for theFTÎS to review the replies submitted -«dLth a view to
achieving maximum uniformity in the classification of defence expenditure
data. A 'forking Party night be appointed to put the replies into a cofnmon
form, cither for sending to the Deputies or for inclusion ir. a Progros3
Report,
10. At the suggestion of the Chairman, the PT7S ogrer-d tol ow fol the
procedure outlined by the Canadian delegate, Accordingly, a forking Party,
consisting of the delegates fron Canada., France, United Kingdom and United
States, was appointed. It was also suggested that the 7/orking Party should
look into the question of obtaining such assistance as statisticians and
exports or. presentation for preparation of a collated report.
Other Business,
North Atlantic Planning Board for Ocean Shiriinr. (Ref. FEC ST.IFF5 1 ) ( D-20/3 •and 0- 7.0/K )
c t i u m j s 11. The Chairman ivportcd that tho United States delegate and he had
attended a further meeting at th<; Ministry of Transport T./ith Mr. Bullwinklo
of the London Technical Conzr.ittee of NAP30S. Ko and the United States delegate
have dooided to prop ire a report which they would3 ubmit to nieabers of the
London Te-hnieal Cccmitteo of üCAFBOS, -`f ter \ixich they would 3ubrr.it it to
the P’iVS as a proposed report to the Deputies. Or. tho basis of the two
meetings vith the NAP30S representatives, tho report v/ould not go to any
great length. DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MIS EN LECTURE PUBLIQUE LECTURE EN - MIS / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED Date and Time cf Next M eeting.
12. Tho next mooting was scheduled for 10.30 a.m. on Saturday, 27th
January, 1951*
The meeting closed at 5 p .r~*
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