740.5/3–1051

Memorandum by the Director of International Security Affairs (Cabot) to the Secretary of State 1

top secret

Subject: Location of NATO.

I need your help in resolving the conflict with Defense on the proper location of NATO. The NATO staffs in London (Deputies and DPB) are dealing with economic and production problems as is OEEC in Paris. The proposed Finance and Economic Board (FEB) of NATO must cover the same problems of burden-sharing and economic mobilization for defense that concern OEEC. Division and duplication are costly, will tend to devitalize the splendid OEEC team built up by the ERP, and will slow down rearmament. It is, therefore, important to reach agreement on geographical consolidation.

The United Kingdom has officially advised us they wish to keep NATO in London. Informal advices indicate that other Europeans want it in Paris. Defense does not believe the U.S. should accept a move to Paris of NATO groups now in London. This would leave us with the alternatives of a split organization or a complete move to London, neither of which State or ECA wish us to advocate. Our advocacy of movement to London would give support to the charge that we consider Europe expendable thus discouraging our partners. Such a move might also weaken OEEC. State and ECA are not impressed by the argument that movement to Paris would make less secure the individuals and secrets with which they deal and might embarrass General Eisenhower with added political interference.

State and ECA now recommend that Ambassador Spofford seek, in the Council of Deputies, to get FEB formed immediately, located in Paris for the moment; and further recommend that he ask the other members to decide whether the rest of the NATO organization in London should be moved to Paris (about 500 personnel) or whether OEEC and FEB should be moved to London (about 800 personnel, including Ambassador Katz and his staff).

The NATO alliance is both political and military as are its problems. Unless you can resolve this problem with General Marshall, I feel it must go to the President.

Thomas D. Cabot
  1. Cleared by Perkins.