January 4, 1951
Memorandum of Telephone Conversation
RE: Army Procurement of MDAP Goods
In a conversation which the Secretary had with Mr. Lovett this morning Mr. Lovett said he had just come from a meeting with people of the three services and he was considerably encouraged by the Army position with regard to procuring MDAP goods. He said they have contracts let for 9 hundred million out of 1 billion 6 of fiscal 1950 funds. This leaves only 7 hundred million to be approved and contracted. He inquired if it would not be wise for the State Department to approve the end items without approving the country and then the Army could go ahead with the contracts. He pointed out that a tank for France would be the same as a tank for any other country and this would save time.
The Secretary said he thought this sounded like a good idea and said he would look into it right away.
Mr. Lovett mentioned that tanks were coming off the assembly line faster than France could receive them. It takes about 30 days for the recipient to work out the problem of what to do with them, thus causing the delay.
L.D.B.
S:DHM