Statement by the President Upon Completion of the Mission of Secretary Anderson and Under Secretary Dillon to West Germany

THE SECRETARY of the Treasury and the Under Secretary of State this morning reported to me, personally, on conversations they conducted last week with officials of the Federal Republic of Germany which were conducted in a cooperative and friendly spirit by the delegations on both sides, with a complete mutual willingness to explore proposals.

I believe that the discussions were most useful. They developed agreement between the two countries on the necessity of maintaining a sound international financial system, not only for the economic well-being of the countries involved but so that each country may continue to provide the resources basic to the common security of the nations of the Free World.

As a result of these talks there is a greater acceptance of the United States view that there must be basic improvement in the United States balance of payments position as an essential part of maintaining the Free World's financial system, depending as it does upon the dollar as a cornerstone.

Secretary Anderson and Secretary Dillon, both in substance and in presentation, carried out my instructions. These had been fully coordinated with the Secretary of State and the Secretary of Defense and had been made known in advance to the Government of the Federal Republic of Germany.

Although the matter of sharing in some way a portion of the total cost of United States Troops in West Germany was discussed, in accordance with the announcement made in Augusta on November 15, 1 it did not result in agreement. However, the discussion contributed greatly to a growing understanding of the problem.

¹ The President referred to a statement by Secretary Anderson. See Item 362, footnote 2.

It was agreed with the Federal Republic of Germany that there should be a continuation of discussions on a number of other points which could not be fully explored in a short meeting but which are designed to lead to the betterment of the United States balance of payments position. These various proposals, some suggested by the Germans and some by the American representatives as possible partial aids to our common problem, will continue to be negotiated in Bonn and in Washington.

The American delegation expressed appreciation of the decided speedup and greater flexibility of a proposed German program for development aid to developing countries, recognizing fully the major importance of this new program recently introduced by the Federal Republic of Germany.

Among other problems upon which there will be continuing discussions are the removal of remaining restrictions on imports of agricultural products from the United States, an enlargement of procurement of military items by the Federal Republic of Germany for its own forces, and consideration of procuring military items which might be supplied to other countries of the NATO alliance.

On the way home from Bonn, Secretaries Anderson and Dillon informally exchanged views with French and British officials as well as United States officials in Paris and London on matters of mutual interest, particularly the world financial system.

I am confident that greater world understanding will result from the conversations, and will serve both our national and international interests by helping to reinforce the soundness of the Free World's financial system.

The United States is determined to take whatever decisions are necessary and appropriate consistent with its devotion to a free economy and as are necessary to protect the integrity of the dollar.