Memorandum of Conversation
May 15, 1951
Participants: Ambassador Franks, British Embassy Mr. Stokes, Lord Privy Seal Secretary Acheson Willard L. Thorp
Copies to: S BNA TRC-Mr. Radius CMP-Mr. Brown
The first subject for discussion related to Mr. Stokes' new assignment in which he said that the full details had not yet been worked out, and that he had come here merely because this seemed to be the best week for him to be away in view of the Parliamentary recess. He is basically responsible for seeing that the U.K. has the raw materials which it needs. This involves both procurement and the development of new sources of supply. He would also have an interest in east-west trade, along with other agencies of the Government. The Ambassador said that Mr. Stokes was not here to press on any particular matter, and Mr. Stokes elaborated by saying that his real concern was to become familiar with the British representatives and their American counterparts. He believed that the IMC must be made to work, a view which the Secretary seconded. Mr. Stokes stated that they had no slack in unemployment which could be taken up, and that therefore the success of England turned entirely about productivity. Productivity was in part a function of the flow of raw materials. If the pipe line was full then the labor force had the full opportunity for achievement. He felt that his responsibility therefore was to assure an adequate supply, and that this was basic to the British effort.
When Mr. Stokes was about to leave, he mentioned the fact that he did have a special interest in the iron ore supply, that because of the shortage of scrap the high-grade ore from North Africa assumed a major importance, that the bottleneck here was shipping and that the failure to make additional shipping arrangements would reduce steel production by 500,000 tons which was a very significant fraction of the British output of 16 million tons.
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