6th October, 1941 •
SECRET
Dear Chance,
The question of American assistance in
carrying out certain specific projects in the United
Kingdom and olsewhere. about which you telephoned to
me on Saturday, is rather involved but the position
as wo here know it is as follows.
/ Early in August the Ambassador got a-
//     personal letter fror. Scott at the Toreign Office,
enclosing a copy of a letter datod August 1st to the
Foreign Office from Midges of the v/ar Cabinet offices
explaining that while Mr* Hopkins and Mr. Ilarriman had
been in London in July, the British authorities had
discussed with then two plans for obtaining further
American technical assistance in connexion with our
war effort.
Plan A - the more important - was con-
cerned with a proposal "that contacts should bo made
with American industrial concerns to set up organisa-
tions, either in the United Kingdom or abroad, notably
the Middle East, to undertake certain specific and
self-contained projects."
Plan B was concerned with a proposal that
the United States Government should recruit in the
U.S.A. an American Civilian Technical Corps v/hose
members would servo in British military establishments
in the United Kingdom.
Details of Plan A were set out in a v/ar
Cabinet paper "19AoA25A Paper 86. 2 of July 30th"
of which I enclose a copy herein for your confidential
information.   A copy of this paper was sent by Bridges
Council, FRHM :HS to/
/<
to Harriman on July 29th under cover of a letter of
which I also enclose a copy.    Details of Plan B
were contained in another War Cabinet paper "19/10/125/
1 Paper Ho. 3 of July 30th" but I don't think I need
send you a copy of this as you are not so directly
concerned in this proposal - which Incidentally is
the "Hovde Scheme" mentioned at the end of Bridges1
letter to Harriman.
In his letter to the Foreign Office of
August 1st Bridges wroto inter alia;-*
" 3.L!r. Harriman has taken back with him to the
United States copies of the lists relating to •
Proposal A attached to .10/10/125/1 Paper Ho. 2,
in addition to the Aide -'erioire on Proposal B
handed to-him by Lord ::aru:oy, and it is his
intention, with ".".r. Hopkins, to explore these
proposals with the United States Government
authorities on Ms arrival.
" 4.The dotails of the various•schemes falling
un^or Proposal A'will. I think, have to be
dealt with over here as only the Departments
themselves are in a position to amplify the
schemes.   The discussions about Prqpoaal A have
up to the present been co-ordinated in this
Office, and it will probably be convenient that
tliis arrangement should continue and that we
should be kept informed of all developments."
Simultaneously with the letter from Scott
Lord Halifax got one from Lord Hankey.   This was
mainly about Plan B, but it contained the following
reference to Plan A - ""otwithstanding Mr. Harriman1 s
observation recorded at the end of the summary, it is
clear that, v/hereas paper Ho. 2, as far as it is to
be impleneriBd, will have to be followed "up in London,
negotiations resulting from my paper Ho. 3 will have
to be pursued In Washington"•
it/
It will be seen from the foregoing that
both Lord Kankey and Bridges seemed to anticipate
that further discussion of Plan A would take place
in London,
On getting all these papers from London,
Lord Halifax discussed matters with the Joint Staff
Mission to whom copies 6f the documents had been
sent direct from London,   It was agreed that the
Joint Staff Mission should handle both problems
hore - but particularly Plan B since the Royal Air
Force delegation were already dealing with the rather
similar question of the British Civilian Technical
Corps.   It was the view of the Joint Staff 111 a si on
tliat no progress could be made untl1 '^r, Hopkins g6t
back.   They would then discuss both plans with him.
The next tiling that happened was that
Phillips got a telegram from the Treasury (Foreign
Office telegram to us !Io, 453B of August 14th)
roferring to Scott!s letter to lord Halifax and
saying apparently with reference to both Plans A and
B, that as the technicians involved were to be
employees of Lhe United States Government, their pay
would orommably come out of some ordinary American
Government department's appropriations and not out of
I,ease Lend Funds,   To enable Bewley to doal with this
telegram we cent him our file and in due course he
replied to the Foreign Office in a telegram Ho, 3083,
of which I enclose a copy,   Bewley also sent us a
copy of a minute by Tom Childs duted August 22ad
regarding the eligibility of Plan! A under Lend Lease
You will no doubt be able to get a copy of this
minute from Childs,
In the meantime the Joint Staff Mission
were try*nC to clear up some doubtful points - mainly
about Plan B - with the Chiefs of Staff,   I think the
only/
only extract that I need quote from their telegrams
is the following from the Chiefs of Staff, telegram
Boxes Ho. 87:-
"      The proposals in War Cabinet Papers
19/10/125/1 TIos. 2 & 3 are to be regarded
as indication of the methods by which it
is thou(£ht skilled civilian technicians
could best be obtained from the United
States, but not as any measure of actual
numbers required.   With regard to Paper No.
2 v/hich enumerates tasks for which American-
firms mi#it undertake entire responsibility,
departments v/ere particularly asked to con-
fine their specific proposals to"a few
urgent works of first importance. Many
further items could be specified if there
is any possibility of American firms being
able to undertake work".
By this time - the end of August - Hopkins
was back and we therefore asked the Joint Staff Mission
how things v/ere getting on with their proposed talks
with him on both Pins.   I spoke to Cribbett on the
subject on August 20th and as regards Plan A I made
the following record of our conversation:-
"        Mr. Cribbett said that as regards the
first project General Brett was very shortly
leaving for England and that one of his jobs
while there would be to consider the whole
of this plan.   I gathered from Mr. Cribbett
that in these circumstances the Joint Staff
Mission thought it unnecessary for them to"
take any further action here in the matter.
This"is probably the case, as in paragraph 4
of E.E. Bridges' letter to Balfour of August
1st it is stated that "the details of the
various schemes falling under proposal A will
I think have to bo dealt with over here as
only the Departments themselves are in a
position to amplify the schemes".
What/
n England.
What Cribbett said to me about General
Brett was more or less confirmed by a passage in
the minutes of a meeting of the Joint Staff Mission
held on August 29th,
Since then, though there have been
various developments in connexion with Plan B,
about which Air Marshal Harris is now in touch with
Mr. Stettinius, we have heard no more about Plan A.
I was under the impression that this Plan, with any
subsequent additions that may have been made to it,
would have been discussed by the authorities in
London - who seemed to anticipate keeping the
details of it in their hands - with General Brett
and some United States authorities in England or
that if any specific action here was required by us
instructions v/ould be sent us.
(sgd) P. H. HOYEH MILLAR
England