Foreign Relations of the United States, 1958–1960, Western European Integration and Security, Canada, Volume VII, Part 1

110. Telegram From the Embassy in the United Kingdom to the Department of State⁰

London, March 24, 1960, 10 a.m.

4657. Re: A. Embtel 4590.¹ B. Embtel 4543.² Since Monday both Heathcoat Amory and Lloyd have made comments to me strongly critical of “US policy of active intervention in lining up support for EEC commission proposal”.³ Lloyd expressed strong view that our course could lead to trade war between UK and Germany which in turn might require UK troop withdrawals and could even lead to break-up of NATO. Lloyd said he was sending message to Washington along these lines.⁴

Apparent that views of Amory and Lloyd based on conviction that our action in support commission proposal is inconsistent with their understanding of position taken by Dillon in evening conversation with Amory in January in Paris⁵ in which they believe Dillon to have stated the US would favor solution which would result in minimum discrimination and generalization of reductions. Both Amory and Lloyd hold to conviction that commission plan will increase friction between Six and Seven rather than reduce it. As indicated reftel (B) British had contemplated that neither Six nor Seven would have firm positions at March 29 Trade Committee meeting. Against this background, sharp adverse reaction of Amory and Lloyd was apparently triggered by press reports reftel (A) indicating US took initiative in securing Adenauer endorsement of commission plan and their realization that US now firmly committed to commission proposal.

In subsequent conversation with Beale, March 23, Sir Frank Lee, Joint Permanent Secretary, Treasury, expressed hope that, in spite of emotional reactions to latest developments, trade committee talks would proceed amicably. He confirmed Embassy’s earlier estimate (reftel B) that British see likely outcome as Six and Seven proceeding on their separate ways on July 1.

Whitney

0. Source: Department of State, Central Files, 375.800/3–2460. Confidential; Priority. Repeated to Paris.
1. Telegram 4590 from London, March 21, reported on British press reaction to the March 4 endorsement by the Department of State of the latest Hallstein proposals. (ibid., 375.42/3–2160)
2. Telegram 4543 from London, March 17, reported on informal discussions with British officials on procedural aspects of the trade committee meeting of the OEEC nations. (ibid., 398.00-PA/3–1760)
3. See Document 107.
4. Not further identified.
5. See Document 96.