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

90. Memorandum of Conversation⁰

Paris, December 14, 1959, 10:30 a.m.

PARTICIPANTS

• United States
  • The Under-Secretary
  • Mr. Lyon
  • Mr. McBride
• France
  • Prime Minister Debré
  • M. Contamine, Cabinet of M. Debré

SUBJECT

• Problems of Common Market

After expressing pleasure at the success of Mr. Dillon’s talks in Europe, Prime Minister Debré indicated that there was one problem in connection with the Common Market which had not been emphasized enough. This was the question of the treatment of agricultural products. From the French economic viewpoint there were two principal factors. One was the achievement of the common external tariff but he did not think this was an insoluble problem and added he knew Couve de Murville had spoken to the Under Secretary along these lines.¹ However, extremely important also is the treatment of agricultural products. He noted that it was understood there would be preferential arrangements for agriculture in the Common Market but indicated difficulties had commenced. He remarked that agricultural importing countries like Germany and the Benelux countries did not want this preferential treatment. He thought in seven or eight months there would be trouble and that the difficulties of obtaining a common agricultural policy would manifest themselves. This in turn might lead to other trouble within the Common Market. He thought this problem had not been discussed enough. As evidence for his viewpoint, Debré cited the recent postponement of the agriculture ministers of the Common Market countries which had been scheduled for The Hague.² He said this session had been postponed because of the sharply differing views of the experts from the six countries who had been meeting.

The Under Secretary said that we understood the need for a preferential zone to some degree but that we hoped it would not be highly preferential and above all that it could be achieved without the use of quotas. He added this preferential zone should not appear to be a step backward towards protectionism, or lead to too great a preference. He added we well recognized that agriculture was a special problem and the most difficult issue in these questions. He noted we had the same problem in the United States and referred to our arrangements with the GATT for agricultural products. Therefore, he concluded, it was not surprising that France should have this issue, but we hoped that she would surmount it. Debré indicated he thought the problem was not insuperable.

Debré referred to Secretary Dillon’s conversations with Couve de Murville and expressed the hope that a solution to the European trade difficulty might be found through the OEEC or some parallel organization. Mr. Dillon said this was an important decision for us but that we now believe we should undertake greater responsibilities in this field. He added that our primary interest was in preventing a political scission in Europe. The principal problem was the relationship with the United Kingdom, and we wished to prevent a split between the British and the Common Market countries.

Debré said he did not believe we had any difference in appreciation of the world trade problem, but added that it was nonetheless a difficult one. In this context he mentioned the marketing of Sahara oil. Mr. Dillon replied that preferential treatment for Sahara oil was not required. He referred to recent conversations which he had held with representatives of the U.S. oil companies and said they were perfectly willing to purchase quantities of oil coming from the Sahara.³ No special regime was needed, he added. Debré did not disagree with the Under Secretary’s views, but simply said he had noted that Mr. Dillon had held discussions in Brussels on this problem.

In conclusion, Debré, who was calm and friendly, said that he was glad to see Mr. Dillon, who was an old friend, again. He noted that they had sometimes had differences of opinion when Mr. Dillon was Ambassador, but that the latter had always listened to him. Debré did not appear unduly tired for the strain of his recent trip to Senegal, his visit to Fréjus, etc.

0. Source: Department of State, Conference Files: Lot 64 D 560, CF 1547. Confidential. Drafted by McBride and approved by Brewster on December 23. The meeting was held at the Hotel Matignon.
1. No record of this discussion has been found.
2. This meeting has not been further identified.
3. Representatives of the Gulf Oil Corporation met with Department of State officials for discussions on French proposals for preferential treatment of Sahara crude oil by the EEC on October 21. A memorandum of the conversation is in Department of State, Central Files, 840.00/10–2159. Standard Oil of New Jersey representatives discussed the same subject with Department of State officials on November 10. A memorandum of that conversation is ibid., 840.00/11–1059.