Office of the Historian

271. Memorandum of Conversation0

US/MC/27
April 14, 1960, 3 p.m.

FOREIGN MINISTERS MEETING

Washington, D.C., April 12–14, 1960

SUBJECT

  • Future of EEC—Greek Desire for EEC Association

PARTICIPANTS

  • Italy
    • Foreign Minister Antonio Segni
    • Ambassador Manlio Brosio
    • Ambassador Carlo Alberto Straneo,
    • Director General, Political Affairs,
    • Italian Foreign Office
    • Dr. Federico Sensi, Italian Foreign Office
  • United States
    • Under Secretary Dillon
    • Mr. R.H. McBride—WE
    • Mr. Wells Stabler—WE
    • Mr. H.M. Phelan—WE
    • Mr. William J. Porter—AFN

Foreign Minister Segni said that he would like to discuss and seek the Under Secretary’s views on the current problems facing EEC. In [Page 590] Segni’s view the most urgent problems facing EEC stemmed from the acceleration-production proposals now under consideration, and the necessity that the Common Market develop in the most liberal manner possible. Italy had been a strong supporter of the Common Market principle from the beginning. Aside from the obvious economic advantages of participation, Italy felt that the EEC had great political value as well. The institution, if allowed to develop in a normal fashion, would constitute a bulwark in the common Western defense against the Soviet threat. The strength of a cohesive group was always greater than the combined strength of its single members. Italy fully understood the necessity for pursuit of liberal trade policies by the EEC. Only in this way could the EEC avoid economic conflicts with its Western neighbors. As far as Italy itself was concerned, Segni said that he had assured Ambassador Zellerbach last week that Italy had under active consideration a further step toward liberalization of trade with the dollar area.1 He hoped to be able to give Ambassador Zellerbach more precise data on Italy’s next step soon after his return. The Minister then asked the Under Secretary for his views on the future of the Common Market.

The Under Secretary replied that we had always favored the principle of European integration. It was most important from the political viewpoint, since the push from the East could only be met by the establishment of a strong group in central Europe. Economic integration could strengthen the economies of the participants.

With regard to acceleration,2 the Under Secretary said that we wished the Common Market to develop as rapidly as it could as long as no damage was done to others in the process. We, at first, opposed the acceleration proposal feeling that it should have been discussed in GATT before being effected. However, when the common tariff reduction feature was added, we felt it was desirable to proceed without delay. We do not believe that proceeding with development of the EEC should lead to a split in Europe and we think the danger of such has been exaggerated. We have always believed that negotiations can eliminate difficulties. When it comes to the details of acceleration we, of course, do not take a position. We do, however, believe that a decision on the acceleration-reduction proposals should be reached promptly. The greatest difficulties now appear to stem from indecision. Once the [Page 591] decision is made we believe that EFTA will then and only then take the decisions necessary to live with it.

[Here follows discussion of Greek membership in the EEC.]

  1. Source: Department of State, Central Files, 396.1–W/4–1460. Confidential. Drafted by Phelan and approved in U on April 22. The meeting was held in Under Secretary Dillon’s office in the Department of State. Separate memoranda of this conversation were prepared; see Document 272. Memoranda covering observers at OECD meetings (US/MC/28), civil aviation negotiations (US/MC/30), exports to Cuba (US/MC/31), tariffs on tobacco (US/MC/32), and dollar liberalization (US/MC/36) are in Department of State, Central Files, 396.1–W/4–1460.↩
  2. Apparently Segni was referring to a conversation with Zellerbach in Rome on April 1. Zellerbach reiterated U.S. concern about continued discriminatory restrictions against the dollar and presented Segni with a Note Verbale on the issue. Segni assured Zellerbach that he strongly favored freer trade. The memorandum of this conversation, dated April 1, was sent to the Department of State as an attachment to despatch 951, April 4. (Ibid., 611.65/4–460)↩
  3. For text of the statement recommending acceleration of the Rome treaty, see R.I.I.A., Documents, 1960, pp. 143–152.↩