740.5/1–1353

No. 146
The Assistant Director for Mutual Security (Tannenwald) to the Under Secretary of State (Bruce)

secret

Dear David: You will recall that about a week ago you and I discussed again the question of a circular airgram on the subject of European integration.1 I indicated to you at that time that we had reservations about the failure of the State Department draft to set forth clearly the need for United States support and encouragement of progress toward integration.

You suggested that we prepare a redraft of the cable which would incorporate our views. I have had this redraft prepared and am enclosing a copy herewith, together with a copy of a memorandum to me from Harlan Cleveland, dated January 10, 1953, which deals with the redraft.

In view of the present crisis in European integration and the fact that the new Administration will take office in a week, I seriously question the advisability of sending such a cable at the present time. However, I believe that the problem of European integration is one that should promptly be dealt with by the new Administration and perhaps the enclosed draft cable will facilitate the reaching of a decision.

Sincerely yours,

Ted
[Page 261]

[Enclosure]

Memorandum by the Assistant Director for Europe of the Mutual Security Agency (Cleveland) to the Assistant Director for Mutual Security (Tannenwald)

secret

Subject: Redrafting of State Department Circular Telegram on European Integration.

Attached is the MSA redraft of the State Department Circular Telegram on European integration. I have a strong feeling that events have overtaken the cable and that it would probably not serve a useful purpose to send it out at this time. However, pursuant to our conversation I have undertaken to redraft the cable along the lines we discussed.

The State Department draft dealt with a number of important policy questions, in a manner with which we were in general agreement. Our principal difficulty with the cable was that it did not recognize sufficiently the importance of U.S. leadership in connection with European integration. As a consequence, it presented a somewhat distorted picture.

In redrafting the State Department cable, we have been at some pains not to enlarge its scope. The cable, therefore, does not now deal adequately with what is clearly the most important policy problem facing the United States with regard to Western Europe—EDC ratification and the crisis in European integration.2

The EDC, in some form, still appears to be the best, if not the only framework in which the French would consider accepting a German defense contribution. If, as it appears, German rearmament is not feasible without French acquiescence, ratification of a revised EDC seems imperative if German contingents are to be added to the NATO forces. Loss of the EDC would also mean the defeat of a second major U.S. policy toward Western Europe, support of European integration. The EDC Treaty will in any event have to be reopened as a result of the recent French crisis; this is therefore the time to consider changes in the EDC Treaty, and in the conditions under which the EDC problem is posed in the minds of the French, in order to preserve the EDC as the means of achieving a German military contribution and continuing the movement towards European integration. The subject is an extremely complex one, and we are probably not in a position to send anything to the field at this time.

[Page 262]

Toward the end of next week I hope to be able to forward a briefing paper for Mr. Stassen, which will review recent developments on the integration front, analyze some of the current problems from the economic point of view, and tentatively suggest some of the arrangements that will have to be considered in recasting U.S. policy to meet the new situation.

Harlan

[Attachment]

Draft Circular Telegram by the Mutual Security Agency

secret

Subject: U.S. Policy on European Integration

1.
This is State/DMS/MSA cable.
2.
In light of recent discussions of European integration and related matters at Ambassadors’ Meeting in London,3 we believe it might be useful to outline our views on general question of Eur integration and the strengthening of the North Atlantic Community with particular reference to the Schuman Plan, EDC and related developments.
3.
We may first reaffirm our general position, that support of European movement towards integration is a key element in U.S. policy toward Western Europe. USGov continues to feel that further progress towards political federation, military integration and economic unification in Europe are necessary as a means of building strength, establishing security, and preserving peace in North Atlantic Area. The specific institutions which have been evolved, ECSC and the EDC, represent a response to the European desire to provide by united efforts for the prosperity and security of Western Europe. As indicated in the Tripartite Declaration of May 27, 1952,4 we also consider that the establishment and development of these institutions of the European Community correspond to our own basic interests and will therefore lend them every possible cooperation and support.
4.
We feel that the creation of European organizations is primarily a task for the Europeans themselves and that there can be no substitute for Eur initiative in the complex and difficult task of building a united Europe. If an enduring union is to be established in Europe, it must be European in concept and reflect the traditions [Page 263] and requirements of Europe. The changes involved are not easy ones to make, however, and inertia or active resistance is inevitably encountered. It is this fact that has made U.S. support and encouragement so important in the past in achieving the practical realization of such European ideas as the Schuman Plan or the proposal for a European Army. Conversely, any doubt on part of Europeans as to firmness of U.S. support necessarily has effect of weakening movement. For example, U.S. and U.K. assurances contained in Tripartite Declaration have been essential element in gaining acceptance of EDC concept. It is U.S. policy to continue its support and to make it as effective as possible in the interest of facilitating further progress.
5.
If some form of political federation and economic unification are to be achieved in the foreseeable future, it is highly important that forward motion not be lost. We therefore attach special importance to the continued movement in the direction of federation represented by the proposals for the establishment of a European Political Community. The EPC is the logical successor to the CSC and the EDC, and provides the political auspices under which new departures might, in time, be undertaken.
6.
It is important to establish, from the first, close and cordial relationships between the institutions of the Continental Community and third countries, especially the political orientation of the new grouping, and as a means of encouraging progress toward further unification of the Six by giving important elements in the Six countries the reassurance they wish that progress in this direction will not result in isolation. The U.S. relationship with the Continental Community should be constructed in such a way as to be fully consistent with the decision on the part of the Six to give the new institutions supranational authority, and so as to support this trend. For example, a device such as has been agreed between Monnet and Weir, i.e., a joint committee between the High Authority of the CSC and British Representatives in Luxembourg for the consideration of common problems, is consistent with this approach; the Council of Europe proposal for third-country observers in the institutions of the Coal and Steel Community is not. It is, of course, desirable, that the Six Countries continue, in the future, as they have in the past, to leave the way open for accession by any state, such as Austria, that is prepared to undertake the same obligations.
7.
There can, of course, be no complete guarantee that a federation of the Six Countries, if it were to be achieved, would be a consistent supporter of those Free World objectives in which we believe. We believe, however, that recognition of this risk should not lead us to discourage progress in this direction, but rather to put [Page 264] added emphasis on the necessity for building sufficiently close relationships between the Six Countries and the U.S., the U.K., and the other countries of Western Europe so that the risk is minimized. Integration of the Six continental countries is complementary to the continued growth and strengthening of the Atlantic Community as a whole. The two developments mutually reinforce and strengthen one another. Therefore, the U.S. should encourage participation by the Continental Community acting as a single unit, in broader arrangements such as the OEEC and NATO, and the concurrent strengthening of these broader organizations so that they impose a real obligation on their members to act in a manner which is consistent with an increase in strength and community of interest for the entire area. This development is a natural complement of participation by non-CSC countries in the institutions of the Six.
8.
In the military field, this implies treating the EDC, once it has been established, as a single but key element in all NATO plans, as well as in bilateral relations with the U.S. In the political field, it means strengthening the habit of consultation among NATO members on foreign policy questions and broadening the area of discussion. In the economic field, it is not yet clear what the organizational implications of the EDC will be. Ratification of the EDC will involve the extension of the single market in coal and steel in the Six Countries to the field of defense production. This follows from the requirements in the EDC Treaty that bidding on EDC contracts be competitive and that contracts shall not be denied to an enterprise on grounds of nationality. Because of these economic consequences, some aspects of the EDC will require coordination with the OEEC. Thus, the EDC will have political and military relations with NATO, and economic relations with the OEEC.
9.
The U.S. has supported the EDC because it believes that only if Europe achieves a degree of unity can it hope to develop further and to deal successfully with the political and economic problems that are going to confront it, and because it sees in the EDC the best answer to the problem of Franco-German rivalry and a German contribution to the defense of the free nations. If the EDC is not ratified, the achievement of all of these objectives would be seriously endangered and a thoroughgoing re-examination of U.S. policy toward Western Europe would be necessary.
  1. This is a reference to Document 129.
  2. For documentation concerning U.S. efforts to encourage ratification of the EDC Treaty, see vol. v, Part 1, pp. 571 ff.
  3. See Documents 301303.
  4. For the text of this declaration, see vol. v, Part 1, p. 686, or Department of State Bulletin, June 9, 1952, p. 897.