Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 1

850.33/9–2354: Telegram

No. 225
The United States Representative to the European Coal and Steel Community (Bruce) to the Department of State¹

confidential

Paris, September 23, 1954—1 p.m.

Coled 39. Subject is CSC. Reference: Coled 35.²

1. Monnet and Spierenburg appear somewhat disappointed by the talks with Sandys. Any concrete step such as lowering of tariff on steel was declared by Sandys to be out of question at this time, though he did not exclude future possibility of such measure. High Authority nevertheless intends pursue informal negotiations on pattern and purpose of association.

2. Under circumstances Spierenburg now expects following to be agreed with British:

a. Council of association to be set up. In addition, UK Minister would participate in meetings of Council of Ministers of CSC whenever questions of common interest arise.

b. Constant consultation and exchange of information; coordination of measures to be taken in periods of crisis, with provision for independent action in case other party refuses to take joint measures. Possibility of achieving association of markets by successive steps would be studied. Despite British reticence, High Authority would pursue its proposals for tariff reductions and coordination of commercial policies to be attained without establishment any preferential system.

3. Spierenburg believes that association relationship as now envisaged would have little effect on coal trade between CSC and UK. He does not expect UK to expand coal exports, even though British coal prices will remain below continental level in future. British would, however, assure or be assured of minimum volume of coal deliveries to CSC in periods of shortage or over-production.

4. Spierenburg likewise expects association to have little immediate effect on steel trade. He understands that British steel industry is now asking for assurances against dumping in British markets but no longer fears normal competition from CSC. High authority appears prepared to agree for time being to continuation by UK of dual pricing for coal and steel, but will request assurances that in exports to CSC no discrimination will be made buyers. In case of special steels, no dual pricing is said to exist. Spierenburg hopes that UK can eventually be prevailed upon to adopt major marketing rules worked out by CSC. As concerns trade with third countries, it would remain strictly outside scope of association agreement.

5. High Authority plans to obtain full agreement with UK by day of informal talks. Prior to opening of formal negotiations, High Authority would contact CSC member states to obtain their advance approval. Formal agreement would then be reached with UK during Monnet’s London trip, with date still undecided.

Bruce

1. Repeated to London, Luxembourg, The Hague, Rome, Bonn, and Brussels.
2. Not printed; it informed the Department of State that Duncan Sandys had been appointed to head the British negotiating team in conversations with the High Authority for the purpose of working out British association with the Coal and Steel Community. Bruce reported that the British sought to help the Europeans build quickly on the basis of existing institutions, in light of the rejection of the treaty for the European Defense Community, in order to maintain the idea of continental federation. (850.33/9–1354)