850.33/10–154: Telegram

No. 226
The Deputy United States Representative to the European Coal and Steel Community (Tomlinson) to the Department of State1

confidential

Coled 43. Reference Coled 40.2 Subject is CSC.

1.
We do not yet have full details on understanding reached earlier this week between Monnet, Spierenburg, and Etel on one hand, and Sandys and Weir on other hand, during informal talks in Paris on UK association. However, substantial agreement was reached on major points along lines considered satisfactory by High Authority representatives.
2.
On basis our information, it appears institutional framework for association relationship would consist of council of association designated by UK Government and High Authority and reciprocal diplomatic representation between Luxembourg and London. Council would be entrusted with making proposals for future development of institutions of association, particularly re mechanism for settlement of differences that may arise and establishment of forum for public discussion. Council would conduct continuing consultation on matters of common interest such as evolution of coal and steel markets, labor conditions, long-term demand surveys, competitive conditions, as well as coordination in establishment of common research programs and general modernization objectives. Prior taking any unilateral action re price fixing, quotas, allocation, or other protective measures, UK or High Authority would inform other party, which could request discussion in council and propose joint action. Reasonable delay would be given to permit other party to participate in joint action or itself take unilateral measures. Council would also examine tariffs, trade and exchange restrictions, subsidies, etc., and would have power make recommendations on reduction or elimination of trade barriers between UK and CSC and on price system to be applicable to such trade. Council would be required have due regard third country interests, including special UK relationship with Commonwealth.
3.
Above is still tentative and several points remain to be negotiated; of course, formal High Authority approval is also yet to be obtained. In this connection, Monnet has commented to me that he may wish to reopen certain points in light of Eden’s statement to London conference and developments affecting Brussels treaty organization.3
4.
Above information should not be discussed with UK or CSC Government representatives. Substance of understanding reached with UK during informal Paris talks is not expected to be communicated to CSC member governments before a number of days and not before formal High Authority approval.
Tomlinson
  1. Repeated to London, Rome, Brussels, The Hague, Bonn, and Luxembourg for Bruce.
  2. Not printed; it reported that the High Authority had informed the member governments of the Coal and Steel Community by letter that informal talks of a purely preliminary nature were being held with British officials for the purpose of exploring possible bases for agreement on British association with the Community. (850.33/9–2854)
  3. This is a reference to Eden’s Sept. 29 statement during the Fourth Plenary Meeting of the Nine-Power Conference in London; for the text of Eden’s statement, see Department of State Bulletin, Oct. 11, 1954, pp. 525–526. For text of a telegraphic summary of the Fourth Plenary Meeting on Sept. 29, see vol. v, Part 2, p. 1311.