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

MSA telegram files, FRC Acc. No. 54 A 298, “Paris Torep”: Telegram

No. 241
The Deputy Director of the Mutual Security Agency (Kenney) to the Office of the United States Special Representative in Europe, at Paris¹

confidential

Washington, March 18, 1952—9: 29 p.m.

Torep 1741. Subject—U.S. Statement on Establishment of a Single European Market for Agri Products. Reference—Repto 1134;² Hague Tomus 130;³ Hague Embtel 946;⁴ Paris Embtel 5522;⁵ Hague Embtel 967.⁶

This is a joint State, USDA, MSA cable. Following is agreed U.S. public statement revised in light reftels for MSA/E use as discussed Deptel March 18:

1. “The United States has supported international cooperation for the improvement of production and marketing, the reduction of trade barriers, and the expansion of trade on an economic basis. Our nation strongly supports European efforts towards political and economic unification and has encouraged such arrangements as the European Payments Union, the European Defense Community and the Schuman Plan.

2. The United States recognizes the need for a broader integration of the European market to include agricultural and other commodities. It is the view of our Government that European agricultural integration is a desirable and logical phase of general European unification.

3. The United States Government welcomes any discussion or developments leading to the creation of a single European market for agricultural products which would:

a. Embody specific measures for expanding trade through the progressive elimination of trade barriers in Europe and aim at lowering of barriers to trade with the rest of the world.

b. Encourage increased efficiency in agricultural production and the expansion of agricultural output towards optimum levels which will strengthen the European economy and the common defense effort.

c. Contribute to increased efficiency in the marketing and distribution of agricultural products in order to benefit both consumers and producers.

d. Contribute in this way to maintaining and improving European living standards.

4. Achievement of these objectives will require that nations be willing, as in the Schuman Plan, to modify policies which prevent shifts in the use of their resources in accordance with the economic requirements of a competitive market.

5. Within the OEEC area, the application of modern farming techniques has made great progress. The increase of productivity continues to be a fundamental condition for the expansion of European agriculture. Access to a broader market would give farmers added confidence to make the investments necessary to modernize their operations and produce at full capacity. European agricultural integration can also help the economy as a whole by exerting a strong and continuous influence toward the most effective use of manpower and scarce materials and by guiding the limited resources available for investment in agriculture into the most productive channels.

6. While existing proposals for agricultural integration appear in certain respects to fall short of these objectives, the United States is confident that Western Europe once again will call upon the practical wisdom and foresight reflected in the Schuman Plan and the European Defense Community and will develop a plan for agriculture which will genuinely contribute to the strength and prosperity of Western Europe.”

FYI MSA advising four U.S. farm organizations contents above draft and plans for its use. This to avoid their being “caught short” any news from Paris.

Kenney

1. Cleared in draft with the Departments of State and Agriculture and repeated to The Hague. The public statement contained in this telegram was sent to all MSA Missions by the Office of the United States Special Representative in Europe in telegram Repto circular 33 from Paris, Mar. 21, with the notation that it would be released for publication on Monday, Mar. 23. (MSA telegram files, FRC Acc. No. 54 A 298, “Paris Circular Repto”)
2. Not printed; it concurred with the text of an earlier draft of the proposed U.S. public statement while, at the same time, offering some revisions which MSA felt would result in a better European reception. (MSA telegram files, FRC Acc. No. 54 A 298, “Paris Repto”)
3. Not printed.
4. Supra.
5. Not printed; it recommended that the proposed U.S. public statement not be issued because it would reinforce the impression, which the French Communist press was encouraging, that the agricultural pool was an American idea and because the United States should not appear committed to accept any agricultural integration scheme that might result in the Green Pool negotiations. (751.5 MSP/3–1252)
6. Not printed; it stated that U.S. failure to issue a favorable statement regarding the Green Pool negotiations would be regarded as a reversal of U.S. views. (840.20/3–1452)