MSA telegram files, FRC Acc. No. 54 A 298, “Paris Repto”: Telegram
No. 43
The Deputy United States Special
Representative in Europe (Anderson) to the Mutual
Security Agency1
confidential
Paris, June 9, 1952—9
p.m.
Repto 2404. For Kenney, pass Harriman, Perkins, and Draper from Porter.
Fol are some general observations on OEEC ministerial mtg last Fri and Sat:2
- 1.
- First reaction of European reps with whom we have talked since mtg is one of somewhat surprised relief that EPU problem resolved without several weeks of open crisis, which wld have had disturbing effect on European opinion. Desire of ministers to maintain record of reaching agreement on problems which on eve of mtg had seemed insoluble, beginning with Lisbon and continuing through accords on EDC and German contractuals, probably was effective in moderating earlier positions of Belgs and others. General feeling is that OEEC is now stronger than ever.
- 2.
- Election of Eden as chairman (with Butler expected to be frequent alternate) has added to prestige of organization and given further reason to believe Brit are pursuing policy of closer collaboration with continent.
- 3.
- At Sat session EPU difficulty was used as occasion for discussion of wider issue economic relations between dollar area and Europe. Aiken, Irish FonMin, suggested EPU be transformed into Atlantic Payments Union. Butler and Van Zeeland gently brushed this aside but stressed need for OEEC in next few months to reach judgment on desirable long-term relationship with US. Butler thought any OEEC observations inappropriate during period of American elections, but that interim suitable time for study and hard thinking. Reexamination of relations with US, he suggested, wld lead to conclusion that way to bridge dollar gap was through trade rather than aid.
- 4.
- In response, Draper cordially acknowledged useful suggestions of previous speakers and said that solution wld require major adjustments on both sides of Atlantic. On US side, he felt there was growing recognition that measures are needed to stimulate US investment in Europe and to further open US markets to European goods. OEEC, however, shld not lose sight of major adjustments also required in Europe. Prospects for greater European exports not likely to be realized in large degree until European goods made more competitive in US and other markets. For this reason, among others, we attach great importance to raising levels of productivity and to development of European single market which wld be major incentive to higher productivity. He also noted that more needed to be done to dispense with unnecessary dependence on US, e.g., coal.
- 5.
- OEEC mtg has recd major and favorable play in European press. “Remarkable illustration of European solidarity” is typical of comment found in many papers.
Anderson