116. Editorial Note

On November 20, “Outer Seven” representatives in Stockholm initialed a convention establishing the European Free Trade Association and creating a free market among its members. The Outer Seven also adopted a special resolution reaffirming its desire for closer economic cooperation with the Organization for European Economic Cooperation, including the six members of the European Economic Community. For texts of the communiqué announcing the Outer Seven’s actions and the special resolution, see American Foreign Policy: Current Documents, 1959, pages 570–572. The text of the convention is ibid., 1960, pages 335–351.

Four days later, the Council of Ministers of the European Economic Community decided “to pursue the progressive elimination of quota restrictions vis-à-vis nonmember countries,” to permit member states to extend tariff reductions to GATT members and most-favored [Page 243] nations, and to form a Liaison Committee with other European states or groups. The text of this November 24 decision is ibid., 1959, pages 572–574.

On November 24, the White House reported to President Eisenhower:

“Our Ambassador will try to persuade the British to hold an OEEC Ministerial meeting December 11–12, despite British concern that France would be represented by Pinay rather than Couve de Murville. (A suggested January date would be difficult for us.) [Under] Secretary Dillon would attend a December meeting which could be used for a preliminary exposition of the European free-trade area, for discussions aimed at better coordination of aid to underdeveloped countries and further removal of trade discrimination, and perhaps to increase pressure on Common Market countries to set the lowest possible external tariffs and to pursue liberal policies. We would not expect any OEEC conclusions now on the Community of Six and the Outer Seven. Failing a Ministerial meeting, at which we could show continuing high-level interest in OEEC, we would want Mr. Dillon to visit London, Brussels and Paris to discuss our trade policy and urge Common Market countries to adopt liberal policies.” (Staff Notes No. 681, November 24; Eisenhower Library, Whitman File, Eisenhower Diaries)

The Department of State announced on November 25 that Dillon would visit Europe December 7–14 for informal discussions with officials of the United Kingdom, France, Belgium, and perhaps other countries, on a number of economic subjects, including the new European Free Trade Association, assistance to the less developed areas, and discriminatory restrictions against dollar exports. (American Foreign Policy: Current Documents, 1959, pages 574–575) Documentation on Dillon’s trip is scheduled for publication in volume VII, Part 1. Additional documentation is in Washington National Records Center, RG 59, Conference Files: FRC 83–0068, CF 1546–1548.

Dillon returned to the United States on December 14. On December 16, he reported to the National Security Council on his trip. The memorandum of this discussion is scheduled for publication in volume VII, Part 1.