73. Telegram From the Department of State to the Mission to the European Communities0

Busec 377. From Under Secretary. Hallstein saw President with only Under Secretary accompanying.1 Ball and Hallstein both agreed most useful, candid and cordial discussion.

Principal preoccupation of meeting was trade negotiations and prospects for effective EEC participation. President impressed upon Hallstein that we looked to him to see that negotiations succeed. Hallstein expressed impatience with Italian deferral of action on African Association saying that inevitably they will fall in line. Added caustic observation on their general ineffectiveness and speculated that after elections Italians will fall in line with the French.

Hallstein preoccupied with misfortunes of timing. In particular fact that trade negotiations cannot take place in 1966 when Community operating on less than unanimity role.

Hallstein concerned about one aspect Franco-German Treaty, namely provision for consultation regarding Community affairs. Is concerned that France has in mind developing extra-Community procedure whereby Franco-German action could negate work of Community and particularly such a bilateral arrangement could make the 1966 procedures ineffective. Hallstein felt essential that Bundestag resolution deal with this problem. At same time he expressed confidence that Germans would not be trapped by French attempts to exploit Franco-German Treaty in this way. He remains convinced that French will not take action to prevent 1966 procedures to come into play.

President and Ball stressed once again high importance to U.S. of agriculture issue in both economic and political terms and specific problem poultry imports into Community.

Comment:

While atmosphere Hallstein’s visit cordial and he displayed usual optimism, I believe he went away convinced of the importance President attaches to trade negotiations. You should make use of Hallstein’s conversations here to bear down heavily on the role that Commission [Page 190] and particularly Hallstein must play. In this connection we suggested to Hallstein the fact that Five should strive to work out an arrangement whereby they would strive for a “deal” with France whereby concessions of Five to French with regard to African Association, Algeria, agriculture and the financial regulation be made in return for French commitment in specific terms with regard to trade negotiations.

Rusk
  1. Source: Department of State, Central Files, ECIN 7 EEC. Confidential. Drafted by Schaetzel, cleared with the White House, and approved by Ball. Repeated to Bonn, The Hague, London, Luxembourg, Paris, and Rome.
  2. The meeting with the President took place from 10:03 to 11 a.m. on March 4 (Kennedy Library, President’s Appointment Book), but no other record of it has been found.