317. Memorandum of Conversation1
SUBJECT
- US Relations with France and Europe; French Internal Problems
PARTICIPANTS
- Pierre Malve, Leader Grantee, Deputy Chief of Cabinet to EC Commissioner Deniau
- Under Secretary Rostow
- Sam L. G. Maggio, Interpreter
- Stephen H. Rogers, EUR/RPE
Mr. Malvé noted that he had recently accompanied Commissioner Deniau on his campaign for election as a Gaullist Deputy and is now about to tour the United States. He was hoping to be able to reach some kind of a “synthesis” from these experiences. He referred to the great value, in his view, of the partnership concept and asked Mr. Rostow to comment on relations between the United States and Europe.
Beginning his response with economic problems, Mr. Rostow said that partnership is a reality. We have discovered in the Kennedy Round, the balance of payments adjustment process and other areas that problem solutions require cooperation between the United States and Europe. The discussions since January 1 on the US balance of payments situation have gone very well, with Europe’s agreeing to expansion, maintenance of relatively low interest rates, and the acceleration/deceleration proposal, which Mr. Rostow called a major act of solidarity. European capital exports have been greater than anyone expected.
Mr. Rostow went on to say that very important things were developing in the scientific field, where the United States is now studying means of cooperating with Europe to maintain the momentum of intergovernmental efforts. He referred to the space mission about to visit Washington, and to the United States proposals on INTELSAT.
In summary, Mr. Rostow said it is basic US foreign policy to work with Europe within the concept of partnership.
Mr. Malve asked for US views about France and NATO. Mr. Rostow said we were saddened by French withdrawal and missed the French contribution there, but France itself must judge whether withdrawal was an error.
In response to another question, Mr. Rostow said France should not devalue. He added that the international monetary system cannot take many more shocks. He said the United States understands the French need to act because of the great impact of the July 1 tariff reductions, and we understand that what France had done were minimal steps. We want to minimize the repercussions, he added.
Concerning countervailing duties, Mr. Rostow said that we have explained to France officially that the U.S. law allows no latitude.
Mr. Malve said he was pleased to hear that the United States appreciates the importance of France’s accepting the July 1 reductions, which was a great effort on France’s part. Mr. Rostow noted that not undertaking the reductions could have been very serious.
Mr. Rostow said that the US public’s attitude towards France has been hurt by the French action in getting American troops out of France, by rumors about French attacks on the dollar, by the French position on the Middle East and by statements concerning Viet-Nam. deGaulle is so conspicuous, he added, that people tend to identify him with Europe. Mr. Malve said he regretted the French attitude on Viet-Nam, which he [Page 727] did not think was appropriate, particularly in view of France’s experience there. Mr. Rostow emphasized the basic underlying friendship between the United States and France with the observation that American flags had been seen at the pro-Gaullist demonstrations on the Champs Elysee in May.
Mr. Rostow asked for Mr. Malve’s judgment on participation. Mr. Malve answered in terms of students, industry and agriculture. Because the number of college-level students in France has trebled in the last eight years, he said, graduates are no longer certain of having jobs. This has profoundly affected their view of society. Labor/management relations are changing, but have not yet reached a satisfactory state. Agriculture is disaffected by repeated statements that there are too many farmers, that they are inefficient, etc., and by the fact that they are subject to the decisions of “technocrats” in Brussels. There is no dialogue between professors and students in France, Mr. Malve said, and too little of the human element in French education, which is far too centralized. He referred further to the politicization of French society and the shock felt in face of the magnitude of problems of the modern world. On the other hand, the French have an obsessive fear of disorder.
[Here follow 4 paragraphs on the elections in France.]
- Source: Department of State, Central Files, POL EUR-US. Confidential. Drafted by Rogers and approved in M on July 23.↩