79. Telegram From the United States Delegation at the NATO Heads of Government Meeting to the Department of State1

Polto 1804. 1. This message reports last item discussed at 9:30 a.m. session of NATO Foreign and Defense Ministers December 182

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2. After defense items dealt with (report separate message3), meeting considered draft economic section of communiqué (RDC/57/458) prepared by U.S. Delegation4 on basis text contained Topol 1798.5

3. Turkey (Sarper) noted references to “other countries” and “less-developed areas”, and inquired whether these references were to areas outside NATO.

14. Portugal (Cunha) thought that reference to lending “every encouragement” to development European economic community and European free trade area was too broad a formula, seemed to pass judgement of FTA, which presently under discussion in OEEC.

5. Italy (Cattani) said extremely interested in FTA and saw no reason not to mention it in communiqué. Thought economic cooperation between NATO countries and other areas should be stressed.

6. Greece (Averoff) thought paragraph on EEC and FTA seemed lay too much stress on raising already high economic level Western European countries and not enough on furthering growth in other parts NATO area.

7. Canada (Smith) said he wished submit redraft of same paragraph.

8. Secretary said that while US not wedded to particular language, we felt important at this time to emphasize two things. First, economic cooperation is desirable in order increase our own well-being and strength. Second, we wished make clear our concern over situation in less-developed countries, where Cold War being waged. Extremely important keep up our military strength in order not be coerced by Soviets. But there is real danger from Soviet and Chinese Communist penetration in less-developed areas, where hopes and aspirations are high. These countries already exerting themselves meet this challenge. US believes there is scope for greater cooperation and coordination of efforts of NATO countries, point already emphasized by Italian Delegation. Added that references to other countries should be qualified by words “free world”. With respect EEC and FTA, these are important developments. Perhaps point made by some countries could be handled by making clear in paragraph in question that EEC and FTA not designed operate behind high protective barriers, and thus dislocate trade with other free countries. It is expected barriers will be lowered, and that trade and purchasing power will increase.

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9. Denmark (Krag) supported Canada and said all trade barriers should be reduced, not just in Western Europe but throughout Atlantic community.

10. France (Pineau) remarked on absence in draft of any mention of machinery to resist Soviet economic penetration.

11. Secretary said paper under discussion had not attempted deal with special situations, such as that referred to by Pineau. Such matters difficult and delicate. For example, if talked about publicly, certain countries with surpluses might attempt take advantage of US. Mentioned helpful work already done in NATO (such as Lebanese apples). US considering this entire problem but no conclusion reached. Secretary felt this subject best not mentioned in communiqué.

12. Greece reverted to need for mentioning development less-developed areas within NATO.

13. Italy made point that they assumed reference to NAC reviewing economic trends and assessing economic progress meant this would be done through existing NATO bodies, such as NAC and ECONAD.

14. Canada suggested reference to Article 2 of treaty.

15. Secretary inquired whether SecGen wished US prepare new draft for afternoon meeting. Spaak asked US to do so.

  1. Source: Department of State, Central Files, 396.1–PA/12–1857. Secret. Drafted by Timmons and authorized by Reinhardt. Repeated to the other NATO capitals and Moscow.
  2. The summary, C–R(56)75, and verbatim, C–VR(57)85, records of this session, both dated December 18, are ibid., Conference Files: Lot 63 D 123, CF 952. The summary record details both morning and afternoon meetings.
  3. Polto 1807, infra.
  4. A copy of RDC/57/458 (Final), Annex A/2, an undated working paper submitted by the U.S. Delegation to the NAC entitled, “Economic Co-operation in NATO” is in Department of State, Conference Files: Lot 63 D 123, CF 937.
  5. Dated December 2, not printed. (Ibid., Central Files, 840.00/12–257)