840.50/8–2344
The Department of State to the British Embassy
Aide-Mémoire
Reference is made to the memorandum of the British Embassy dated August 17 and the aide-mémoire presented by Sir Ronald Campbell at a meeting with officers of the Department on August 23 relating to the possible establishment of a European Economic Committee. In the opinion of the Department, these suggestions require further consideration and clarification between the two Governments. To this end, the Department submits the following preliminary comments on the British proposals.
This Government is in accord with the statement of the British Government that the chief effort for the present should be concentrated on encouraging the liberated nations of Europe to help themselves in meeting each other’s requirements for civilian consumption and for reconstruction to the largest extent possible. It agrees further that this important purpose may be facilitated by the provision of some sort of forum or clearing house for discussion among the European states of questions which must be settled in order to ensure the maximum effective interchange among them of food, raw materials, and capital goods in the early post-military period. It is not considered, however, that such an organization should perform administrative [Page 623] functions as distinguished from those of a recommendatory character.
It is the Department’s view that it will be most profitable to concentrate at this time on the consideration of the utility of such a clearing house during the period of tight supply situations—whether occasioned by material shortages or transport difficulties. It is suggested that a European Economic Committee might during such period be of service in providing for discussion and recommendation to the several interested Governments regarding the following matters:
- 1.
- The revival of European trade; its reorientation from the pattern set under German control; the removal as rapidly as supply conditions permit of wartime controls and regulations and the taking of steps in the direction of multilateral non-discriminatory trade; and the adoption progressively in the transition period and thereafter of the policies with respect to the foreign exchange and their regulation and control which were laid down at Bretton Woods.14
- 2.
- The most effective methods of procuring those supplies in Europe which are needed by the Allies in the war against Japan.
- 3.
- The most effective distribution within the European continent of materials in tight supply so as to reduce demands for those items out of overseas supplies.
- 4.
- Reconversion, reconstruction and general economic development policies and programs with special reference to harmonizing from the point of view of time the several programs of the individual nations of the area in order to make possible their execution within the potentialities of supply.
- 5.
- Possibly, considerations relating to the financial resources and balance of payments situations of the several nations involved.
In these suggestions, this Government shares the view advanced by the British Government that such a Committee should be concerned primarily with policies of the European nations and methods of collaboration among them relating to the revival of trade within Europe and the reconstruction of such nations rather than with the actual procurement or movement of supplies or with the detailed approval of specific import programs of individual nations. It does not appear feasible at this time further to specify the exact nature of the questions with which such a Committee might deal.
If further discussion between our two Governments should result in agreement to suggest the establishment of such a body, the Department would recommend that its organization be of the simplest, most informal kind with a maximum of flexibility to adapt itself to varying problems and changing circumstances. This Government would also suggest that principal members of the Committee should be the representatives of the Allied Nations of the Continent, with adequate provision for close collaboration with the German and Italian Control [Page 624] Commissions and with representation of UNRRA and of the proposed European Inland Transport Organization.16 The representatives of the United States, United Kingdom and the U.S.S.R. would be full members but in a broad advisory capacity.
For certain purposes it might be desirable and necessary to obtain at least limited participation by European neutral nations. The Department’s views on the policies with respect to neutrals will be expressed in a separate memorandum in reply to the memorandum of the British Embassy of August 24, 1944.17
The Committee should draw upon the best specialized economic and technical personnel of the several member countries for particular problems. It would appear desirable to set up simultaneously with the establishment of the main body subcommittees to deal with the urgent problems of coal and electric power which are currently under discussion in London and Washington.
Since the Committee would consist primarily of representatives of continental states and since its purpose would be basically to assist the liberated countries to help themselves, this Government takes the view that it would probably be best for the headquarters of the Committee to be moved to the continent as soon as practicable.
It is suggested that in accordance with the second British Aide-Mémoire further discussions take place at once between British, American and Soviet representatives on the basis of this and the British documents referred to above, with a view to the preparation of a definitive memorandum to serve as a basis for speedy consultation with the interested Governments. A copy of this Aide-Mémoire is therefore being transmitted to the Soviet Government. The British Government will no doubt wish to take corresponding action.
The British Government has suggested that as preliminary to the organization of the proposed Committee, there be organized Netherlands and Norwegian Tripartite Committees similar to those now existing for France and Belgium. This Government believes that this step is unnecessary since presumably once the European Economic Committee is established the present Tripartite groups would disband.