840.50/3–445: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

2233. I. The following is the draft text of the proposed recommendations on the establishment of a European Economic Committee:

  • [“]3. In view of the foregoing it is recommended that a consultative and advisory body, to be known as the European Economic Committee, be established as soon as possible to deal with the type of problems described above. The general terms of reference might be:

    “‘To provide a forum for discussion and interchange of information and for the formulation of recommendations with respect to (a) economic questions arising in Europe during the last part of the European war and the transition period immediately following, and (b) such questions of reconstruction policy and longer term development as must necessarily be considered in connection with (a)’

  • “4. In the initial stages the committee should be composed of representatives of the Allied Governments in Europe and the United States Government.65 Neutrals could be brought in as and when the foundation members agreed that it was expedient. The attendance of representatives to speak for, the enemy countries will have to be arranged in different ways according to the extent to which the controlling or occupying powers have assumed responsibility for the various functions of government. The exact manner of their representation will, however, be a matter for decision by the controlling or occupying powers, in consultation with the members of the EEC.
  • “5. It will clearly be necessary for the European Economic Committee to agree at the very outset an effective working relationship [Page 1428] with other parties whose fields of activities have or will have connections with the committee’s sphere—the appropriate military commands, combined boards, UNEEA, United Nations Maritime Authority, European Central Inland Transport Organization, the food and agriculture organization, the Bretton Woods organizations, the reparation and restitution commissions, and the control machinery in occupied enemy countries.
  • “6. The European Economic Committee should be established as soon as possible with the terms of reference set forth in paragraph X above, and should proceed at once to take appropriate steps, including the establishment of suitable reactions with the bodies mentioned in the preceding paragraph and the creation of any technical or other committees or agencies that may be required to deal with particular goods or problems.”

II. Following is the text of the proposed draft note on a European coal organization:

  • A. Nature of the problem.
    • “(I) Need for coordination of coal supplies for Europe.
    • “The recent acceleration in the progress of the European war has underlined the urgency of the problem of coordinating coal supplies for Europe in the period immediately preceding and following the end of the German war. It is already clear that, owing to manpower and transport difficulties, supplies of coal from non-German sources will, for some time, fall far short of requirements, even if enemy resistance were to be overcome without extensive damage to Allied and enemy coal fields; and that in this transition period, Europe will have to depend to an appreciable extent on German coal. Later, when and if export surpluses become available in the Allied coal producing countries, it is considered that, so long as the total requirements in Europe exceed total supplies, the only means of ensuring a fair and equitable distribution of total export supplies would be to coordinate the allocation of such supplies, together with Germany’s surplus. The measure of this surplus will depend on the requirements of Germany’s national economy as determined by the Allies, and on any reparations, political, and economic agreements.
    • “(II) Equipment for mines.
    • “Supplies of mining machinery and equipment will be required for the mines to reach their maximum production. Many of these requirements are in very short supply and will need expert coordination so as to ensure an equitable and efficient distribution of both indigenous and non-indigenous supplies. It may well be, for instance, that German mines should not have the first choice of machinery and equipment produced by German industry. An important factor in the distribution would be the extent to which output of coal could be increased by the provision of mining machinery and equipment made available for allocation on the lines proposed in the preceding paragraph due regard being paid to local needs and to the transport available at the time.
    • “(III) Mining labor.
    • “The return of displaced miners, and the recruitment of new, presents a serious problem requiring coordination so that the needs of [Page 1429] Europe as a whole may be determined and presented to the appropriate authority.
    • “(IV) Transport.
    • “As the possibility of moving supplies both by land and sea will be entirely dependent upon the availability of transport, it will be necessary to coordinate the demands for the transport of coal and mining machinery, so that these demands can be effectively presented to the authorities responsible for coordinating transport to meet requirements, e.g. the United Maritime Authority and the European Central Inland Transport Organization.
    • “(V) Handling of German coal and mining machinery.
    • “The allocation of German supplies which may be made available outside Germany will need careful and expert handling if a truly equitable distribution is to be ensured and if the legitimate trading interests of the Allies are to be adequately safeguarded.
  • B. Existing machinery.
    • “(I) The combined boards at present only allocate available exportable supplies of coal and planned items of mining machinery emanating from the British Empire and the U.S.A.
    • “(II) During the period of military operations, SHAEF and AFHQ control the import of coal and mining machinery into northwest Europe and the Mediterranean area.
    • “(III) Neither of these arrangements would suffice to deal with the problems outlined above. In any case, the period during which the Allied Commanders in Chief will continue their present limited functions is short.
  • C. Proposed machinery to meet the problem.
    • “(I) With the object of ensuring a fair and equitable allocation of available supplies, it is proposed that a European coal organization should be set up for the effective coordination of European requirements and supplies in relation to the world shortage of coal supplies, mining labor and equipment and transport. In general, the European coal organization should make recommendations to the appropriate governments, international organizations and other bodies concerned. Also, the member governments should empower their representatives to arrange for action to be taken with the appropriate authorities to resolve emergency problems within Europe as they arise.
    • “(II) The organization should be composed, in the first instance, of representative of the United Kingdom, the U.S.A., the USSE, France and the other European Allies. There should, of course, be provision for the establishment of such relationships as may in each case be appropriate with the Allied Control Commissions, combined boards, UNRRA, the proposed European Economic Committee, EITO, UMA, and other bodies which may be established. Provision should also be made for appropriate relationships with representatives of employers and employees, and with consuming interests, including the interests of neutrals.”

The United States member of the drafting committee proposed to substitute the following for C (I) in the above text:

“It is proposed that a European coal organization should be set up for the effective coordination of European requirements and supplies [Page 1430] in relation to the world shortage of coal supplies, mining labor and equipment, and transport, with the object of insuring a fair and equitable distribution of available supplies and in order to resolve emergency problems as they arise.”

Winant
  1. Acceptance by the United States of all European Allies was indicated by the Department in telegram 1773, March 8, 1945, 6 p.m., to London (840.50/3–445).