840.50 Recovery/3–448
Memorandum by Mr. William T. Phillips of the International Resources Division1 to the Deputy to the Assistant Secretary of State for Economic Affairs (Nitze)
We have been discussing among ourselves the matters which the CEEC should begin to grapple with. The present trend appears to be that at the forthcoming CEEC meeting organizational matters and reports on customs unions, clearing devices and the like will comprise the agenda. This is very disturbing. The March meeting will, in our opinion, set the pattern for the full term of the ERP. Unless the participating countries are pressed toward much greater cooperation than these things imply we are fearful that the continuing organization will never amount to more than a review and discussion group.
In our opinion the CEEC should begin and continue as an organization of the participating countries in which each country will have to justify its requirements, demonstrate its ability or lack of ability to meet mutually agreed upon production goals, and agree upon realistic import requirements screened in the light of availabilities. If these things are not done the whole program may degenerate into a series of bilateral deals between the U.S. and the individual countries and that lip-service will be paid to true economic cooperation by continuous discussions of customs unions and the like.
If the programming of requirements and production is considered as inappropriate or premature for the early part of the CEEC meeting, it could be carried on during the latter part of the meeting or perhaps simultaneously as a side issue. At any rate the representatives to the CEEC meeting should come prepared to undertake it.
To avoid the appearance of jumping the gun on Congress it should be desirable to consult with Senator Vandenberg to get his reaction [Page 388] to beginning operations in a preliminary way at the CEEC meeting. (Perhaps also Taber and Bridges.)2
If the decision is to make the CEEC a real cooperative organization in the ways suggested above it is our opinion that you or Mr. Clayton or perhaps Mr. Bonesteel3 should attend the meeting, fully documented with all of our materials, so that a strong direction can be given to the CEEC before it has crystallized into undesirable channels.
- This memorandum was also prepared by William Bray of the International Resources Division and by Robert W. Tufts of the Division of Commercial Policy; these men were then also serving on the European Recovery Program Committee in the Office of the Under Secretary.↩
- Congressman John Taber of New York, Chairman of the House Appropriations Committee, and Senator Styles Bridges of New Hampshire, Chairman of the Senate Appropriations Committee.↩
- Lt. Col. Charles H. Bonesteel III, Special Assistant to the Under Secretary of State, and the coordinator of the Department’s ERP activities.↩