840.00/10–2249: Telegram
The Ambassador in France (Bruce) to the Secretary of State
4422. For Secretary, Webb and Hoffman from Perkins. I have found complete unanimity of opinion of all conferees here1 (Bruce, Douglas, [Page 343] Dunn, Harriman, Kirk, McCloy) that without the active participation of the UK, western European integration will have little if any value. In addition to the general economic advantages to western Europe which could result from integration, the problem of German integration into western Europe is particularly acute in the light of the strong threat of increased Soviet pressures on Germany through formation of eastern government and other measures. It was the conclusion that no effective integration of Europe would be possible without UK participation because of the belief (not without reason) held by western continental powers of potential German domination if such UK participation did not take place. It is not realistic to expect that France will take the leadership in bringing about western European integration without UK participation. This view negatives the implied suggestion contained in Deptel 4013, October 192 that French leadership might alone be sufficient to produce effective integration.
I will give you later the details of the discussions which were of an extremely high order and most helpful, but can now only emphasize the unanimity and strength of the conclusion reached that UK participation is essential if European integration is to have any chance of success.
There was also a strong and unanimous opinion that the British are holding back, especially on many vital economic aspects of their own involvement with western Europe and in some cases are actively endeavoring to restrain the continental powers in even the limited extent to which they are prepared to go.
The question of how far in the direction of economic integration the Europeans are now prepared to move was also carefully examined. It was agreed that we should press for all positive measures which could be taken step by step leading towards European integration even though at the present juncture such steps would not involve all of the members of the OEEC. It was also agreed that it would be unrealistic to attempt some new sweeping plan involving at this time extensive surrender of sovereignty and that it would be wiser and more effective to carry out the step by step measures within the framework of existing organizations such as the OEEC, Council of Europe, Western Union and NAT, keeping constantly alive the larger concept of European integration.
This would include encouragement of close integration such as Benelux and Franco-Italian-Belgian plan, but without abandoning the ultimate aim of a larger unification. The above considerations have led to the conclusion that we have therefore very urgently to re-examine our attitude towards the British, particularly their unwillingness [Page 344] to live up to their ECA commitments to further and not obstruct European cooperation and that we must devise intelligent and effective methods of inducing them to take the following minimum steps necessary for this purpose.
- a.
- Cooperation in strengthening and revitalizing OEEC. The cardinal requirement is the selection of an outstanding European committed to western European unity to provide the essential leadership and direction. At the present time Spaak seems to be the individual who possesses these qualifications and who is immediately available. (Separate telegram follows.)3
- b.
- Vigorous cooperation in taking the necessary steps, including fiscal measures, to avoid inflationary pressures arising from devaluation, specifically by holding as far as practicable intra-European prices at pre-devaluation levels, for instance coal.
- c.
- Action in reducing these intra-European export prices which are now held above internal prices, so as to correct the discriminatory and uncooperative aspects of the dual price system.
- d.
- Action to continue advances in the field of reducing trade restrictions.
- e.
- Work with the continental nations and the United States in pushing—and not obstructing—the various closer economic arrangements between some groups of continental countries which are now developing, as for instance, the French, Italian, Belgian, Netherlands discussions.
- f.
- Cooperation in the development of an effective clearing institution for intra-European payments (preferably through a European brand of the International Monetary Fund).
Sent Department 4422; repeated London 745 for Douglas, Frankfort 101 for McCloy, Rome 157 for Dunn; Department pass Moscow 216 for Kirk. [Perkins.]