840.50 Recovery/10–2649

The Minister in the British Embassy (Hoyer Millar) to the Secretary of State

secret

Dear Mr. Secretary: Just after the Ambassador had left for California yesterday evening we got a telegram from the Foreign Office instructing us to communicate to you a personal message from Mr Bevin on the subject of European economic collaboration.

A series of meetings begins in Paris this week of the Consultative Group of the O.E.E.C., the Ministerial Council of O.E.E.C., the Council of Ministers (European Assembly) and the Consultative Council of the Brussels Treaty. It is likely that at all of these meetings the question of European collaboration will come up in one form or another, and it has, therefore, been thought desirable to consider the attitude which the United Kingdom Government should adopt in such an event.

The line which the Chancellor of the Exchequer and Mr Bevin have decided to recommend for adoption at the forthcoming meetings in Paris, and the reasons for it, are set out in the form of the personal message for yourself from Mr Bevin enclosed herein. We have been asked to explain that it has not yet been possible for Mr Bevin and Sir Stafford Cripps to show this message to the full Cabinet in London, [Page 347] though they hope to do so to-morrow.1 Should any change of substance be made thereafter we will at once inform you.

It is not the intention of the United Kingdom Ministers to make any formal statement of this kind during the meetings in Paris, though their general attitude will be based on the policy set out in the message in considering any proposals which may be put forward.

Yours sincerely,

F. R. Hoyer Millar
[Enclosure]

Personal Message to the Secretary of State From Mr. Bevin Dated 25th October, 1949

In preparation for the forthcoming meeting in Paris of the O.E.E.C. Council of Ministers, the European Assembly and the Consultative Council of the Brussels Treaty, His Majesty’s Government have reviewed their general attitude towards proposals for closer European union or unification which may be put forward.

In the first place, His Majesty’s Government re-affirm the obligations which they have assumed under the Convention for European Economic Co-operation, the Statute of the Council of Europe, the Brussels Treaty and the Bilateral Agreement between the United States and the United Kingdom.

In accordance with these obligations His Majesty’s Government have participated fully in the O.E.E.C. and other European bodies and have taken the lead in the elaboration of the practical steps which have been taken, notably the Intra-European Payments Agreements and measures for liberalisation of trade. They have been prepared to go a long way and indeed to take considerable risks in order to promote these and similar measures of co-operation. Proposals may now be put forward which if they were to be accepted by His Majesty’s Government might involve some degree of merging or integration of the United Kingdom economy with the economies of Western European countries. Although no actual proposals have been formulated, or at least communicated to the United Kingdom, we have considered the general principles involved. We must have regard to the position of the United Kingdom as a power with world wide responsibilities for administration and defence and as the leading member of the British Commonwealth and sterling area as well as to the general responsibilities which we have assumed under the North Atlantic Pact, and the similar obligations under the Brussels Treaty. Finally, we wish to do nothing which is incompatible with the objectives of [Page 348] the communiqué issued after the Anglo-American-Canadian economic talks in Washington in September.2

In summary, the principal objective of our policy is to reconcile our position as a world power, as a member of the British Commonwealth, and as a member of the European community. We believe that we can effect this reconciliation but that if we are to do so, we cannot accept obligations in relation to Western Europe which would prevent or restrict the implementation of our responsibilities elsewhere.

In these circumstances, if proposals are put forward for closer economic groupings in Europe or otherwise for the lowering of tariffs in Europe and for the freeing of exchange and other financial controls and restrictions in Europe we will examine them sympathetically. We are in principle in favour of such groupings if their establishment can be proved to be in the general interest of European recovery. But we naturally expect that these proposals should be clearly formulated and discussed with us so that we can judge how they will affect our interests and can define our attitude towards them. The decision whether we could support them generally must depend on their nature and their possible effect on us and on our wider responsibilities. We have neither the desire nor the intention to impede any sound scheme of closer European union.

We believe that this general attitude coincides with that of the United States Government and we hope that we may look to them for their general support.

  1. The message was approved by the Cabinet on October 27 (840.50 Recovery/10–2849).
  2. For the text of the communiqué, and related documentation, see pp. 833 ff.