840.50 Recovery/11–1649: Telegram
The Secretary of State to the Embassy in the United Kingdom
priority
4139. For Ambassador. Following is proposed draft of message to OEEC countries on subject of strengthening OEEC through appointment of outstanding European personality to full-time position as suggested by Bevin (see Frankfort’s 3923 to Dept, rptd London 254).1 Please show draft to Bevin2 pointing out that Secretary has reviewed this problem as a matter of urgency upon his return to Wash and that he proposes to proceed promptly with the dispatch of this message to the OEEC countries through diplomatic channels after receiving Mr. Bevin’s comments. ECA concurs.
“In the Convention for European Economic Cooperation, the governments of the participating countries determined to combine their economic strength to achieve the ends set forth in the general report of the Committee of European Economic Cooperation, and to join together [Page 449] to make the fullest collective use of their individual capacities and potentialities. They pledged themselves to develop, in mutual cooperation, the maximum possible interchange of goods and services; to cooperate with one another in reducing tariff and other barriers to expansion of trade; to carry forward their efforts to achieve as soon as possible a multilateral system of payments among themselves; and to cooperate in the progressive reduction of obstacles to free movement of persons. They explicitly took account of the necessity that they should, collectively and individually, correct or avoid excessive disequilibrium in their financial and economic relations. They resolved to create the conditions and establish the institutions necessary for the success of European economic cooperation and for the effective use of American aid, and accordingly they set up Organization for European Economic Cooperation.
Upon its establishment the OEEC assembled a devoted and capable staff, and, in the 18 months which have ensued, the OEEC has assumed and successfully discharged the task of recommending an appropriate division of ECA dollar aid for fiscal years 1948–1949 and 1949–1950; it has elaborated and supervised a scheme of intra-European payments and is developing a program for trade liberalization; it has completed many difficult technical assignments; and it has reported to member governments a searching analysis of the problems which must be surmounted to achieve European economic recovery. In a larger sense, however, the OEEC has been unable to give effect to its high purposes and possibilities. It has not yet become an effective instrument to combine the economic strength of the participating countries toward agreed ends and to make the fullest collective use of their individual capacities and potentialities.
In part, this inadequacy reflects the inherent and many-sided difficulties of the undertaking. In significant part, however, it has been caused by the failure of the organization to embody in its structure all available means through which it could be given sustained political leadership.
With this in mind, and as a means to invigorate the organization and assist in realizing its full potential, the US Govt suggests that the Council of Ministers of the OEEC appoint, with international status, an outstanding European public personality on a full-time basis, to discharge the responsibilities outlined below.
No change in the Convention for European Economic Cooperation seems required. Such a personality might be appointed Special Representative of the Council, Executive Vice-President of the Council or to some other similar position. He would receive his mission from the Council and it is clearly the responsibility of the Council to determine what this mission would be. In broad terms, however, it might be formulated as follows:
In intervals between meetings of the Council of Ministers and of the Consultative Group, and in accordance with the terms of the Convention and decisions of the Council, to sharpen the issues before the organization and facilitate agreement upon them among the governments; to work with the Ministers of the participating countries and officials of the US Govt in coordinating activities and developing and carrying out policies and measures [Page 450] to accomplish the agreed ends; and to assist in presenting the purposes and objectives of the organization to the public.
He should attend meetings of the Council of Ministers and of the Consultative Group, with the right to participate in discussions. His appointment would not, of course, diminish the responsibilities of OEEC bodies and, in particular, should strengthen and make more effective the position of the Secretary General. The Secretary General should make available to him such services and facilities of organization as may be required.
The taking of this step toward strengthening the OEEC would give grounds for new confidence that the organization will be able to achieve the high objectives set forth in the Convention.”
Sent to London as 4139, rptd to Paris personal for Harriman as 4441.3
- Supra.↩
- Douglas enclosed a copy of this draft in his letter to Bevin dated November 17, not printed, and wrote in the lower margin of his letter: “I do hope you can support this proposition.”↩
- Harriman, in his reply, telegram RepSec 46, November 22, from Paris, stated that if Bevin withheld his support of this proposed message to the OEEC countries, the matter would be serious and the United States should review the situation before taking any further action (840.50 Recovery/11–2249).↩