740.5/10–1950: Telegram
The Secretary of State to the United States Deputy Representative on the North Atlantic Council (Spofford), at London1
priority
Todep 65. Re Todep 66 Oct 19.2 Fol is text proposal on raw materials handed by Petsche to Acheson Oct 18.
“Article 1. In accordance with the principle of economic cooperation with which they intend to comply, the high contracting parties agree to entrust the Executive established by themselves with the following responsibility:
- a)
- to keep under constant review the evolution of supplies and price of raw materials and essential commodities;
- b)
- to recommend consultations between the main producing and consuming countries as soon as the market situation of a raw material or of an essential commodity seems to justify the use of such a procedure, provided it is up to a Government or to a group of Governments to call any international meeting.
- c)
- To prepare such international meetings and to recommend steps which might be proposed by the countries concerned.
- d)
- Should such meetings not arrive at satisfactory conclusions, to recommend joint measures which might be taken by member countries of the Atlantic Pact.
Article 2. The recommendation made by the Executive may concern:
- a)
- the stimulation of production of commodities in short supply in the participating countries;
- b)
- the periodical international distribution of commodities through allocations;
- c)
- the coordination of the purchasing policies of the importing countries and, as the case may be, the organisation of joint purchases, whether the purchases apply to a certain tonnage of existing commodities or whether they should be achieved over a certain period of time through the conclusion of short or long term contracts.
- d)
- the reduction or, if necessary, the suppression of the consumption of certain products.”
In discussing raw materials situation, Petsche indicated gen agreement with US view that first approach shld be on a commodity by commodity basis, using existing internatl orgs to extent possible and ad hoc groups of principal producers and suppliers where existing org not competent. However, he emphasized fact that if it were not possible to arrive at satisfactory solution on basis of cooperation with producers, NAT countries cld not afford to let unsatisfactory situations prevail. In event of failure to reach agreement in ad hoc commodity conference, Petsche suggested NATO shld determine what further action shld be taken. Fact that NATO countries were in most cases the largest purchasers gave them position of strength. Secy agreed that question of action to be taken if cooperative arrangements failed required further study but added that we had not found answer to that problem.
We will send detailed comments latest Fr proposal soon as possible.