840.00R/7–2250: Telegram
The Acting United States Special Representative in Europe (Bonsal) to the Secretary of State
Repto 4076. 1. During luncheon with Deputy Secretary General, Lintott, and Director of Trade and Finance, OEEC, Figgures, at which Tasca1 and I were present, discussion took place with respect to impact Korean developments and US rearmament on future of OEEC. Deputy Sec Gen observed that high priority which wld now be given to rearmament in Western Europe raised serious questions with respect to relationship between NATO and OEEC on economic and financial questions of common interest as well as future program of OEEC. In his view, it wld be exceedingly difficult to separate economic aspects of new defense programs to be adopted by Western European countries from ERP objectives, which until now have had priority in policies of various OEEC member governments.
2. Lintott expressed grave doubts as to role which OEEC cld play in future if responsibility for economic aspects of combined Western European defense programs were to be centered in NATO in London.2 Three possibilities were mentioned, namely, that (1) most of the economic work which OEEC was now doing should be transferred to London; (2) important economic aspects of defense would be shifted to OEEC, for which it was admirably equipped to deal on basis experience, data and personnel; (3) some ad hoc arrangement which wld leave both organizations to function side by side might be set up. In his view, second solution was by far preferable in view especially of fact that US and Canada now both associated with OEEC. In any event, future of OEEC wld be largely determined by decisions made in this connection.
3. Lintott and Figgures discussed obvious potential impact defense effort on OEEC activities including EPU, trade liberalization and economic integration in general. They also referred to relationship between defense potential of different countries and their participation in various economic programs.
4. It is clear reappraisal in terms newly developing international situation will be required with respect to future role of OEEC in Western Europe, as well as relationship of US objective of economic integration in Western Europe to greatly accelerated defense programs. [Page 665] US Deputy to forthcoming NATC meeting3 in London no doubt has foregoing considerations in mind. We assume also that they were discussed with Marjolin in Washington and that we will be informed of these discussions. Reasonably prompt handling this problem desirable in view of possibility demoralization which may be setting in with respect to OEEC and possible loss of highly competent personnel in Secretariat and leading natl delegations. In this connection, Lintott noted transfer Alphand from Post Director of Economic Financial Affairs in French Foreign Office to French Deputy on NATC in London, as well as report that in case unnamed member delegation top three members had been sounded out on possibility of transfer to London.
Sent Dept Repto 4076 rptd info London Repto 565 for Spofford.4
- Henry J. Tasca, Special Assistant (staff planning), OSR.↩
- For further documentation on Western European discussion of possibilities of reorganizing NATO or extending its powers to provide it with increased responsibility for economic planning, see pp. 1 ff. and pp. 828 ff.↩
- Reference here is to the Council Deputies’ meeting scheduled for July 25. The next North Atlantic Council meeting was scheduled for September in New York.↩
- Charles M. Spofford, U.S. Deputy Representative to the North Atlantic Council. Spofford had recently taken up residence in London where the newly created NATO Council Deputies were scheduled to convene under his chairmanship on July 25.↩