850.33/6–2450: Telegram

The Ambassador in France (Bruce) to the Secretary of State

secret
priority

3081. Attention Perkins, inform Hoffman ECA. This is third in series transmitting translated text working paper containing French draft treaty on Schuman plan. See Embtel 3080.

(This message contains verbatim text.) Begin continuation of text:

Section II

The pooling of coal and steel production.

Article 17. The mission of the high authority shall be to contribute by every means at its disposal to a policy of economic expansion, full employment, and the raising of the standard of living of the workers, and to ward off the dangers which can suddenly threaten the continuation of this policy.

It shall in particular:

  • (a) Assure the supply of coal and steel under identical conditions at the point of production;
  • (b) Make sure that the satisfaction of the domestic needs of the member countries and the development of common exports other countries is accomplished under the best economic conditions, without distinction or exclusion;
  • (c) Promote the modernization of production and the improvement of its quality;
  • (d) Eliminate those artificial elements likely to jeopardize normal competitive conditions;
  • (e) Pursue the equalization in an upward direction of the conditions of life and labor of the workers in the coal and steel industries;
  • (f) Take the necessary transitional measures in carrying out its mission.
  • (g) Institute, in cooperation with the interested governments, enterprises and organizations a system for the exchange of information and for permanent cooperation, which will permit the high authority to execute its mission with limited administrative machinery and with a minimum of intervention.

Noteβ€”in the spirit of the drafters of the present working paper and as is emphasized in paragraph (g), certain of the powers envisaged in the following articles should be considered precautionary; the high authority will direct its activities in such a way as to avoid their employment except in extraordinary circumstances.

Article 18. To make possible the accomplishment of the missions entrusted to the high authority, the member states undertake certain commitments and grant to the high authority certain powers.

Article 19. The states parties to the present treaty commit themselves:

1.
To take all measures necessary to assure the creation of a single market for coal and steel embracing the whole of their [Page 733] territories as well as the pooling of their production; and, specifically, on the request of the high authority, to abolish:

All import or export duties, or equivalent taxes, and all quantitative restrictions on the movement of coal and steel among the states parties to this treaty;

All subsidies or assistance to the industries in question;

All types of differentiation between the national market and external markets in transport rates on coal and steel;

All restrictive practices tending to the division and exploitation of national or external markets.

2.
To carry out the obligations placed upon them by the decisions and recommendations of the high authority, to give close attention to its suggestions, to facilitate in every way the execution of its mission and to take within their respective jurisdiction all general or specific measures necessary or useful to this end and, specifically, to adapt to the requirements of the common market their customs duties on coal and steel with regard to third countries.

Article 20. In order to provide itself with intermediaries for the execution of the missions which are imparted to it, the high authority may accredit regional associations of producers or encourage their creation.

Except for enterprises possessing establishments dispersed over the whole territory of a state, each association must correspond to a geographical zone where the conditions of production are substantially homogeneous, without taking account of existing frontiers in the delimitation of this zone.

The operating expenses of these associations will be covered by dues paid by their members. Each group must submit to the high authority an annual report which will be made public.

Article 21. The high authority may gather, either through the intermediary of the regional associations or directly from individual enterprises, information which may be of use to the accomplishment of its missions. It may make or cause to be made the necessary verifications.

Information concerning individual enterprises will be treated as a professional secret. With this reservation, the high authority shall publish such data of a collective character as will contribute to informed action by the governments and all the interested parties.

Article 22. The operating expenses of the high authority will be covered by dues levied upon the enterprises under its jurisdiction according to uniform rules.

Article 23. In order to facilitate the specialization, modernization, and expansion of productive capacity, the high authority is authorized to make loans to business enterprises. In order to facilitate necessary conversion of certain enterprises or to encourage the development of new activities making it possible to assure to labor a productive employment, the high authority is authorized to make loans and grants.

For this purpose, the high authority may receive funds in any form whatever, may float loans, and, to guarantee the servicing of those loans, may place a levy on deliveries of coal and steel.

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Article 24. In order to attain the objectives which are assigned to it, starting from the disparate conditions under which production now takes place in the various member countries, the high authority should institute a temporary mechanism of perequation making it possible to assure that during the period of transition such shifting of production as may occur will be gradual.

The perequation fund will be supplied by contributions levied upon producers on a uniform basis. The fund will serve to provide temporary assistance to enterprises which require a period of time to adapt to the single market. The amount of such perequation shall be constantly reduced during this transition period.

Text to be continued in subsequent telegram.

Sent Department 3081; repeated info London 863, eyes only Douglas; Frankfort 434, eyes only McCloy; Rome 235, eyes only Dunn; Brussels unnumbered, eyes only Murphy; The Hague unnumbered, eyes only Chapin.

Bruce