850.33/6–2450: Telegram

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


3082. Attention Perkins inform Hoffman ECA. This is fourth in series transmitting translated text working paper containing draft of treaty implementing French proposal of May 9. See Embtel 3081.

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

Article 25. The competence of the high authority in the field of prices shall be directed towards the following objectives:

  • To protect the consumer without discrimination;
  • To protect the producers against unfair trade practices;
  • To assure a regular expansion of markets and of production;
  • To bring about progressively conditions which will spontaneously assure the most efficient distribution of production at the highest level of productivity.

The high authority shall have the power to determine the methods of establishing prices; it shall be empowered in particular:

  • To prescribe that enterprises shall quote prices based on the place of production;
  • To prescribe that each enterprise shall make public price lists applicable to all consumers without discrimination;
  • To establish general or regional maximum and minimum prices between which, unless a special exception is made, prices must be included.

If the high authority finds that the normal methods of competition are threatened by discrimination on the part of consumers, in particular [Page 735] in the clauses regulating the contracts placed by organizations under government control, it will make the necessary recommendations to the interested governments.

Article 26. The competence of the high authority in the matter of wages and conditions of work shall be directed towards the pursuit of the following objectives:

  • To avoid using wage reductions as a means of competition or economic adjustment;
  • To eliminate every type of competition based on the exploitation of labor;
  • To assure to the workers of the coal and steel industries the highest standard of living compatible with the economic equilibrium of the interested countries as well as with the expansion of coal and steel production and the protection of the consumers.

The high authority shall gather all information necessary to appraise the possibilities of improving the living conditions of labor as well as the dangers which threaten these conditions.

In case the high authority should recognize that in certain enterprises total direct and indirect expenditures on labor per working hour are abnormally low, it shall address appropriate recommendations to the interested enterprises or governments. It may, if necessary, bring about an equalization of the conditions of competition by levying a special contribution upon the enterprises in question.

In case the high authority should recognize that in certain enterprises a reorganization is necessary in order to prevent a level or an increase in remuneration of the workers being prejudicial to other workers or to the expansion of production, it will address to the interested enterprises or governments recommendations as to such reorganization as may be necessary. It may also on a temporary basis give its approval to the granting of subsidies by the interested governments.

Article 27. The high authority shall, in collaboration with the regional associations provided for in Article 20, develop forecasts designed to give guidance to enterprises in establishing their own production programs. The high authority may in exceptional circumstances give direct instructions to enterprises, so as either to avoid a dislocation of production or to assure the satisfaction of needs which appear larger than the total programs of the various enterprises.

Article 28. In collaboration with the regional associations mentioned in Article 20 or directly with the enterprises, the high authority shall draw up programs for the modernization, specialization, and expansion of productive capacity, designed to provide guidance to enterprises in establishing their own programs.

The high authority may make suggestions regarding the individual programs of enterprises or groups of enterprises and may make these suggestions public.

The governments of the member countries may participate in the financing of the investments included in the programs drawn up by the high authority.

The high authority may facilitate the carrying out of investments using the means provided under Article 23.

[Page 736]

Text to be continued in subsequent telegram.

Sent Department 3082, repeated info London 864 eyes only Douglas, Frankfort 435 eyes only McCloy, Rome 236 eyes only Dunn, Brussels unnumbered eyes only Murphy, The Hague unnumbered eyes only Chapin.