850.33/6–2450: Telegram

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


3083. Attention Perkins, inform Hoffman ECA. This is fifth in series transmitting translated text working paper containing draft of treaty implementing French proposal of May 9. See Embtel 3082.

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

Article 29. The high authority will encourage and facilitate technical research in connection with the production and utilization of coal and steel, and will establish appropriate contacts among existing organizations.

It will make all useful suggestions for the dissemination of information concerning technical improvements, specifically with regard to the exchange of patents and the granting of licenses.

Article 30. When the high authority recognizes that certain legal or administrative measures in one of the member states, particularly concerning the basis of assessment and the rate of taxes, the conditions of banking, the financial market, or the rates of transport, or that any other elements of the economic situation which could possibly be corrected through appropriate action are such as to jeopardize conditions of competition in the production of coal or steel, it will make the necessary recommendations to the government concerned.

In case the high authority should deem that these legal or administrative measures or those elements of the economic situation jeopardize competition by providing abnormal facilities for enterprises located within the territory of the state in question, the high authority will have the power to equalize conditions of competition by imposing a levy on the enterprises which benefit from these advantages. This levy may be maintained until such time as the high authority notes that the necessary corrective action has been introduced.

In case the high authority should deem, on the contrary, that such measures or such elements of the economic situation work to the detriment of enterprises located within the territory of the state in question, it may provide or authorize this state to provide temporary assistance to these enterprises; this assistance shall be limited to a period announced at the time it goes into effect. During this period the government concerned must take the corrective action which the circumstances require.

Article 31. In case of dumping by an enterprise situated outside its jurisdiction or in case of other practices condemned by the Habana [Page 737] Charter1 which might endanger the accomplishment of its mission, the high authority shall be empowered to take all useful measures compatible with its general purposes, and to make the necessary recommendations to the member governments.

Article 32. The high authority is empowered to make to the member governments such recommendations as it may deem useful to the accomplishment of its mission on the occasion of the negotiation by these governments of commercial agreements, to the extent that such agreements concern coal, steel, and equipment necessary for the production of coal and steel in the member countries.

Article 33. The high authority has the power to institute appropriate controls to insure respect for its decisions by enterprises, and to impose fines.

Text to be continued in subsequent telegram.

Sent Department 3083; repeated information London 865 eyes only Douglas, Frankfort 436 eyes only McCloy, Rome 237 eyes only Dunn; Brussels unnumbered eyes only Murphy, The Hague unnumbered eyes only Chapin.

  1. See the documentation on negotiations at Habana from November 1947 to February 1948, looking toward the establishment of an International Trade Organization (ITO), in Foreign Relations, 1948, vol. i, pp. 802 ff.