850.33/12–2850

Memorandum by the Assistant Secretary of State for European Affairs (Perkins) to the Secretary of State

secret

Negotiations on the text of a treaty to implement the Schuman Plan are nearing completion. The heads of the delegations of the six countries have adjourned until January 8. According to the present schedule, which is undoubtedly optimistic, the heads of delegations should complete their work on the treaty text about January 15 enabling the Ministers of the six countries to meet during the latter half of January to decide various questions which the negotiators have left open, such as the number of people on the high authority and method of voting, and to initial the treaty.

The chief remaining obstacles to complete agreement by the negotiators appear to lie in the proposed cartel provisions of the treaty and in arrangements for the interim protection of the high-cost Belgian [Page 767] coal mines. On the former point, the Germans apparently fear that the proposed provisions would prevent their steel industry, now in process of reorganization under the deconcentration statutes, from acquiring captive coal mines at some later date; the Germans also would like to continue their arrangements for a central sales organization for German coal, which might be outlawed by the cartel provisions. The arrangements for protection of high-cost Belgian coal may soon be agreed upon, although the solution seems to be taking a form at variance with the concept of a single market for coal among all the participants.

After the initialing of the treaty the remaining hurdles will be securing parliamentary ratification, which may prove difficult in Germany and France, and securing waivers from outside countries of their conflicting treaty rights.

As to the question of whether there is anything additional the U.S. should be doing in connection with the Schuman Plan, we are re-canvassing the situation here in Washington. However, in view of Jack McCloy’s and Dave Bruce’s great interest in the situation, it seems unlikely they are leaving any stone unturned.