Foreign Relations of the United States, 1951, European Security and the German Question, Volume III, Part 1

7405/10–2251: Telegram

The Ambassador in France (Bruce) to the Secretary of State ¹

confidential

Paris, October 22, 1951—8 p. m.

2358. Subject is Eur Defense Forces. October 19 meeting of steering comite largely devoted to statement by newly appointed chairman of conference armament and mobilisation comite on problems which this comite wld have to face. Chairman is Hirsch who had primary responsibility under Monnet for negotiations for Schuman Plan.²

According to Hirsch’s statement, new comite will be responsible for dealing with all questions raised by economic role of commissioner—in particular preparation and execution of armament program, exercise of control over production and trade necessary to assure carrying out of this program—and problem of industrial mobilization.

Comite’s proposals will serve as a basis for drafting such provisions as may be necessary on these subjects for treaty transitional convention and other attached documents.

In introducing Hirsch, Alphand stressed conference’s agreement recorded in Art 10 of interim report³ that common armament and equipment program for Eur forces wld be established and executed by commissioner, as well as provision in interim report that end-item aid received on basis mutual aid program wld be received and allocated by commissioner. In his report Hirsch noted number and complexity of problems which fell within competence of his comite and stated that as general principle comite shld deal first with those problems whose solution wld be embodied in treaty, transitional convention or attached protocol. He dealt at some length with fol points:

1. Establishment of armament program. In Hirsch’s view, financial comite recommendation (Embtel 2245, October 17⁴) that Eur budget shld be broken down in some detail meant that broad armament program wld in effect accompany budget and discussion of it by various institutions of community, in particular council and assembly, wld take place at that time. Hirseh did not believe any particular provisions wld be necessary in treaty on this subject.

Execution of armament program. Major preoccupation of armament wld in Hirsch’s opinion be to work out powers required by the commissioner for effective execution of armament program and conditions under which such powers wld be exercised. In his preliminary view fol questions in particular wld come up:

(a) Because execution of armament program wld have important effects on economies of member states, commissioner wld have to work closely with council representing member govts. To assure effectiveness of execution, however, no formal limitations shld be placed upon commissioner except perhaps as concerns financial questions such as transfer problems (see Embtel 2245). Commissioner shld also be required consult on certain questions with consultative comite representing producers, workers and interested groups.

(b) Commissioner wld need power to obtain and verify info to the extent required for execution of armament program. This cld be done somewhat on same basis as Art. 47 of Schuman plan treaty.

(c) Comite shld also make clear that procurement contracts wld be placed directly by commissioner and that commissioner wld have full power to supervise their execution.

(d) In order to do his job, commissioner wld need extensive knowledge of total production and imports of armaments in member states. Provision shld therefore be made that any manufacture or import destined for non-EDF forces of member states shld be reported to commissioner by member govt in question. To the extent that such manufactures or imports might affect execution of comite’s armament program, commissioner shld explore with respective govt what practical measures cld be taken to prevent programs from being in conflict. Manufactures in member states of mil goods for export shld be subject to prior authorization by the commissioner.

(e) Commissioner shld have certain special powers during a period of heavy rearmament and hence of shortages in mil goods and raw materials; these powers might resemble those described in Article 59 of Schuman plan treaty. Such powers shld include compulsory orders, priorities and requisitions.

3. Mil research. Commissioner shld have right to fix research programs and to centralize and use info resulting therefrom.

4. Relations with outside organizations as concerns armament and mutual aid programs. Commissioner shld be the normal intermediary between the community and the technical organizations of NATO, as well as between community and non-member countries, on questions of armament which affect community. He shld also, as Alphand had said, allocate matériel received under mutual aid programs on the basis of the community’s armament program, as well as assure necessary liaison with international organizations such as Eur coal and steel community.

In Hirsch’s view, certain other provisions of the treaty wld also be necessary to assure proper execution of common armament program. These might include exemption for material and supplies of the community from all tariffs within territories of member states, an exemption which might be extended to semi-finished products and raw materials essential for manufacture of such matériel; and some form of special tax regime for these same materials and supplies.

In answer to a question of Dutch delegate. Hirsch added that committee wld of course have to study transitional problems in connection with armament program and particularly question of how soon a common armament program could be established.

In conclusion, Alphand proposed armament comite hold first meeting on fol Monday, Oct 22. On request of Ger delegate who argued necessity of giving further study to these questions, first meeting finally set for next Thursday, Oct 25.

Bruce

1. This telegram was repeated for information to London, Frankfurt, Rome, Brussels, The Hague, and Luxembourg.
2. For documentation regarding the attitude of the United States with respect to the establishment of a European Coal and Steel Community (Schuman Plan), see volume iv.
3. Seep.843.
4. Not printed. It reported that the Financial Committee of the European Defense Community Conference would present three papers to the Steering Committee of the Conference shortly: (1) a paper on the financial regulations outlining the principles of preparation, presentation, execution, and auditing of the common defense budget; (2) a paper that dealt with the “transfer problem” that would probably arise from the fact that the EDC would be required to effect in certain countries expenditures greater than the amount of such countries’ contributions to the EDC; (3) a paper on the Organization of a financial directorate operating tinder the Defense Commissioner. (740.5/10–1751)