840.20/4–3051: Telegram
The Secretary of State to the Embassy in France 1
5764. Urtel 6556.2 Fr agri pool proposal has been subject Dept and inter-Dept discussions. Position developed in Dept has reed prelim agreement in principle ECA and Agri. Currently seeking definitive clearance interested agencies. Approved paper will be sent soonest. Substance as fol:
- 1.
- While U.S. supports gen objectives agricultural pool plan—namely, increasing level food consumption in Eur, providing degree of security for Eur agri, and obtaining benefits Eur econ integration—plan along lines so far proposed by Fr wld not be effective or desirable means achieving these purposes.
- 2.
- While Fr look upon proposal as logical extension Schuman Plan, in view of US far-reaching polit implications in Schuman Plan are not present in agri pool proposal. Accordingly, in evaluating agri proposal predominant weight must be given its econ effects.
- 3.
- As we understand, Fr plan in present form wld result in clear disadvantages for pool countries as a whole in first three stages of plan, during which principal effect will be to increase degree protection for member countries and raise prices in pool market. In fact, there is real possibility net disadvantage for pool countries as [Page 22] group in first three stages. Furthermore, no firm commitment for merger Eur national markets (the fourth stage) which is to be achieved only at indefinite future date.
- 4.
- US considers that cooperation among Eur nations in field agri can serve very useful purpose and can contribute to objectives mentioned in para 1 above, particularly through measures designed improve agri techniques and increase agri productivity. US believes that FAO and Food and Agri Comite of OEEC can be of special assistance in analyzing Eur Agri problems and, if requested, cld develop constructive proposals in line with Fr objectives. By taking advantage experience these groups, it is believed prospects for successful mtg wld be greatly enhanced. It wld be desirable therefore to arrange conference at time which wld permit dels have views these agencies. End summary.
Wld appreciate amplification soonest of last sentence reftel, particularly with reference suggestion in point 4 above. Intent this suggestion is to guide proposed agri mtg into more constructive channels and avoid unfavorable aspects of present Fr plan.
Request all missions answer any official inquiries by saying Fr proposal being studied by US and that we expect be able comment shortly. Any unofficial discussions shld be kept consistent with proposed position outlined above.
Wld welcome any comments on proposed US position.
- Drafted by Louis C. Boochever of EUR/RA and Joseph A. Greenwald of CP. Approved by S/S; transmitted and signed for the Secretary of State by Raymond Vernon of CP. Passed to OSR in Paris and repeated to London, Rome, The Hague, Frankfurt, Geneva, Strasbourg, and Brussels.↩
- Telegram 6556 reported the statement of French Agricultural Minister Pierre Pflimlin that he would welcome U.S. support for the French proposals concerning the establishment of a European agricultural pool as reported in despatch 294 from Strasbourg, Document 4. (851.20/4–2751)↩