840.20/11–1352: Telegram

No. 245
The Ambassador in the Netherlands (Chapin) to the Department of State 1

secret

638. Ref Embtel 589, Oct 31, rptd Paris 1082 Min Agric has made available to Emb on most confidential basis paper on Neth position Eur cooperation in field agriculture. Statement, which has not yet been made available to any Eur govts, sets forth six principles on which Dutch believe green pool shld be based. Then describes Dutch ideas for administration of green pool by high authority during transitional period. This paper is basis for Dutch position in both 16 nation Jan green pool conf and any discussions which are held meanwhile between Schuman Plan countries for six nation agric unification. Ideas of paper will be hinted in speeches by Vanderlee, Director International Organizations in Neth Min Agric, scheduled for Stuttgart Nov 18 and Munich Nov 19 under auspices Dutch German Chambers Commerce those cities. These speeches intended familiarize Germans with Neth attitude on green pool and serve as trial balloons to test German reaction.

Mansholt has insisted existence this paper, and particularly fact that it given Emb not be revealed to representatives other Eur countries. Principles outlined as basis Dutch concept green pool fols:

(1)
Raise Eur standard living,
(2)
Thru specialization according to comparative advantage increase both total production and unit productivity,
(3)
Include all important agric products,
(4)
Establish well defined transition period (Dutch say 5 years) during which special exceptions to establishment of true common market permitted. During transition period protectionist measures must be progressively abolished according to fixed time table and increased efficiency encouraged,
(5)
Artificial differences in national price and marketing policies must be eliminated during time-phased transitional period,
(6)
Both transitional period and final phase of integrated market must be administered under high authority with supranational powers.

Transitional period seen by Dutch as time for reshaping national production and marketing patterns. During this period both national [Page 435] and general Eur regulation permitted subj to progressive disappearance. In answer specific questions, Dutch have insisted that after realization final phase no protectionism in green pool either by member countries or by pool itself will be permitted against imports from non-member countries.

English translation text of paper being dispatched.3

Chapin
  1. Repeated to Paris for SRE.
  2. Not printed; it briefly commented on the visits to the Netherlands of Spaak and Fanfani. (840.20/10–3152)
  3. The document under reference was transmitted to the Department of State in despatch 612 from The Hague, Nov. 18. (840.20/11–1852)