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No. 690
The United States Representative to the European Coal and Steel Community (Bruce) to the Department of State1

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Coled 258. Re Embtel 4500.2

1.
According to Alphand, Maurice Schumann has not yet discussed with Teitgen the three objections to ad referendum agreement on Saar mentioned reftel. Alphand sent note to Teitgen this morning emphasizing risks involved in giving Germany any opportunity to repoen negotiations and arguing against three objections on following grounds:
(a)
Problem of balance of payments is minimal in any case. Furthermore French already have adequate guarantees against undesirable increase in trade because French can use their veto to interpret “gravely” as they wish and because maintenance Franco-Saar economic and currency union on present basis is made governing factor. Moreover, if language “French-German balance of payments” is used, French wld not be covered for increased trade that might be paid for in currencies other than French francs or Deutsche marks.
(b)
Language on powers of European Commissioner does not, contrary to Schumann’s view, take any powers away from Saar Govt and give them to the Commissioner. (Article II of General Affairs Committee resolution remains intact.)
(c)
Article 19 refers to European statute (i.e. document to be signed and ratified by interested countries) and not to status of Saar as European territory. U.S. and U.K. guarantee therefore covers all stages of Europeanization mentioned in Article 1 of agreement.
2.
According to Alphand, Maurice Schumann is closeted this morning with Grandval and Quai d’Orsay advisers. Mtg is scheduled with Teitgen this afternoon. Combat carries vicious editorial this morning on Teitgen’s efforts in Strasbourg and concludes:

“But Mr. Grandval, our High Commissioner in Saarbrucken, has made no secret to Mr. Laniel and Mr. Bidault that he will not stand idly by while the Franco-Saar economic bloc is destroyed and a policy followed for nine years by successive French Govts is reversed.”

3.
No reference should be made to Alphand’s role in this matter in any context.
Bruce
  1. Repeated to London, Bonn, and Geneva.
  2. Supra.