Office of the Historian

189. Letter From the Chairman of the Council on Foreign Economic Policy (Randall) to the Secretary of State1

Washington, October 4, 1956.

My Dear Mr. Secretary: I was tremendously interested in your cogent remarks this morning about the common market concept for Europe.2

On my recent trip to the other side, this subject was foremost in almost every conference that I held.3

I agree most heartily with the opinion you expressed today that the United States should support this project to the limit.

I have a task force studying it, and it will make a report shortly to the Council on Foreign Economic Policy.

It is my personal opinion that this subject will move swiftly now in Britain, and that their decision may be taken shortly after the turn of the year.

When that time comes, I feel that we should promptly make a public statement in support of the project. As you know, we hold an indirect veto over it because the consent of the GATT will be required. That will give us an opportunity to do some trading also, but I would be strongly opposed to our over-trading.

There will be strong opposition in this country when this idea develops. The protectionist group do not seem yet to have been alerted to it, but that cannot long be delayed, and it will be argued powerfully that German manufacturers will now drive our products out of the European market.

There will also be delicate questions to work out with respect to the most-favored-nation principle.

It is my own conviction that this may be the most significant economic event in my generation, and I wish it well.

Sincerely yours,

CBR
Clarence B. Randall
Special Assistant to the President
  1. Source: Department of State, Central Files, 440.002/10–456. Confidential.↩
  2. Reference is unclear.↩
  3. Randall visited Paris, Bonn, and London between September 8 and 14. Documentation on his trips is in Department of State, Central Files, 033.1100–RA.↩