85. Report by the Foreign Operations Administration to the Council on Foreign Economic Policy1

CFEP 520/2


1. Summary

FOA believes the cartel problem in Europe is one of long standing with broad political and social as well as economic implications, that during this holding period in the progress towards an integrated European economy the CSC finds itself at a relative disadvantage vis-à-vis nationalist and cartel pressures, and consequently is less able to take enough necessary and desired anti-cartel actions. The cartel problem in Europe is a serious one. However, the most serious developments of cartel activity are national ones, notably in Germany and France, against which the CSC is struggling. FOA concludes that the only long range solution will be found in healthy conditions of free and expanding economies, and therefore that U.S. foreign economic policy in Europe should emphasize to an ever greater degree, as our aid diminishes, support of economic expansion, productivity, convertibility and reduction of trade barriers.

2. Conclusions

U.S. policy toward the High Authority and the CSC itself is sound and should be continued. Furthermore, the HA is the only agency in Europe armed with effective anti-cartel legislation. Technical assistance could help, as in the event of a reorganization of the Ruhr coal sales cartel.
National cartel activities, as in Germany and France, are the most dangerous, and thus merit priority of attention. Technical assistance projects can be of assistance here.
Concentrated U.S. attention to the long term cartel problem in Europe is warranted in cooperation with U.S. missions abroad.
The only long range solution is in terms of expanding economies and an integrated Europe. Hence U.S. foreign economic policy in Europe should continue to emphasize economic expansion, increased productivity, convertibility, reduction of trade barriers, increased free trade, and eventual European integration.

[Here follows the seven-page FOA statement on the cartel aspects of the ECSC]

  1. Source: Department of State, ECFEP Files: Lot 61 D 282A, CFEP 520/2. Secret.