Foreign Relations of the United States, 1955–1957, Western European Security and Integration, Volume IV

91. Minutes of the 16th Meeting of the Council on Foreign Economic Policy, Washington, April 19, 1955¹

Washington, April 19, 1955

ATTENDANCE

• Messers. Hoover, Waugh, Robertson, Jarvis, Turnage, Humphrey, Burgess, Morse, Butz, Roberts, S. Anderson, Stassen, Matteson, Richardson, Hauge, D. Anderson, Johnson, Burns, Rockefeller, May, Thorp, Wormser, Brundage, Hubbell, Cooley, Rock, Dodge, Hutchinson, Cullen

Draft Minutes of the 15th Meeting, Tuesday, April 5, 1955, were approved.

[Here follows discussion of CFEP 505, “P.L. 480—U.S. Policy With Respect to the Export of Rice to Asia.”]

FEP 520. U.S. Policy Toward European Coal and Steel Community.

1. The following documents, CFEP 520/1, 520/2, 520/3 and 520/4 were summarized by the Chairman.

2. It was agreed that the problem could be stated as follows:

To determine whether the operations of the European Coal and Steel Community are giving rise to, or are failing to prevent the increase of, restrictive practices through cartels and to determine what further U.S. action should be taken in connection with developing a competitive market for coal and steel in Europe. Included in this problem are the following questions:

a. Are restrictive practices in the coal and steel industries of the Community (1) declining; (2) continuing much as in the past; or (3) increasing?

b. If continuing or increasing, is it despite the efforts of the High Authority or with the High Authority’s tacit or express authorization?

c. What means are available to the High Authority to deal with cartels and their activities?

3. It was further agreed that under the terms of the Charter of the High Authority and the U.S. loan agreement, the reported developments would seem to warrant a continued concern by the U.S. Government and as evidence of that concern more definitive steps should be taken to determine what actually has been and is taking place. The Council, therefore, adopted the position that:

a. No change should be made at this time in the policy of United States support for the Coal and Steel Community as a constructive development toward the economic and political integration of Europe.

b. The United States should continue to encourage the High Authority to use its powers to develop a competitive market for coal and steel.

c. In view of the inconclusiveness of present evidence as to whether the High Authority is using the legal authority available to it, or as administering the U.S. loan of $100 million, in such a way as to exercise the maximum influence to prevent the further development or to reduce the existing level of restrictive arrangements, the Department of State should:

(1) take steps to examine and determine

(a) the nature and extent of business arrangements which have been approved or rejected by the High Authority under the anti-cartel provisions of the Treaty;

(b) the nature and extent of restrictive practices of firms which have received loans from the High Authority;

(c) cases in which the High Authority’s orders have been disregarded by the firm or firms involved and the High Authority’s action thereon;

(d) whether national governments are hampering efforts of the High Authority to develop more competitive markets;

(e) actions taken by the High Authority against restrictive and monopolistic practices; and

(f) actions taken by the High Authority in other areas designed to develop more competitive markets.

(2) Submit recommendations based on the above determinations for further U.S. action in connection with developing a competitive market for coal and steel in Europe.

Paul H. Cullen

1. Source: Eisenhower Library, CFEP Records. Secret. Drafted by Lieutenant Colonel Paul H. Cullen, USA, Secretary of the CFEP.