Foreign Relations of the United States, 1955–1957, Western Europe and Canada, Volume XXVII

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

Washington, August 7, 1957.

Dear Foster: This is by way of reply to your letter of July 25,² which you dictated while you were in Ottawa, with respect to the subject of United States-Canadian economic integration.

I want to make absolutely sure that I understand your viewpoint.

My staff have suggested to me that implied in your letter is a request that the CFEP do not discuss this matter.

I had not so interpreted your meaning. Since the question has been raised, however, I could not, in good conscience, take any further step without being reassured.

I hope very much that this was not your meaning. I recognize clearly the sensitive political implications that are involved, but this is an important economic question also, and discussion of it, as such, ought not to be foreclosed, in my opinion. I hold the deep conviction that there are times when economic progress can be made only by the same sort of bold strategy which you have so often and so successfully employed in the area of political problems.

If such bold strokes may not be discussed within the CFEP, the Council would, in my opinion, be cut down in significance below the purpose which it was intended to fulfill.

I know that some in the State Department feel that placing this item on the agenda of the Council would run the risk of leaks. This, as I see it, is easy to handle. It can be left off the agenda, and I can substitute personal notification to the principals. Then, when discussion comes, staff can be eliminated from the room. You would then have left only those who attend Cabinet and NSC meetings.

I hope very much, therefore, that you will feel that it is proper for this question to be discussed at a Council meeting, and that you may find it convenient to be present in person and present your viewpoint.

Now let me add one or two detailed comments on your letter:

Be very sure that I had in no way interpreted the memorandum prepared by the State Department staff on this subject³ as reflecting your personal views. It was merely a working document to form the basis for discussion in CFEP, prepared for convenience by the State Department staff because of the limitations of my own staff here.

Your point about the other American republics is one that we have often discussed, and it is my personal opinion that it would present no serious difficulty. An open invitation could be extended to any nation to join which wishes to, which is really the underlying principle of the proposed Free Trade Area in Europe.⁴

Sincerely yours,

CLARENCE

1. Source: Eisenhower Library, Whitman File, Dulles–Herter Series. Secret.
2. Document 373.
3. Document 364.
4. On August 8, Dulles told Randall that it was his view that it would not be timely to discuss economic integration with Canada. This view was strengthened, continued Dulles, by his recent visit to Ottawa, when he learned that Canada’s Conservative government desired closer economic cooperation with the United Kingdom rather than with the United States. (Memorandum of conversation by Dulles, August 8; Eisenhower Library, Whitman File, Dulles–Herter Series) Nevertheless, on November 1, Dulles authorized the Department to inform Randall that it had no objection to a discussion in a restricted session of the CFEP of closer trade relations with Canada, “in view of the British proposal for a common market with Canada and the extensive discussions of trade relations with the Canadians during the recent U.S.-Canadian Ministerial talks.” (Memorandum from Dillon to Dulles, November 1; Department of State, Central Files, 411.4241/11–157)