Foreign Relations of the United States, 1958–1960, Western European Integration and Security, Canada, Volume VII, Part 1

125. Circular Airgram From the Department of State to Certain Diplomatic Missions⁰

October 20, 1960, 10:15 p.m.

CG–359. Following is Dept’s current appraisal present status of Six-Seven issue, based on discussions in Washington during Bank and Fund week¹ with French, British, Canadian and EEC officials and on previous and subsequent reporting from field:

1. In general, we do not see emerging within next year any agreement on long-term relationship between UK and Six or between EFTA and Six. Best chance for progress in easing difficulties remains in field of reducing tariffs of EEC and EFTA through GATT negotiations. No evidence so far of any slackening in willingness of UK or Six to make these negotiations successful.

2. French position on Six-Seven problem has not altered. French continue unwilling accept any special arrangement with UK on basis other than UK acceptance of full integration concepts of Rome Treaty. French consider that obstacles confronting UK in relation to Commonwealth, domestic agriculture and now EFTA tie, will make it impossible for UK to come up with any specific proposal which could serve as basis for negotiation. French seem confident that Germans will not initiate specific proposals going beyond commodity-by-commodity approach already envisaged in studies of Trade Committee of 21 and GATT negotiations.

3. Adenauer–Macmillan conversations² have undoubtedly stimulated hope in UK leaders that political atmosphere for long-term settlement more favorable than before. However, fundamental obstacles have not been overcome. While UK continuing intensive studies undertaken following talks with Adenauer, appears certain that UK will not come forward with any specific public proposals until it has assured itself they likely be accepted. At present juncture we take it for granted that any arrangement acceptable to UK would at minimum have to make special provision for Commonwealth access to UK market and also exempt agriculture in whole or in part. Clear that UK impressed with serious implications for future of Commonwealth if preference system³ eliminated as consequence joining Six. UK will not accept Rome Treaty as it stands and would have to propose major changes. Gap therefore remains wide and is in our view presently unbridgeable.

4. Most significant change in UK thinking is that British now appear to be motivated by the political desirability of closer orientation to the continent and are now giving serious thought to customs union as distinct from earlier attachment to European-wide free trade area arrangement which appears to have been abandoned. As indicated above, however, in UK view customs union would have to be heavily qualified to take care of agriculture and Commonwealth. UK views re status of other members of EFTA under possible customs union and re institutional implications, including common external policy, not clear.

5. Despite encouragement given to Macmillan by Adenauer re possibilities for solution of Six-Seven problem, does not appear that Germans have any solution to offer other than tariff reductions through the GATT negotiations. They have since reaffirmed their opposition to any alteration in Rome Treaty and their adherence to the acceleration of the Common Market.

6. Italians continue feel that question of UK relations with EEC best left for future and give indication of continuing suspicion re UK motives in seeking accommodation.

7. Re deGaulle proposals for organization of Six, although French unwilling confirm, we have impression that as originally put forward proposals would have curtailed powers of EEC Commission vis-à-vis those of Council of Ministers (requiring amendment of Rome Treaty) as well as creating new institution in Paris to support regular consultations, on unanimity basis, in political, defense and cultural fields. In light of reactions of other Five proposals now appear to have been changed along following lines: (1) Powers of EEC Commission will remain as before, but Permdels of Six at Brussels will be authorized to approve certain less important matters previously requiring approval of Council of Ministers. (2) There will be no secretariat or other institution located in Paris. (3) There will be periodic meetings of heads of state. In general, our view of the DeGaulle proposals, depending upon their nature, is that they deserve support in the measure that they further genuine integration of the Six on the basis of the concepts of the Rome Treaty but that if they are likely to weaken the integration concept a serious question would arise.

Herter

0. Source: Department of State, Central Files, 375.42/10–2060. Confidential. Drafted by Leddy. Sent to the OEEC countries, to Canberra, to USRO, BUSEC, and USEC.
1. The annual meeting of the International Monetary Fund and International Bank for Reconstruction and Development was held in Washington September 26–30.
2. See footnote 1, Document 121.
3. The preferential trading agreement between the United Kingdom, its colonies, and member states of the British Commonwealth of Nations.