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

49. Telegram From the Department of State to the Mission at the European Coal and Steel Community⁰

February 12, 1959, 7:08 p.m.

Luxco 215. Luxembourg for USEC and Emb. Brussels for USEC and Emb. USRO for info. (1) Colux 159 rptd Bonn Colux 49, Duesseldorf 26, Brussels Colux 39, The Hague Colux 35, Paris Colux 69, Rome Colux 37, London, Geneva unnumbered.¹ (2) Brussels’ 1071, rptd Brussels Busec 14, Bonn 40, Luxembourg 53, Paris, Rome, The Hague unnumbered.²

1. Dept concerned possibility long-term German coal import restriction and spread German-type measures on imported coal to other CSC countries, by individual CSC member governments or by HA or Council of Ministers. To make certain CSC member governments and HA fully informed US views this matter, Dept requests Embs addressee CSC posts other than US mission Luxembourg and Bonn inform FonOffs at appropriately high levels along following lines:

(a) Dept has submitted strong protest FedRep objecting German restrictions US coal and has requested 60-day stay of order to permit reconsideration and negotiation. Although FedRep has indicated Govt would not consider delay as requested, Dept is continuing oppose tariff-quota in principle. German restrictions have also evoked vigorous representations US coal industry, labor and Congressional representatives urging retaliation against German exports to US and threatening efforts obtain amendment Mutual Security Act strengthening Buy American and other provisions making more difficult foreign countries export to US. Spread of restrictive coal import measures would increase possibility repercussions US commercial policy adverse to interests countries concerned.

(b) Member countries CSC presumably have strong interest preserving reputation Community as outward looking, particularly in commercial policy field. Although recognize political and economic problems involved coal situation, consider CSC temporary coal surplus might have been prevented or greatly ameliorated by timely action in countries affected through variety measures provided for in CSC Treaty over five-year transitional period. Coal industry in US depressed and likely US industry and labor will be more adversely affected by European import restrictions than European coal industry and miners by internal measures CSC governments might take. Moreover, coal situation in US also presents political problems not dissimilar from political problems involved CSC countries.

(c) Restrictive measures appear to have aroused not only US but several other coal exporting countries, including UK and Norway. No doubt German-CSC measures will come to attention other countries not sympathetic CSC or EEC contributing to their concern re impact Six-country integration their markets. Dept also concerned use opponents European integration in US may make of German-CSC restrictions. Congressional representatives in US already calling for retaliation European imports to US.

(d) View foregoing, consider in long-run self-interest CSC countries: (a) take internal measures available under CSC Treaty adapt respective industries so as avoid restrictive measures toward third countries; (b) strengthen HA in efforts maintain liberal trade policy and rationalize Community coal industry, to meet balanced energy needs over long-run period.

(e) Dept making similar approach to High Authority.

Separate message follows to US Mission Luxembourg. Bonn may inform FedRep foregoing representations.³

Dillon

0. Source: Department of State, Central Files, 840.00/2–759. Official Use Only; Priority. Drafted by Kupinsky; cleared in GEA, WE, E, and RA; and approved by Merchant. Sent to Brussels, Bonn, Rome, The Hague, and Paris and repeated to London, Bremen, Dusseldorf, Geneva, and Hamburg.
1. In Colux 159, February 7, Butterworth reported on discussions within the ECSC Council of Ministers on the issue of German coal import restrictions. (ibid.)
2. In telegram 1071 from Brussels, February 10, the Ambassador reported on conversations with Belgian officials about restrictions on coal imports from the United States and on Belgian concerns for the future of their national coal industry. (ibid., 850.33/2–1059)
3. In Luxco 214, February 12, the Department instructed the Mission at the European Communities at Luxembourg to request a 60-day stay on the imposition of ECSC recommendations for coal restrictions. (ibid., 840.00/2–759)