99. Telegram From the Embassy in France to the Department of State 0

Secun 4. The following message for President from Under Secretary:

“January 15, 1960.

Dear Mr. President: Thank you for your telegram which I very much appreciated.1 Everything went very smoothly yesterday and the 20 OEEC governments approved all the recommendations of the committee of 13 without change. The spirit of jealousy and petty animosity which had somewhat marred the working sessions of the 13 had completely disappeared.2 Instead there was general satisfaction that an important forward step had been taken. Heathcoat Amory, allowed a free hand by his partners in the Outer Seven, presided in a most effective manner.

The essential success of the meeting was due to the fact that even though final solutions are a long way off the Six and the Seven are once more talking with each other and can see a possibility of settling their differences by submerging them in a larger program of cooperation including the U.S. and Canada. All concerned were full of praise for your initiative last December.3

At dinner Amory told me that British had now decided that any early overall solution of Six and Seven problems impossible and that progress can only be made by series of small steps which might gradually reduce area of trade discrimination to acceptable proportions. This has always been our position and is fully acceptable to the Six. Once this concept has been accepted by the more impatient members of the Seven, that is Sweden, Switzerland and Austria, the way will be open for progress towards an eventual solution of this potentially explosive problem.

I found our European friends very reluctant to make any mention of Japan in the resolutions because of the unresolved trade problems between them and Japan. However, the resolution on coordination of aid provides that the group of capital exporting countries can invite other nations to participate in their work. We have unofficial assurances that there will be no objection to our inviting Japan to take part in the work of this group as a full member at its first meeting which we hope will take place in Washington during the latter part of February.

Faithfully yours, Douglas Dillon”.

  1. Source: Department of State, Central Files, 374.800/1–1560. Confidential; Niact.
  2. In Unsec 8, January 14, Eisenhower congratulated Dillon on the success of the meetings of the Special Economic Committee. The President also inquired why there had been no mention of Japanese participation in the new organization and stressed his interest in Japanese involvement. (ibid., Conference Files: Lot 64 D 559, Under Secretary’s Visit to Paris)
  3. See Document 98.
  4. Reference is to the proposals that Eisenhower made at the Paris Heads of Government Meeting December 19–21, 1959; see Document 93.