254. Telegram From the Department of State to the Embassy in Belgium1

6. Dept has studied problem of formulating principles for constitutional revision, immediate measures to be taken to achieve substantial progress toward integration Katanga, and pressures that might be applied to achieve integration. Following cable2 contains text of formulation that we believe Gardiner might propose to Adoula and, if acceptable to him, to Tshombe for immediate implementation.

In light Dept’s knowledge positions taken by Adoula and Tshombe in recent talks, does not appear any substantial change needed in constitutional principles outlined Tripartite London paper.3 In recent talks Tshombe appeared willing accept in principle (though not for immediate implementation) some of most important powers of national government as outlined in London paper: foreign affairs, national defense, currency and foreign exchange.

Immediate practical measures outlined in following telegram are substantially the same as those set forth in Deptel 3346 to USUN4 and in London paper. They have been enlarged somewhat with respect to fiscal, foreign exchange, and budgetary control measures.

We believe that Adoula agreement to “Gardiner formula” in following tel and to financial controls will be facilitated by offer of external financial support to GOC and that Tshombe’s agreement will be facilitated by establishment of controls that would insure sound fiscal, foreign exchange, and budgetary management by GOC. In addition there are other measures which might persuade Adoula and Tshombe to agree. Many of first stage measures outlined Deptel 3346 to USUN are deemed impractical by Spaak. Taking account his views it nevertheless would appear that following are possible:

a)
Threat of GOB to withdraw its technicians from Katanga if Tshombe did not accept or implement agreement.
b)
UK and GOB to urge British and Belgian companies to use their influence on Tshombe and, in particular, not to pay dividends.
c)
Pressure on BCK to facilitate more rapid rebuilding Lubilash Bridge.
d)
USG and GOB to urge GOC to pass legislation on collection and division customs and tax revenues.
e)
Increased economic assistance which would benefit entire Congo, including Katanga, such assistance being linked to agreement on foreign exchange controls.
f)
Collection of Congolese import duties by Antwerp Customs Office.

If no effective progress made toward reintegration within reasonable period (end of July) and if Adoula accepts proposal like that contained following telegram and Tshombe refuses accept such proposal or carry it out, US and GOB would urgently consult with UN about other measures to be taken, including question whether Security Council meeting necessary or desirable. Measures which be urgently considered would be following:

a)
Stationing of UN troops in Jadotville, Kolwezi and Kipushi provide security for company installations.
b)
UN backing of GOC customs authorities for tax collection scheme at such points as are deemed feasible and effective.
c)
Embargo on all imports of copper from Katanga. Dept urgently studying pattern UMHK exports to determine which countries could most effectively implement embargo. Preliminarily, it appears US does not import any substantial quantity Katangan copper and that most of it goes initially to Belgium, UK and Germany.

As Thant leaving New York July 4, USUN should discuss with Thant and Gardiner July 3, after prior consultation with Loridan. If GOB reaction not then available, such discussion would have to be subject to Belgian reaction.

Brussels requested discuss urgently with GOB and report soonest. Views other addressees appreciated.

Rusk
  1. Source: Department of State, Central Files, 770G.00/7–262. Confidential; Niact. Drafted by Ford; cleared by Fredericks, Wallner, and Burdett; and approved by McGhee. Also sent to USUN and repeated to Léopoldville, London, Paris, and Elisabethville.
  2. Telegram 7 to Brussels, July 2. (Ibid.)
  3. See Document 236.
  4. Document 251.