257. Memorandum of Conversation1
SUBJECT
- Kennedy Round, EEC Development, Trade Policy, UK Accession to EEC
PARTICIPANTS
- The Secretary
- Jean Rey, EEC Commissioner for External Relations
- M. Rifflet, Chef de Cabinet to M. Rey
- Ambassador Schaetzel, U.S. Representative to the EEC
- LeRoy F. Percival, Jr., Deputy Director, EUR/RPE
The Secretary congratulated M. Rey on his selection as President of the new Commission of the European Communities and congratulated him on his efforts to achieve a really successful Kennedy Round. He said the U.S. was pleased with the outcome though undoubtedly there would be “guerilla” attacks by protectionists and special pleaders on some aspects of the settlement. He added that the political consequences of a failure would have been catastrophic.
Rey agreed and said protectionist forces would have gained the upper hand and undone all that has been accomplished in freeing world trade and economic growth.
The Secretary agreed and said protectionist forces will seek to prevent further movement in trade liberalization. He explained that President Kennedy had sought the TEA on the ground that just to get the Trade Agreement Act renewed was such a fight so why not have the fight and get legislation which it appeared more worthwhile to seek legislation which was much more significant.
Rey said he realized we would have a fight on the Hill over ASP and therefore the Community had told its people and industries to keep quiet and not agitate the matter. Rey said the farm lobby pressures in the Community had great political impact but would be reduced in his opinion as the modernization of agriculture proceeded to oblige more and more farmers to leave the land.
The Secretary commented that we had strong pressures from the Hill on many matters. He explained that for the first time we had trouble on NATO as a result of the Mansfield Resolution backed by the Democratic Policy Committee to withdraw troops from Europe. This was now stopped but the onslaught had occurred because of our extensive commitments in Vietnam and concern that there was a double standard in NATO on defense contributions.
Rey commented that Europe needs to have a more united view to present in partnership to the United States. French behaviour has damaged NATO and Atlantic cooperation but he was confident this was temporary.
The Secretary said Europe should become more outward looking and play more of a world role.
Rey replied that had the Community not been preoccupied with its internal problems, it could have played a role in seeking to improve Arab-Israeli relations. It has the means. If it could only advance toward [Page 584] political unity, its world role and responsibilities would be enhanced. He hoped that now that the Community has resolved many major internal problems, it will increasingly take a responsible outward looking role.
In this connection, he said we needed a common position for UNCTAD II on trade with LDCs.
The Secretary recalled the President’s Punta del Este statement2 and said, “We’ve moved.”
Rey replied that the Commission would make a general preferences system proposal to the Council of Ministers in the fall. He thought we could achieve a “rapprochement” of positions.
The Secretary commented that it took a lot of consultation on the Hill before this statement could be made and explained U.S. Constitutional procedures.
The Secretary mentioned the NPT and the safeguards issue.
Rey said he was not familiar with the details. He planned to see Chairman Seaborg in the morning.
The Secretary asked if the UK would get into the Common Market.
Rey said “yes.” The French were pursuing delaying tactics. In his opinion, they were not prepared to stop negotiations. He expected that the procedure under Article 237 of the Rome Treaty would be followed. If the advice of the Commission is requested as provided for, the Commission will undoubtedly take the position that it must talk to the British. He guessed the Council would approve and doubted they would veto.
The Secretary asked if the U.S. should remain publicly silent on this matter. M. Rey responded with an emphatic “yes.”
The Secretary commented that Mr. Wilson might at some point “cock his snoot” at the U.S. for De Gaulle’s consumption.
Rey thought he might but commented that more and more high level political figures in France realize one cannot say unite Europe and then pursue divisive policies. He said the General was really showing signs of age and his Ministers in many cases were already thinking differently and looking toward their political futures. The evolution of French policy was interesting. In 1964, France tried to destroy the Community. Now it is playing the game. At the time of the Dillon Round, the General saw Rey on television and is reported to have said, “Who is that man who speaks in the name of France?” At the Rome Summit, he said, “Congratulations, Mr. Rey, you have succeeded.” He added that French cooperation in the last days of the Kennedy Round negotiation was striking.
- Source: Department of State, Central Files, FT 13–2 US. Confidential. Drafted by Percival and approved in S on June 14. The time of the meeting is from Rusk’s Appointment Book. Memoranda of Rey’s conversations with Bator, Leddy, and Owen, all on June 9, are ibid., EEC 3, ECIN 3 EEC, and FT 13–2 US.↩
- For text of this statement, April 12, see Public Papers of the Presidents of the United States: Lyndon B. Johnson, 1967, pp. 444–446.↩