73. Circular Telegram From the Department of State to the Mission to GATT, at Geneva1

1443. 1. We are concerned over press stories (most recently NY Times international edition January 20) reporting US–EFTA “alliance” and implying changed US policy toward EEC. Pattern of stories indicates they may have been planted as part coordinated campaign. Although lacking confirmation, we have reason to believe one source may have been EFTA Information Office Geneva, whose new chief is imaginative, experienced publicist. We do not believe stories serve either our interests or those of EFTA countries.

2. “Alliance” is reportedly based on mutual desire of US and EFTA countries for successful Kennedy Round. We appreciate that this mutual desire exists and, in fact, it may be necessary as tactical measure for US and EFTA countries to isolate EEC on some issues, like disparities, on which success of Kennedy Round depends. However, any implication this tacit cooperation being formalized into “alliance” can only serve to defeat common objective which we share. It has effect of bolstering strength of minority in EEC which sees Kennedy Round as attempt to undermine EEC cohesion by dismantling CXT. Moreover some Europeans, such as Hallstein and Monnet, have been most vocal in support of [Page 187] Kennedy Round precisely because they see problem in political terms of US–EEC relation. Our theme has been and must remain that trade liberalization possible through Kennedy Round will benefit all participants. We must carefully avoid presentation of Kennedy Round as attempt by US and EFTA countries to gang up on EEC.

3. In addition to these vital economic considerations, there is no political basis for reports. We regard EEC as nucleus united Europe, which we support for sake European stability and Atlantic partnership. “Partnership” implies give-and-take relationship with inevitable disputes and differences of opinion. EFTA observers and others should not be led to make mistake of interpreting these differences as evidence of changed US policy toward EEC.

4. Drawing on para 2, Mission should take appropriate opportunity to make above points to EFTA officials, possibly including Figgures.2 Other addressees may draw on this message at their own discretion.

Rusk
  1. Source: Department of State, Central Files, ECIN 6 EFTA. Confidential. Drafted by Joel W. Biller (EUR/RPE); cleared by Hinton, BNA, WE, OT, and Herter; and approved by Schaetzel. Repeated to Bern, Bonn, Brussels (for the Embassy and USEC), Copenhagen, Helsinki, Lisbon, London, Luxembourg, Oslo, Paris (for the Embassy and USRO), Rome, Stockholm, The Hague, and Vienna.
  2. Frank E. Figgures, Secretary General of the EFTA.