THIS
DOCUMENT
IS
THE
PROPERTY
Printed
OF
HIS
for the Cabinet.
BRITANN! G
April
MAJESTY^S
GOVERNMENT
1948
SECEET Copy No.
C P . (48) 98
1st April,
1948
CABINET
THE
SECOND M E E T I N G OF T H E C O M M I T T E E OF E U R O P E A N E C O N O M I C C O - O P E R A T I O N H E L D I N P A R I S F R O M 15TH T O 18TH M A R C H MEMORANDUM
BY THE SECRETARY OF STATE FOR FOREIGN
AFFAIRS
I circulate h e r e w i t h for the i n f o r m a t i o n of my colleagues a r e p o r t on the
proceedings of t h e recent meeting of the Committee of E u r o p e a n Economic Co­
o p e r a t i o n held i n P a r i s from 1 5 t h - 1 8 t h M a r c h , 1948.
2. T h e meeting, Avhich w a s convened j o i n t l y by M . B i d a u l t a n d myself,
w a s a t t e n d e d by the F o r e i g n M i n i s t e r s of all the sixteen p a r t i c i p a t i n g countries
w i t h the exception of Iceland a n d S w i t z e r l a n d . T h e P l e n a r y Session set u p a t
i t s first m e e t i n g a Committee of A l t e r n a t e s to make recommendations to the
p l e n a r y body on the three items on the a g e n d a . T h i s Committee, of which
S i r Oliver F r a n k s w a s c h a i r m a n , continued discussion on 1 7 t h a n d 18th M a r c h
a f t e r t h e F o r e i g n M i n i s t e r s h a d left the Conference.
Plenary
Sessions
3. A f t e r receiving the r e p o r t of the A l t e r n a t e s , t h e P l e n a r y Committee a t
i t s second session adopted, for transmission to the U n i t e d S t a t e s Government
by myself as C h a i r m a n of t h e Conference, a r e p o r t s e t t i n g out the progress
achieved i n E u r o p e a n Economic Co-operation since the first meeting of the Com­
m i t t e e of E u r o p e a n Economic Co-operation in P a r i s in t h e summer of 1947, a n d
took note of t h e comments of the Technical Committees on the U n i t e d States
Commodity R e p o r t s on food a n d a g r i c u l t u r e , fuel a n d power, iron a n d steel,
i n l a n d a n d m a r i t i m e t r a n s p o r t , a n d timber.
T h e S e c r e t a r y - G e n e r a l of the
Conference w a s i n s t r u c t e d to make these comments available to the p a r t i c i p a t i n g
countries a n d to the U n i t e d States Embassy i n P a r i s . T h e Conference f u r t h e r
a g r e e d t h a t the Combined U n i t e d S t a t e s - U n i t e d K i n g d o m Zone a n d the French
Zone of G e r m a n y should be r e g a r d e d as i n d e p e n d e n t p a r t i c i p a t i n g areas a n d t h a t
they should both be signatories of t h e proposed M u l t i l a t e r a l A g r e e m e n t between
t h e p a r t i c i p a t i n g countries. T h e Conference finally agreed to the establishment
of a W o r k i n g P a r t y —
(a) to consider the purpose, aims, functions a n d s t r u c t u r e of a C o n t i n u i n g
O r g a n i s a t i o n of the Committee of E u r o p e a n Economic Co-operation;
(&) to p r e p a r e a d r a f t M u l t i l a t e r a l A g r e e m e n t ; a n d
(c) to p r e p a r e for a reconvening of t h e Committee of E u r o p e a n Economic
Co-operation a t a date to be decided later.
4. I t w a s agreed t h a t the Combined U n i t e d S t a t e s - U n i t e d K i n g d o m Zone
a n d the F r e n c h Zone of G e r m a n y should p a r t i c i p a t e in t h e w o r k of the W o r k i n g
Party.
5. T h e t e x t s of t h e resolution on G e r m a n y a n d t h e resolution g i v i n g the
t e r m s of reference of the W o r k i n g P a r t y a r e a t t a c h e d as A n n e x e s A a n d B
respectively to t h i s p a p e r .
The Committee
of
Alternates
6. I t w a s hoped, before t h e Conference met, t h a t t h e M i n i s t e r i a l meeting
would not l a s t for more t h a n t w o days a n d t h a t i t would be followed by a t most
a f u r t h e r t w o days consultation between the A l t e r n a t e s . I n spite of the importance
35137
Q q
of the A g e n d a , the Conference worked w i t h impressive speed a n d we were able
to keep to the proposed time-table. A f t e r the end of the P l e n a r y Meetings, the
A l t e r n a t e s agreed upon a f u r t h e r instruction to the W o r k i n g P a r t y on the purposes,
a i m a n d s t r u c t u r e of t h e C o n t i n u i n g O r g a n i s a t i o n . T h e t e x t is a t A n n e x C.
7. A l t h o u g h the E i r e F o r e i g n M i n i s t e r could not r e f r a i n from mentioning
t h e unification of E i r e or the P o r t u g u e s e F o r e i g n M i n i s t e r the desirability of
welcoming S p a i n into the fold, I w a s p a r t i c u l a r l y encouraged both by the Helpful
note s t r u c k by the speeches of the chief delegates, i n c l u d i n g those of some countries
which m i g h t have been expected to be more reserved. T h e willingness of delegates
to waive lesser differences i n favour of speed a n d co-operation w a s also a most
satisfactory feature of the meeting.
8. I should like i n conclusion to express my a p p r e c i a t i o n of the valuable
services a g a i n rendered by S i r O. F r a n k s a t this m e e t i n g a n d also of the good
w o r k of those responsible for the p r e p a r a t i o n of the P a r i s meeting.
E. B.
Foreign Office, S. W. 1. 1st April, 1948. REPORT
A T the i n v i t a t i o n
countries p a r t i c i p a t i n g
on 15th M a r c h for a
Co-operation w i t h the
of M. B i d a u l t a n d myself the r e p r e s e n t a t i v e s of the sixteen
i n the E u r o p e a n Recovery P r o g r a m m e reassembled in P a r i s
short meeting of the Committee of E u r o p e a n Economic
following a g e n d a :—
(a) T o consider a n d approve the report by the S e c r e t a r y - G e n e r a l of the P a r i s
Conference on co-bperatioh between the p a r t i c i p a t i n g countries,
mentioned i n p a r a g r a p h 3 above.
(&) T o receive the r e p o r t s p r e p a r e d by the c h a i r m e n of the technical com­
mittees on the Commodity R e p o r t s tabled by the Uriitfed S t a t e s
Admihistratidn.
(c) T o constitute a n d frame terms of reference for a w o r k i n g p a r t y consisting
of representatives of the sixteen Governments.
2. H i s M a j e s t y ' s Government a n d the F r e n c h Government l a t e r invited the
member-countries to agree to the a d d i t i o n of a f u r t h e r item to the a g e n d a cdii­
cerning the p a r t i c i p a t i o n of the zones of occupation of W e s t e r n G e r m a n y i n
t h e w o r k of the C.E.E.C.
3. T h e Governments concerned all indicated t h e i r i n t e n t i o n of being repre­
sented by their F o r e i g n Ministers, w i t h the exception of S w i t z e r l a n d a n d Iceland.
I n the event fourteen F o r e i g n M i n i s t e r s assembled i n P a r i s a n d the M i n i s t e r i a l
meeting u n d e r my c h a i r m a n s h i p lasted two days. S i r Oliver F r a n k s , who acted as
C h a i r m a n of the Committee i n my absence a t the first m e e t i n g from. J u l y to
September, 1947, took the c h a i r a t meetings of the M i n i s t e r s ' A l t e r n a t e s both
d u r i n g the two days w h e n the F o r e i g n M i n i s t e r s were p r e s e n t a n d a t f u r t h e r
sessions on 17th a n d 18th M a r c h after the M i n i s t e r s h a d left P a r i s .
4. T h e agenda of the meeting, although not ldng, w a s of g r e a t importance.
Nevertheless the speed w i t h which the Conference reached agreement u p o n the
items to be discussed w a s most encouraging. A t i t s first session on 15th M a r c h
t h e Committee agreed to remit a study of the items on the a g e n d a to the Committee
of A l t e r n a t e s , which met later the same evening a n d a g a i n on the following
morning; They quickly reached agreement upon the final d r a f t of a r e p o r t on
the progress of E u r o p e a n Economic Co-operation; this r e p o r t w a s t r a n s m i t t e d by
t h e m to the P l e n a r y Meeting for adoption and transmission to the U n i t e d States
Government by myself as C h a i r m a n . The second P l e n a r y M e e t i n g a d o p t e d the
r e p o r t w i t h o u t discussion.
5. The A l t e r n a t e s f u r t h e r considered the comments of the Technical Cdm­
mittees w h i c h h a d been s t u d y i n g the U n i t e d S t a t e s Commodity R e p o r t s on food
a n d agriculture, fuel a n d power, i r o n a n d steel, i n l a n d a n d m a r i t i m e t r a n s p o r t
a n d timber. These reports were introduced by the C h a i r m e n of the respective
technical committees. I n the absence of the C h a i r m a n of the Technical Committee
on Food a n d A g r i c u l t u r e , the comments were introduced by M. Bbernia (Holland).
A f t e r a brief discussion in the Committee of A l t e r n a t e s they were f o r w a r d e d to
the P l e n a r y M e e t i n g w i t h a suggestion t h a t the P l e n a r y M e e t i n g should take
note of the comments by the Technical Committees, a n d should i n s t r u c t the
S e c r e t a r y - G e n e r a l to make these comments available to the p a r t i c i p a t i n g countries
a n d to the U n i t e d S t a t e s Government. A t the P l e n a r y M e e t i n g brief comments
w e r e m a d e by M. T s a l d a r i s , F o r e i g n M i n i s t e r of Greece, a n d M. Sadak, F o r e i g n
M i n i s t e r of T u r k e y , otherwise the comments w e r e not discussed a n d the P l e n a r y
M e e t i n g a d o p t e d the recommendation of the Committee of A l t e r n a t e s .
6. T h e P l e n a r y M e e t i n g f u r t h e r a d o p t e d a resolution on the p a r t i c i p a t i o n
of the Cbmbined U n i t e d S t a t e s - U n i t e d K i n g d o m Zone a n d t h e F r e n c h Zone of
G e r m a n y in the C o n t i n u i n g O r g a n i s a t i o n a n d i n the W o r k i n g P a r t y set u p to
s t u d y the establishment oif a C o n t i n u i n g O r g a n i s a t i o n ( A n n e x A). I n the
Committee of A l t e r n a t e s some slight difficulty h a d been caused by the fact t h a t
t h e two W e s t e r n a r e a s of G e r m a n y would have two votes so long as the F r e n c h
Zone w a s hot f u s e d w i t h the Combined U n i t e d S t a t e s - U n i t e d K i n g d o m Zone. T h i s
difficulty h a d however been overcome by agreement t h a t in p r i n c i p l e decisions
of the C o n t i n u i n g O r g a n i s a t i o n s should not be m a d e by v o t i n g b u t by a m u t u a l
agreement. F i n a l l y , the P l e n a r y M e e t i n g a d o p t e d the terms of reference of the
W o r k i n g P a r t y w h i c h is to study the establishment of the C o n t i n u i n g O r g a n i s a ­
t i o n ( A n n e x B).
7.. T h e A l t e r n a t e s met on 17th a n d 18th M a r c h a f t e r the F o r e i g n M i n i s t e r s
h a d left P a r i s to consider a d d i t i o n a l i n s t r u c t i o n s to the W o r k i n g P a r t y w i t h i n
t h e f r a m e w o r k of the terms of reference a d o p t e d by the P l e n a r y Meeting. The
Committee a g r e e d on a directive setting out in outline the purposes, a i m a n d
s t r u c t u r e of t h e C o n t i n u i n g O r g a n i s a t i o n , a n d calling upon the W o r k i n g P a r t y
tb p r e p a r e a d r a f t M u l t i l a t e r a l A g r e e m e n t on the basis of the P a r i s pledges
( A n n e x C). T h e P l e n a r y M e e t i n g agreed t h a t the progress r e p o r t oh E u r o p e a n
Economic Co-operatibh, the Resolution on Germany, a n d the terms of reference
of the W o r k i n g P a r t y should be made available to the P r e s s . T h e W o r k i n g
P a r t y meetings a r e to be held i n p r i v a t e a n d a f u r t h e r decision on publicity
w i l l be m a d e a t the n e x t meeting of the Committee of E u r o p e a n Economic
Co-operation.
ANNEX
A
RESOLUTION OF GERMANY
.
W H E R E A S the full co-operation of G e r m a n y i n t h e w o r k of the C o n t i n u i n g
O r g a n i s a t i o n is essential to E u r o p e a n Economic recovery;
T h e Committee recommends t h a t : —
(i) I n d e f a u l t of the economic u n i t y of G e r m a n y , the Combined ( U n i t e d
S t a t e s - U n i t e d K i n g d o m ) Zone a n d the F r e n c h Zone should each be
r e g a r d e d as a n i n d e p e n d e n t p a r t i c i p a t i n g area.
(ii) E a c h of those two areas should be a s i g n a t o r y of the proposed m u l t i l a t e r a l
agreement.
(iiij T h e t w o a r e a s should each p a r t i c i p a t e fully i n the activities of the
C o n t i n u i n g O r g a n i s a t i o n , including, w h e r e a p p r o p r i a t e , the work of
a n y Committees or other bodies which may be set u p to c a r r y out the
objects of the E u r o p e a n Recovery P r o g r a m m e .
(iv) I n t e r - g o v e r n m e n t a l agreements r e l a t i n g to the E u r o p e a n Recovery
P r o g r a m m e should be signed in respect of each a r e a by or on behalf
of the occupation a u t h o r i t i e s i n t h a t area.
(v) E a c h Of t h e t w o a r e a s should be represented on inter-governmental bodies
established for E u r o p e a n Recovery P r o g r a m m e purposes by representa­
tives of the occupation a u t h o r i t i e s w i t h a p p r o p r i a t e officials.
(vi) T h e same method of r e p r e s e n t a t i o n shall be a d o p t e d for the w o r k i n g
p a r t y w h i c h it is proposed to set u p .
ANNEX B
-RESOLUTION BY C . E . E . C .
Terms of Reference
of Working
Party
I
I T is agreed t h a t a W o r k i n g P a r t y consisting of representatives of all the
p a r t i c i p a t i n g countries be set u p f o r t h w i t h w i t h t h e following t e r m s of
reference:—
(a) To submit proposals to the next conference of C.E.E.C. as to the purpose,
functions a n d o r g a n i s a t i o n of the new body. Such proposals to be
of as comprehensive a n d detailed a c h a r a c t e r as is possible.
(b) To p r e p a r e a d r a f t m u l t i l a t e r a l agreement for submission to t h e n e x t
conference of C.E.E.C.
(c) To p r e p a r e for t h e n e x t conference of C.E.E.C.
II
I n the l i g h t of the above terms of reference, the A l t e r n a t e s a r e requested to
consider the a d d i t i o n of such e x p l a n a t i o n s a n d g u i d a n c e as they t h i n k necessary
to assist the W o r k i n g P a r t y .
Ill
T h e task of the W o r k i n g P a r t y is defined above. T h e C.E.E.C. wish to lay
down t h a t the W o r k i n g P a r t y shall in p u r s u a n c e thereof give no publicity to
t h e i r deliberations. They f u r t h e r d r a w the a t t e n t i o n of the W o r k i n g P a r t y to
the desirability of c a r r y i n g out t h e i r task w i t h all necessary discretion.
Paris, 16th March, 1 9 4 8
ANNEX C
INSTRUCTIONS FOR THE WORKING P A R T Y PREPARING FOR THE CONTINUING
ORGANISATION AGREED AT THE M E E T I N G OF ALTERNATES HELD ON THURSDAY,
1 8 T H MARCH, 1 9 4 8 , AT 1 1 A.M.
T H E purposes of the Organisation, on which the W o r k i n g P a r t y is to m a k e
recommendations, are economic.
2. I t s a i m will be to promote and facilitate the realisation of the economic
co-operation of E u r o p e , w i t h the immediate task of e n s u r i n g the success of the
E u r o p e a n Recovery P r o g r a m m e , , so t h a t P a r t i c i p a t i n g Countries may -become
i n d e p e n d e n t of e x t r a o r d i n a r y outside economic assistance as soon as possible.
3. The O r g a n i s a t i o n shall consist of an assembly of representatives of all
the P a r t i c i p a t i n g Countries. T h i s assembly shall be the body from w h i c h all
decisions derive.
4 . The assembly shall set u p o r g a n s for the execution of i t s ' decisions, in­
c l u d i n g a n Executive Committee and a General S e c r e t a r i a t . T h e SecretaryG e n e r a l will be under the general i n s t r u c t i o n s of the assembly, w h e t h e r
communicated directly or by means of t h e executive committee.
5. The general business of the organisation shall be t r a n s a c t e d by decisions
r e s t i n g on m u t u a l agreement.
6. Subject to acceptance of i t s a p p l i c a t i o n by the assembly, membership
shall be open to any. country which adheres to the j o i n t p r o g r a m m e for E u r o p e a n
recovery based on self-help a n d m u t u a l co-operation.
7. A d r a f t m u l t i l a t e r a l agreement shall be d r a w n u p i n conformity w i t h
the declaration a n d pledges of the C.E.E.C. a n d other relevant documents.