840.50/10–2744: Telegram

The Chargé in the United Kingdom (Gallman) to the Secretary of State

9263. 1. As a result of current experience and difficulties in getting agreement on formation of EITO,32 Ministry of Fuel and Power has unofficially advised MEA33 that British authorities feel it inadvisable to go forward with the original plan to establish ECO,34 which was [Page 629] to make joint UK–US approach to Russia and then to other countries to secure agreement in principle. New plan now being considered is to await agreement on EEC,35 and then raise ECO as first problem to be considered by EEC. This will avoid a separate approach on coal with possible attendant difficulties. If EEC bogs down or is unduly delayed then an alternative approach on coal will need to be considered. In view of Department’s aide-mémoire to British of September 27 which takes somewhat similar line we have indicated that we are inclined to agree with this approach on coal but that we await your views. Hope EEC will be agreed within next few weeks so that coal organization can be proposed in principle within month or 6 weeks.

2. In view of foregoing feel little would be gained by having Potter36 come here at this time for detailed discussion on ECO. Meanwhile it is important that detailed United States proposals regarding composition, nature and function of proposed coal organization be considered there so that Potter would be fully briefed when detailed negotiations begin. View taken by United States side of Washington Coal Committee that United States should act only as observer on ECO for example not fully understood here. We did not contemplate that ECO have sovereign powers or decide matters by vote but will act more like the Combined Coal Committees namely as coordinating and information clearance and advisory body. British think ECO may eventually need somewhat wider powers but at the outset the problem is to secure a body which can seek out information and give consideration to problems which will arise.

3. Reed37 has already discussed foregoing by phone with Eaton.38 Please advise Eaton and FEA39 this cable.

Gallman
  1. European Inland Transport Organization.
  2. Mission for Economic Affairs, American Embassy, London.
  3. European Coal Organization.
  4. European Economic Committee.
  5. C. J. Potter, Deputy Solid Fuels Administrator.
  6. Philip D. Reed, Chief of Mission for Economic Affairs, American Embassy, London.
  7. Frederick M. Eaton, Solicitor, War Production Board; deputy member, Combined Production and Resources Board.
  8. Foreign Economic Administration.