Foreign Relations of the United States, 1948, Western Europe, Volume III

840.50 Recovery/2–2948: Telegram

The Secretary of State to the Embassy in the United Kingdom

secret

Washington , February 29, 1948—2 p. m.

695. For Ambassador. Following are Dept’s present views structure and function continuing CEEC organization. Please comment.

1. Pressure of time and circumstances and necessity to avoid pipeline breaks make it impossible for continuing organization to play much role in relation to US supply program for quarter Apr–June 1948. This matter will have to be handled with participating countries individually. Organization should, however, be able to deal with program for period beginning July 1.

2. Continuing organization should be built on principle of a council of national reps of standing who would not need to meet frequently plus a strong and active secretariat under a leading figure. Secretariat should be financed by independent budget contributed by participating countries. US would not be member but special rep in Europe would keep close contact. Bizone Germany and French Zone, as participating countries, would be members of organization. Powers of organization would be recommendatory in form. A principal responsibility would be to promote and encourage cooperative action and mutual aid aspects of ERP as well as to check on performance of mutual pledges.

3. Most of the operations of the organization would be carried out through the Secretariat which would (a) assure collection of information (including right to visit and inspect) and circulation of appropriate progress reports particularly under country production targets and other agreed action (such as financial reform); (b) calling together groups of technical experts when desirable to deal with specific matters along lines of technical committees of CEEC Paris Meeting; (c) suggesting meetings of two or more countries to handle matters affecting them but not of concern to all; (d) maintaining contact with ECE Secretariat; (e) preparing agenda and work of full CEEC meetings; (f) maintaining continuous contact with US special rep; (g) collecting and disseminating information about cooperative action and mutual aid among participating countries.

4. As soon as and to the extent practicable, continuing organization should assume responsibility for review and comment of participating country programs including their import programs. Although it may be necessary for US missions to discuss with individual countries on a continuing basis their needs from the US, we desire to keep bilateral negotiations to minimum and our objective would be to have import programs including imports from US reviewed by continuing organization and subject of recommendations by organization so as to assure that the fullest use is being made of resources and potentialities of participating countries and that requirements for US aid constitute assistance really needed and will go to destination where greatest recovery effect for benefit of all would be achieved. Such review could include recommendations as to cases when offshore procurement by US in participating countries would improve use of European resources. The bulk of this work should be done by Secretariat who could call on experts or committees of experts from participating countries for assistance. This work should not overlap effective work which may be done by existing organizations such as IEFC, ECE Coal and Transport Committee, etc.

5. While location of organization, chairman and personnel in secretariat are matters peculiarly for European decision and Dept would not wish to make suggestions, there appear to be considerations favoring Brussels or some city other than London and Paris as headquarters and Spaak¹ would seem eminently qualified for chairman. Highest calibre secretariat is essential.

6. Organization charter should provide for addition of new members (e.g. Trieste) and for withdrawal and exclusion. Since participating countries are apt to concentrate on their own individual problems, organization should concentrate on promoting cooperative action and creating closer relationships between members.

Marshall

1. Paul-Henri Spaak, Belgian Prime Minister and Minister of Foreign Affairs.