134. Memorandum of a Conversation, Department of State, Washington, March 10, 1960, 3:45 p.m.1
SUBJECT
- Israeli Association with European Economic Groupings
[Here follows the same list of participants as Document 132.]
Prime Minister Ben-Gurion raised the possibility of Israel’s being associated in some way with economic groupings currently being developed in Europe. He thought such groupings highly desirable and also favorable to the cause of peace. He noted that special arrangements are being worked out for Greece and Turkey.
The Under Secretary reviewed recent developments on this subject. He noted we had taken some initiatives toward bringing together two rival economic groups in Europe. They were now at least talking to each other.
The Under Secretary said we had felt that these economic moves in concentrating on intra-European areas had been tending to lose sight of larger objectives. The result tended toward discrimination against outsiders including us. Our efforts had been directed not only toward developing useful arrangements between the European states, such as between France and Germany, but also toward getting the European countries to take into consideration the economic interests of countries elsewhere in the world. He thought that a committee meeting in January of OEEC countries plus the U.S. and Canada had been a hopeful development. Also hopeful was the agreement at that meeting that the Secretary General of GATT would be a full member, representing the interests of all GATT countries.
The Under Secretary emphasized our hope for progress away from special areas within Europe. We hoped that our efforts would benefit not only us but all countries outside Europe including Israel. As for Israel becoming a member of a “bigger Europe” we doubted that was in sight. Greece and Turkey had been members of OEEC since the beginning and both were members of NATO. Neither the U.S. nor Canada were asking to be members of a European trading group. The countries directly concerned in these groupings would have responsibility for deciding upon memberships.
The Under Secretary expressed the belief that a peaceful settlement in the Middle East would have considerable bearing on Israel’s hopes for increased trade in Europe. As long as the Arab-Israel problem [Page 294] exists, he said, European countries will tend to be fearful of developing special ties with Israel at the expense of trade ties with the other countries in the Middle East.
The Prime Minister concluded the discussion of this subject by stressing what he considered to be the great importance of close economic collaboration between Europe and Africa. The emphasis should be that of self-help from equals in which Israel could play a useful role. This was a matter of great political importance, he said.
- Source: Department of State, Central Files, 374.800/3–1060. Secret. Drafted by Meyer and approved by U on March 11. See also Document 132, supra, and infra.↩