1. Robertson met with Makins, Jessup and Alphand this morning to learn the status of the Three Power discussions of "development of long term economic relations between North America and Europe²⁸ The question had been put on the tripartite agenda by the French, who were anxious to plan now for a continuing association in the economic and financial fields between the countries of Western Europe and North America which could carry on after the ECA programme had come to an end.

2. The French had in mind some form of external association between the OEEC countries on the one hand and the United States and Canada on the other, which would enable the North American countries to take part in the Working Committees and the Council of OEEC and use these existing agencies for the continuing study of relations between dollar and non dollar economies. Alphand explained that they had initially explored the possibility of setting up an agency for this purpose under the aegis of Article 229 of the North Atlantic Treaty, but to this they saw two objections, each, for the time being at least, very formidable. It would be unrealistic for the countries of Western Europe to address themselves to the problems of dollar non dollar relationships without the cooperation of Germany and the other "neutral" countries which were not parties to the North Atlantic Pact. At the same time France was not at present prepared to have Germany brought within the circle of the North Atlantic Treaty countries. In the second place, they were very much opposed to the establishment of any new functions of existing agencies. OEEC was already, though perhaps from a limiting point of view, concerned with many aspects of the economic and financial relationships between the countries of Western Europe and those of North America. It would, he thought, be wise so far as Europe was concerned to build on this firm foundation and use the existing OEEC organization as the European counterpart of their trans Atlantic partners in studying the problems of commercial and economic policy which derive from the dollar gap.

3. As Makins explained it, the United Kingdom response to this French initiative up to now has been sympathetic but cautious. They did not exclude the possibility of Germany and the other neutrals being associated with economic and social arrangements that might be undertaken under the North Atlantic Pact at an earlier date than the French were now prepared to contemplate. They were not, however, pressing the French at this time to alter their attitude toward German participation, but were not very happy about fixing now what might turn out to be the basic pattern for cooperation in economic policies between the countries of Europe and the countries of North America, and they fear that if OEEC were to be the agent and representative of the European countries in these studies, which they wish to see made, it would crystallize the post ECA position in a form which they are not yet ready to accept.

4. Jessup said that the United States administration had in preparation a really great effort over the next twelve to eighteen months to bring home to Congress and the American people all the implications of the creditor position of the United States in the context of the present world situation. They were determined to make a great and urgent effort to see that the United States for its part would do everything possible to narrow the dollar gap from its side. It would, however, be politically impossible for them to get the response they hope for from their own people if they should appear to be working alone towards this objective. They hoped they could count on full co operation from Canada, and they also felt they needed some new evidence that the countries of Western Europe were equally mindful of the dangers which lay ahead if long term economic relationships between North America and Europe were not put on a stable and mutually satisfactory footing. They were not as concerned as the English or the French about the kind of machinery that might be used for this new effort. Their preoccupation was with the substantive problems and their hope was that in some way our four countries could get together now to initiate a new and serious attack. Jessup was inclined to think that the present association of the United States with OEEC countries, both by its bilateral agreements with each of them and by its intimate and informal participation in the workings of OEEC itself, was probably adequate. If some way could be found for giving Canada a similar, though perhaps less formal, association with OEEC which would enable us to take part as principals in a new examination of what could be done to mitigate the difficulties which now beset trade and financial relationships between the dollar and non dollar countries, this would be a real help.

5. The foregoing paragraphs summarize fairly accurately the attitude of the three principal countries as they have developed during fairly desultory discussions in London during the past ten days. All are anxious to reach some preliminary conclusions this week which might take the form either of a single four Power declaration, or perhaps, though this is less likely, of a statement by Mr. Acheson, with which Mr. Perason could be associated, with a suitable statement in response from Bevin and Schuman, who would in either case commend to their colleagues in OEEC the suggestion that Canada be associated with the OEEC countries in a new study of what could be done to solve our international economic problems.

6. We are to have a further meeting with the same group tomorrow morning at eleven, for further examination of the implications of the various suggestions which have been put forward, and would be very glad to have your preliminary comments as soon as possible.²⁹

²⁸ Pour un résumé complet de ces entretiens, voir le document 499.
For a full report on these discussions, see also Document 499.

²⁹ En vertu de l'article 2 du Traité de l'Atlantique Nord, les parties doivent renforcer leurs institutions politiques libres et harmoniser leurs relations économiques internationales afin de favoriser la stabilité et le bien être.
Article 2 of the North Atlantic Treaty commits the parties to strengthening their free political institutions and to harmonizing their international economic relations in order to promote stability and well being.