740.5/2–2651: Telegram
The United States Deputy Representative on the North Atlantic Council (Spofford) to the Secretary of State 1
Depto 560. Deputies 13th meeting February 26.
[Here follows a reference to the adoption with minor revisions of a resolution authorizing the Chairman to set up an international staff for NATO civilian agencies and a summary of preliminary discussion of a proposed “information conference” on the subject of Soviet aggression or imperialism and the defensive nature of the North Atlantic Treaty Organization.]
3. French deputy asked meeting continue past usual hour to hear important statement on behalf his Prime Minister. He cited NATO [Page 67] progress in short period but called attention to repeated warnings of growing economic disequilibrium which French now consider critical. Skyrocketing raw material prices were reducing western standards of living, tending toward new economic and social troubles, causing payments difficulties (Netherlands and Germany) in EPU, interfering with integration and making rearmament more costly and difficult. Continued degeneration might have economic and social consequences which could defeat purposes of defense program.
His Government did not know answer but felt US steps under Wilson directives2 along right line. Asking who had responsibility for maintenance international equilibrium, he answered individual governments, Washington raw material groups and OEEC each had responsibilities for some aspects but that dangerous gaps remained. Our twelve governments must deal collectively with this problem, to which Article 2 of treaty particularly applicable. Reiterating answer would be difficult to find, he urged deputies seize themselves of problem, keep informed of national and international steps and take initiative in seeking to plug existing gaps.
Italian deputy, obviously forwarned, supported French position fully. Canada and Netherlands deputies also expressed general support.
Résumé French statement to be circulated tomorrow. CD will meet for clarifying discussion tomorrow and for full consideration later this week or beginning next.
- Repeated to Paris for the Embassy, Schuyler, MacArthur, and OSR and to the capitals of the other NATO countries; also to Frankfurt, to Heidelberg for Handy, and to Wiesbaden for Norstad.↩
- The reference here is presumably to action taken by the Director of Defense Mobilization, Wilson, which led to the announcement on February 26 in Washington, London, and Paris of the creation in Washington of a new organization for international cooperation in the field of consumption and production of essential materials under the name of the International Materials Conference. The conference was to consist of a series of separate International Commodity Committees, the first of which was concerned with copper, zinc, and lead and was meeting on the same date, February 26.↩