CAB129-37 — Page 32

ANNEX B

17

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COPY OF TELEGRAM SENT TO H.M. AMBASSADOR. WASHINGTON, ON 25TH OCTOBER

A series of meetings begins in Paris this week of the Consultative Group of O.E.E.C., the Ministerial Council of O.E.E.C., the Council of Ministers (European Assembly) and the Consultative Council of the Brussels Treaty. At all of these meetings the question of European economic collaboration will come up in one form or another, the Belgian Government having put Article 1 of the Treaty of Brussels on the agenda of the Consultative Council of the Brussels Treaty.

2.

At these meetings pressures are likely to develop for further steps towards 'unification' of Western Europe. There is reason to believe that the proposals for a greater Benelux and other ideas for closer economic union in Europe, which have been canvassed without consultation with the United Kingdom, have not been making progress. There may be a realisation that progress cannot be made without United Kingdom support.

3.

E.C.A. appear ready, in order to meet their Congressional difficulties, to sponsor any scheme which can be represented as progress towards unification without much regard to merits. There is strong pressure within the European Assembly for integration, and though it may be doubted how far the Continental governments would go towards union whon it came to the point, they are likely to favour schemes for this in principle and to be ready to throw the blame for any lack of success on the United Kingdom. There remain some rather strong feelings on the Continent, excited by our devaluation, and we cannot exclude the possibility that certain members of E.C.A. and the Office of the United States special representative (0.S.R.) will, in their anxiety to get something done, join in the pressure upon us, even though this may not represent eithor the policy of E.C.A. itself or of the United States Administration. On this I accept the view set out in your telegram No. 4890 which I found very helpful.

4.

In these circumstances I think it is necessary to ensure that the United States Secretary of State should be informed of the attitude which the Chancellor of the Exchequer and I have decided to recommend to the Cabinet for adoption at the forth- coming meetings in Paris and the reasons for it. The following paragraphs set out this attitude and I should be grateful if you would convey them in the form of a personal message to Mr. Acheson, You should tell him that we have not yet been able to show this message to the full Cabinet. I expect these matters to come before the Cabinet on Thursday and, if there is any change of substance, I will let you know. You have discretion to vary the language of this communication in any way which seems to you desirable.

5.

Begins: In preparation for the forthcoming meeting in Paris of O.E.E.C. Council of Ministers, the European Assembly and the Consultative Council of the Brussels Treaty, His Majesty's Government have reviewed their general attitude

towards proposals for closer European union or unification which may be put forward.

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