(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01634R000100140028-6
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: November 17, 2016
• Document Release Date: September 25, 1998
• Sequence Number: 28
• Publication Date: January 29, 1959
• Content Type: TELEGRAM

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INCOMING TELEGqM Department or Nate
57-L
Action
Info FROM: Luxembourg
- 00-0111111-0-
Classification Control: 17212
Rec'd: January 29, 1959
6:54 p.m.
RMR TO: Secretary of State
SS NO: COLUX 151, January 29, 8 p.m.
W
G
SP PRIORITY
C
L SENT DEPARTMENT COLUX 151, BRUSSELS COLUX.31, BONN COLUX 41,
INR THE HAGUE COLUX 27, LONDON 30, PARIS COLUX 61, ROME COLUX 29,
H GENEVA 29
E
IRC BRUSSELS ALSO USEC
DCL
CIA
PARIS ALSO USRO
In explaining.I.decision establish 5 million ton duty-free
import level for GermanySpierenburg made certain points in
addition those sent (#) .
1. In view German Parliamentary debates schedule for today, HA
decision to counter German action had to be taken immediately
or not at all. While HA considered merits of awaiting results
of industry consultations in US and possibility of discussions
with US in advance of decision, it became evident that any
postponement at this point would mean de facto concurrence in
German measure. Furthermore HA had had to take into account
there was no assurance whatsoever of US willingness to negotiate
if HA action had been postponed.
2. It was of vital importance to ECSC and to European integration
that HA should take measures currently necessary in a community
framework, rather than admit independent action by a member
state of type seriously detracting.from:its authority.
3. Decision was very difficult for HA to take in view fact that
Adenauer, a staunch supporter of ECSC and European integration,
had invoked his personal influence and prestige to rally support
for German rest=rictions and had protested by telegram in his
REPRODUCTION FROM THIS
own name
COPY IS PROHIBITED.
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-2- COLUX 151, January 29, 8 p.m., from Luxembourg
own name to HA communique which foreshadowed present action.
4. Although he recognized LS would probably be disappointed
in figure which the HA was setting, he personally was firmly
persuaded this was the best that could be arrived at. Only
possible alternatives given differing views HA members were
to set a lower figure, to concur in German action, or to take
no action, any one of which would have given results'. less
satisfactory to US, Failure to take action re imports into
Germany at this point would have meant further deterioration
in coal situation leading rapidly to community-wide import
restrictions under Article 58 and 74, which he considered would
also be less acceptable to US. Political consequences for
European institutions of these alternatives would have been
heavily unfavorable.
5, Although it had not been possible to delay HA decision,
.HA was still prepared discuss coal situation with US if this
.was desired. In answer to our inquiry Balladore subsequently
stated HA had nothing concrete to propose in this regard and
should not be, interpreted as taking an initiative to convene
such discussions. Only bare possibility of flexibility at
present time he could see in 5 million figure was tfyylt* again
to strong reaction to German measures on part of US Executive
branch, Congress, labor, coal management and railroads; noted
we had informed Washington of political context in which HA
was acting and would of course communicate additional points
that Spierenburg had made; stated that while we could not anti-
cipate what position US Government would take, there was bound
to be disappointment that HA had not set a higher duty-free
figure. When pressed on meaning of reference to possibility of
changing duty-free import level with changing circumstances,
Spierenburg confirmed, with Wehrer's concurrence, that this
meant that figure would be raised if German coal consumption
increased. (Mission will send separately analysis of HA calcu-
lations and assumptions on which duty-free figure-established.)
When queried re US component of 5 million total figure, Spierenburg
said this had not been established but referred to principle of
non-discrimination among exporters on which HA insisted. Balladore
stated that HA acting under Article 74 paragraph:'3 to make
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-3- COLUX 151, January 29, 8 p.m., from Luxembourg
recommendation to Federal Government, which under treaty would
be binding with respect to objectives but leave to Federal
Government choice of appropriate means for their attainment. He
.said that division of duty-free quotas might accordingly be left
to German Government. He thought it reasonable to assume
however that share of US exporters in the increase (#) would be
at least proportional to that contemplated by Federal Republic
in its original announcement. Vinck, Market Division co-Director,
later estimated probably US portion of quata at around 4 million
tons and British portion at around 400,000 tons.
In several cases above comments refer to previous meeting with
Spierenburg on Tuesday, following receipt LUXCO 176, sent Bonn
1619. At that time Spierenburg was handed note containing copy
of the presentations in paragraph 2 that telegram and was informed
of other Department views contained that telegram to extent
considered appropriate, including paragraph 4 C. He was also
pressed in any event not to retreat from higher import figures
for Germany which HA had previously favored.
At that time, Spierenburg again stressed political importance he
attributed to counteraction by HA. He said that while he person-
ally favored higher level of duty-free imports, it was uncertain
whether he could get HA majority to oppose German action on any
basis, and that figures 4.5-5 million which he had previously
mentioned (COLUX 145) were highest that seemed at all possible
of acceptance.
JAC/6
(#) Omissions. Corrections to follow.
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