MEETING CALLED BY THE HIGH AUTHORITY OF THE CSC TO DISCUSS THE ESTABLISHMENT OF BUFFER COAL STOCKS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-02771R000100150005-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: April 17, 2000
• Sequence Number: 5
• Content Type: AIRPOUCH

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US PI-p S1J fT ' 5 9 US MT3SICtJ Td
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The Department of State, :ashington
NO- COLUX D-44
Poucheda Born, Bruesols, gue,,London,Luxembourg,Paris,
WS O..UX D-11 of July 209 1956
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Subjects Meeting called by the High Authority of the CSC to discuss the
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li.ss-gent of buffer coal stocks
The La Authority has invited the G X n tuber overnnnerxts a: nd coal producers
of the Community to a meeting in the first part of October to discuss coal stockage
problems. The objectives of the Nigh Authority are to stabilize production and
eaaiplo in xit daring periods of market recession by stimulation of coal stock ac-
cumul.atian during such periods. As pointed out In the letter of invitation to the
meeting,, the market dip in 1954 resulted in the loss of 3,5 million tons of coal
production to the G&C economy and the loss of large amounts of wages to coal miners,
The following topics have been proposed for discussion with the coal pro..
dueaar groups at the meeting:
1) Procedures for establishing an inventory of existing stockkgr areas
as well sa requirements for additional areas which would be c ,l.led into use to
serve the needs of the Community during periods of low consumer demand.
2) Tnvestment requirements for the expanded stock a areas,
3) Speciral bonuses for consume :-s who wou;?.d conclude long term contraacts
4) The possibility of more flexible pricing policies to provide incentives
for continued purchase daring periods of low market demand.
With the governmental. repre;; nt-.:tives present,, the High Authority proposes
to discuss governmental policies which would facilitate more satisfactory stockage
practices Sand in parti.r_u7_a.r:
rx
ass the costs of stocky ;eo react team tesnding
diminution or eliniination of successive layers of i
di
2) To take account for taxation purposes of stuckage costs including the
ins of the qualit
of th
l
y
e cora
under prolonged periods of storage,
lq The present Suez crisis is unconnected with the Original purposes of
this meeting, but will undoubtedly be brought into the discussion as an additional,
aurgument for .more adequate attention to the entire
o4k,-ige problem.
JHk ynetraw OFi1c..AD USE
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L44 smbourg
high priority on the consideration of this "in
2e The Ili& Authority has P
based on the belief as ezpl wined in the V'ference despatch that large
problem problem is insoluble from the production side" but that a ,siesnsible
coal p de ed bal~nce*
of 1heucupP(M and Stockage prc~ialems, however#
bautuffer the stock poke y could greatly iVrOve
French coal producer groups who feel
evaluation of the relativeport:'nce prodti
t i oned in some circles 9 notably ad
has been ques sioxt of coat production shou now be receiving
that egarbte~ incentives for expan L sine H2~ L lle prominent French in-
that
attention devoted to ,coal ?ok?ge' 8 yp/,ack on the cods. policy
:Austr' weeklys, in its issue of September aI
the High authority with the fo1lowi paragra~Pht
that the High Authority believes it more
'In the iennediate future9 it is true and its financing rte' the Proasm
necemtsary to cflrsider the Problem of stockaga
Of production expansiOr o Never without doubt was it more 'wrongo"
W. Walton Butterworth
United States Representative
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20 The High Authority has put a high priority. rug the consideration of this
problem based on the belief as explained in the reference despatch that "in large
part the coal problem is insoluble from the production side" but that a sensible
buffer stock policy could greatly improve the supply demand bal,:nceo This
evaluation of the relative importance of production and stockage problems, how ver,
has been questioned in some circleso notably by French coal producer groups
that a equ to incentives for expansion of coal production should now be receiving
the attention devoted to coal stockageo Maine Nou a prominent French in,
, try weeklyp in its issue of September %,'19-56 sums up ack on the coal policy
At the High Authority with the following paragr'apha
?in the immediate futures it is true that the High Authority believes it more
necessary to consider the problem of stockage and its financing ohan the problem
of production expaneionoa Never without doubt was it more wrcngo"
W. Walton lutterwortb
United .States Representative
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