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December 9, 2016
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April 17, 2000
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Fu TGL SE? CE D. PA 0,11 Tot ed For Release 2001/07/28: CMUMIM010015 005-7 US PI-p S1J fT ' 5 9 US MT3SICtJ Td Fcs;a L coon 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 r- 'le- "-W" *40I.,# no er& a as ttrtals Td s e $ . o GA ieta / Subjects Meeting called by the High Authority of the CSC to discuss the b t a es 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 Approved For Release 2001/07/28 :UT UV1U-u2 00100150005-7 State Dept. declassification & release instructions on file OFFTOTAL UsE flNNLY p Approved For Release 2001/ 2771R0001 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 ____ AL USE ONLY Approved For Release 2001/07/28 : CIA-RDP78-02771R000100150005-7 Approved For Release 2001/ - Mt-2771 ROOO 1 MUMMY* From US Mission to B Luxembourg 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 ?FF7CIAL U ONLY Approved For Release 2001/07/28 : CIA-RDP78-02771R000100150005-7