EUROPEAN COMMUNITY INCHES TOWARD MORE POLITICAL UNITY

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CIA-RDP85T00875R001100100131-0
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November 15, 1971
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Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 DIRECTORATE OF INTELLIGENCE Intelligence Memorandum European Community Inches Toward More'oliriical Unity Secret 73 15 November 1971 -No. 2095/71 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SECRET CENTRAL INTELLIGENCE AGENCY Directorate of Intelligence 15 November 1971 INTELLIGENCE MEMORANDUM European Community Inches Toward More Political Unity Summary The European Community has now had about i -,-ear's experience with a system of consultations on foreign policy agreed to by the chiefs of government -t The. Hague in December 1969. The results have not been spectacular. This was perhaps to be expected given the timid approach of the Six to the question of the institutions required. Only the prospect of British participation persuaded some of the Six to agree to such consultations, and there is still a strong "waiting-for-London" atmosphere surrounding the issue. For some time to come the impact of the community in world affairs will derive more from its collective economic weight than from the nascent "coordination" of foreign policies. Nevertheless, the Six have an established rou- tine of regular and frequent meetings on foreign policy. Their representative, in other countries are acquiring the habit of mutual consultation. The consultation framework is being used more and more on an ad hoc basis to discuss timely issues. On the other han~Tc., there is no permanent support- ing organization, and it is generally recognized that the consultation process also suffers from tenuous links to public opinion and parliamentary procedures. These questions are now part of a more general debate taking place in the press, the vari- ous "European" lobbying groups, and th-a European Note: This memorandum was prepared by the Office of Current Intelligence and coordinated within CIA. SECRET 25X1 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SECRET 25X1 Parliament over how to reinforce the institutions of the entire European integration movement. In- terest in Europe's future political organization is certain to become livelier with signature of a UK accession treaty later this year and a summit meeting of the present and prospective members likely soon thereafter. Indeed, the coincidence of the community's en- largement, movement toward East-West detente, and efforts to forge a united response to recent US eco- nomic measures suggests to many the need for a de- cision-making procedure on political matters. Prime Minister Heath--at the Zurich ceremony in September commemorating Churchill's 1946 "United States of Europe" speech--called for a common European for- eign policy, for defense cooperation, and for demo- cratically based institutions. Britain will pre- sumably attempt to further these goals in the en- larged community. Their achievements will. depend on how some basic questions are answered: How rapidly should integration entail sacrifices of national sovereignty? What axe the advantages of detente in relation to West European unity? How compatible is a "European identity" in political and defense mat- ters with reliance on the US as the ultimate security guarantor? 25X1 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SFCR FT Introduction 1. The Hague summit meeting of the Sax at the and of 1969 set the stage for negotiations to en- large the mQmbership of the European. Communities. It also opened the way for "progress in the matter of political unification, within the context of en- largement." The linkage between the two issues was not fortuitous. An earlier attempt at political unification among the Six, by the so-called Fouchet Committee set up by the Bonn Declaration of July 1961, had failed. France's partrers were unwill- ing to accept an arrangement which, in the absence of the British, would have effectively confirmed the predominant political role of Paris. They also feared that the EEC, EURATOM, and the Coal and Steel Community might be undercut. 2. The prospect of the community's enlarge- ment has now enabled the Six to avoid repeating the doctrinal disputes of the Fouchet area. Because of the growing influence which the community is assuming globally they have found it advisable to abandon the old forensics and instead to try to raise the level of their political responsibility to match that of their de facto power. It is evident that in jointly taking up such problems as the Middle East, East- West relations in Europe, or the Mediterranean, the Six are aware both of the implications of develop- ments in these areas for the community as a whole and of the potential for common action. 3. Although the national interests of the mem- bers will Lend to diverge for an indefinite period, this may give them more re--tson to seek a forum where each can influence the others. Also, trade and eco- nomic matters--as in the case of EC-US relations-- clearly have political consequences that are out- side the three communities' competence, and call for general political debate. Consultations on Foreign Policy 4. Following the Hague summit, a group of senior officials from the Six met under the chairmanship of Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 25X1 Etienne Davignon, Director General for Political Af- fairs at the Belgian Foreign Ministry, to draw up a report for the foreign ministers in implementation of the Hague decisions. The report was finally adopted in October 1970. Its stated goals: to "as- sure-better mutual comprehension on the major prob- lems of international politics" and to promote the "harmonization of points of view, the concerting of attitudes and, when it seems possible and desirable, common actions." 5. Meetings of foreign ministers (or chiefs of state under extraordinary circumstances) are scheduled every six months. Preparations for these sessions are entrusted to a committee of foreign office directors for political affairs, which meets at least quarterly and which can establish expert working groups on particular problems. In addition, ambassadors of the Six accredited outside the com- munity are invited to consult among themselves on problems of common interest. 6. The role of the EC Commission in these consultations is vague. Its opinion is invited when the consultations touch on activities of the communities. An Informal meeting of the foreign ministers with members of the political committee of the European Parliament is called for twice a year. The EC Council president r~ports to the Par- liament once a year on the progress rchieved in unification. Finally the foreign ministers are to prepare a general report, by November 1972, evaluating the results of their efforts. 7. Britain and the other candidate countries for EC membership do not participate in the meetings of the Six. They are provided "information that is likely to interest them" on the consultation,, of the directors' political committee. Following ministe- rial-level meetings, the four applicants are -told of the results of the deliberations. Working procedures have developed along the following lines. Once the ministers have agreed on certain topic:: for discus- sion, the political directors decide on the terms of 25X1 SECRET Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 O'CIR FT reference and assign varionns aspects of the problem to particular countries. Initial country papers are then discussed within a working group of experts drawn from the respective foreign offices. The po- litical directors either accept the papers or send them back to the experts to iron out remaining dif- ferences. The ministers have discretion to give the studies whatever degree of official sanction they deem appropriate. The Middle East 8. The Six have thus far dealt with two for- eign policy problems in some depth, the Middle East and a Conference on European Security. The Arab- Israeli dispute in Middle East caused the greater controversy. It was obvious from the beginning that there were serious differences between France, on the one hand, and the other five, in varying degrees, on the other. The latter were particularly concerned not to leave an impression that France wo.ld receive a mandate to speak for them in the Four Po,ier talks in New York. Nevertheless, the Six felt they could not shirk discussion of one of the more burning policy issues and one on which the Europeans themselves have long felt they were remiss in not asserting Europe's interests "with one voice." 9. Because of known differences, the Six de- liberately excluded from the initial phase of con- sultations several of the touchiest topics. These included the question of Israel's withdrawal from occupied territory, its final boundaries, and pro- cedures for establishing peace. At the Munich meet- ing of foreign ministers in November 1970, the Six agreed to discuss four issues: freedom of naviga- tion of the Suez,.demilitarized zones, Jerusalem, and the Palestinian refugees. Basic differences emerged between France and its partners. The French were by far the most sympathetic to the Arab side and eager to impose a settlement, This led to much pulling and hauling over language that threatened to go beyond the UN Security Council's Resolution 242. Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SECRET 25X1 10. By last March the Dutch thought the consul- tations had gone far enough and the Germans said they were "thoroughly frustrated" with the project. The Italians openly questioned the sense of trying to arrive at a common position which could have little, if any, influence on the Arabs and Israelis. The French, disappointed by the failure to achieve a greater measure of agreement, began to stress the "educational value" of the exercise. 11. Largely because of external circumstances that weake:ied opposition to France's tactics, the Six were able two months later to agree on a watered- down position paper. Secretary of State Rogers' press conference in March was apparently read as an indication that the US was no longer opposed to out- siders suggesting "solutions" to the parties. The contrast between Egypt's reply to UN mediator Jar- ring's questionnaire and the negati',e response fron+ Israel was cited by a French offici.:,.y, as ::awing ma;;ie a compromise paper possible. An Icraeli diplomatic and press c paign against the efforts of the Six to coordinate Middle East positions backfired and ended in stiffening their resolve.. According to a German official, the foreign ministers had no choice but to reach some sort of agreement. 12. The paper included a reference to the dis- puted French-language version of Resolution 242: withdrawal from "the occupied territories," instead of just "occupied territories." Controversy was not long in breaking out again. Despite an understanding that the permanent representatives of the Six at the UN would make a joint report to U Thant on the commu- nity's deliberations, the French took on this role by themselves. The reaction of France's partners was "furious." For its part, Paris was scarcely less dis- pleased when German Foreign Minister Scheel during a visit to Israel in July implied that the Six were in less than full agreement and that the position paper was still subject to the interpretation of the member.states. 13. Despite the skepticism resulting from these fiascoes, the community members decided in July to continue their study . of the Middle East. Work is now going forward on the possible elements SECRET Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SECRET of a Middle East peace settlement and the jurid- ical guarantees it should contain. Differences among the Six on these topics are reported to be diminishing. Although the Italians and Dutch have continued to oppose the production of any- thing that might be labeled an EC paper, the Dutch have recently slid that they feel in- creasingly une?vy in this position. 14. One proposal coming out of the Middle East consultations is for the community to under- take'an aid program to ameliorate the Palestinian problem. But the major value of the consultations has been that the five have learned a good deal about problems, such as refugees and Jerusalem, which their foreign offices had not hitherto con- sidered deeply. The US Embassy in Bonn says that the Middle East consultations marked another stage in German readiness to "speak out less self-con- sciously if still modestly." The five were also made aware of the difficulties of coordinating foreign policy when there are no rules for decision- making and no permanent- staff to aid the procedure. At the same time, the consultations demonstrated how difficult it is to back out of an implied com- mitment to reach some sort of agreement in the name of "European unity," regardless of the ,in- stitutional framework. Conference on European Security 15. In the early stages of their cxperimert in foreign policy coordination, the Six agreed to consult on East-West relations and the implications of a Conference on European Security. Despite the obvious immediate interest of the members in this question, the initial phase of their consultations failed to produce a formal paper. The failure was probably due less to profound differences of atti- tudes than to the awareness of France's partners that, because of the NATO consultations, they need not make concessions to Paris in order to have their voices heard? 16. Although the Six had agreed at the be- ginning to avoid duplicating NATO's work, much of their discussion prior to the June NATO ministerial Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 -7- Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SFCR FT 25X1 session in Lisbon came to revolve around two.ques- tions under debate in NATO. These were the form a Conference on European Security might take and the nature of preparations for it. The EC consultations gave the French another forum in which to advocate their special ideas on how to proceed to the desired conference. In May the Fa.ench characterized the consultations as "not very satisfactory," mainly because the Six were not prepared to take a more "positive" view of a security conference. Since then; several of France's partners have shown sympathy for the French proposal to hold a conier- ence at the ministerial level in three stages. And the French, in turn, have shown signs of agreeing to a long period of careful preliminary examination of the procedures and substance of a Conference on European Security. 17. The Six have not been able thus far to reach a common position on their objectives at a Conference. They have, however, presented the foreign ministers with a paper on the interests of the Six in the fields of economic, scientific, and technical cooperation. The paper will in turn be presented for consideration in r~ATO. A further suggestion that the Soviet Union and the East Euro- peans be informed at the outset of the "special and separate" role which the EC would play in nego- tiations on these topics met with firm French opposition in October. 18. The issue of a security conference is certain to prove an even greater test of the ef- fectiveness of the consultative mechanisms on the Six than the Middle East because their interests are more directly involved. They face a dilemma of how to reconcile the feeling of France's part- ners that the Community cannot approach the ques- tion of detente in disarray with the opposition of the French to a "bloc" approach. The French, in line with their policy of de-emphasizing com- munity institutions, oppose representation of the Commission at a security conference. The Dutch, at the other extreme, favor a community presence, despite misgivings that too much co- ordination by the EC could interfere with dis- cussions in NATO and strain ties with the US. SECRET Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SFCR ET 19. Basically, the security conference con- sultations among the Six reflect the usual differ- ence between the French, who recognize the need for West European strength through unity but want to maximize their control, and the other five, w'.to believe that the Six should adopt common positio:is. The Mediterranean 20. Last May the Six agreed to consult on the Mediterranean, as distinct from the Arab- Israeli problem. The Germans and Italians, who initiated the discussions, had no exaggerated ex- pectations. The German idea was to draw the Six into an analysis of the security situation in the area and to foster a coordinated community response in the economic and aid spheres. Bonn recognized that differences among the Six on the Mediterranean ran as deep as those on the Middle East, but sought a forum in which to make their opinions heard. Foreign Minister Scheel recently stated that Ger- many, as a member of the community, has "become a Mediterranean state, taking its place beside the traditional ones." "Because of this," he added, "it must help devise a Mediterranean policy which goes somewhat further than trade in citrus fruits." He might have added that the community has no such policy even on citrus fruits. 21. It seems doubtful that the political consultations will lead to any progress on the commercial front. The Six are reluctant to raise subjects directly covered by the community trea- ties and thus require active participation by the Commission. In their: Mediterranean consultations the Six must also avoid Military issues that would encroach on NATO prerogatives. 22. In July the French proposed that the study be'organized into three parts--the Mediterranean Mid- dle East, Mediterranean North Africa, and the Euro- pean Mediterranean. This was agreed to, but the po- litical directors of the foreign offices of the six failed to follow up when they met in September, They have since decided to have another try at framing a SECRET Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SFCR FT mandate for a Mediterranean working group. France has a much more restixcted view-than the others on how to approach the Mediterranean topic. According to a German official, Paris fears that countries such as Greece and Spain would be troubled if the EC were to consider their broad geopolitical role in the area. China 23. The first exchange among the Six on policy toward Communist China took place at the meeting of the political committee on 21-22 September. Italy had proposed a special meeting, but the Germans con- sider premature any "in-depth" study of China policy by the Six and agreed only to include the topic in a larger agenda. Agreement to discuss China grew out of Conflicting pressures on Bonn. On the one hand,'there was the desire to put first things first-- i.e., relations with Eastern Europe and the Soviet Union. On the other, some of Germany's partners were anxious to begin more formal consideration of China policy and within Germany there was increas- ing criticism of Bonn's lack of a China policy. In any event, the discussions this fall were little more than restatements of known government positions on Chinese representation in the UN. Political Unification Working Group 24. In addition to the various groups of ex- perts on specific substantive issues, the Six set up a group to monitor progress as a whole and to suggest improvements in the consultation process. This group has not yet begun to discuss any particu- lar proposals for European pblitical'integration. Instead, it has concentrated on procedures for con- sultations among ambassadors of the Six in other countries and in international organizations, and on guidelines for an "information" policy to keep the candidate countries and other non-EC states in- formed on the consultations. SECRET Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SECRET Effectiveness 25. The consultations have so far served to clarify national foreign policy positions, not to change them. Whatever shifts are detectable in the attitudes of the. Six vis-a-vis Israel and the Arabs, for example, are probably more the result of a grad- ual reassertion of the security and economic inter- ests of individual West European countries than of a movement to assert these interests as a bloc. And Rome, especia y skeptical of French intentions, is aware that the EC enlarges its role in the Middle East. All of France's partners are conscious of their joint po- tential for influencing French positions even though they are wary of French pretentions to "speak for Europe." The French themselves, to judge by their recent reluctance to push hard on further Middle East studies, seem impressed that EC consultations may restrain rather than bolster Paris' hand. 27. Regardless of the lack of concrete achieve- ments to date, the consultations are now an estab- lished forum for considering foreign policy matters. Belgium has proposed that pre-trip "briefing consul- tations," such as the Germans gave their EC partners before Brandt's meeting with Brezhnev, become rou- tine procedure. In October,. the Six agreed to "harmonize" their views on Indian Prime Minister Gandhi's trip to Western Europe and, afterwards, to hear full reports on her visits to Brussels, Paris, and Bonn. As the consultations proceed, more topics find their way to the agenda. In October, the po- litical directors discussed the problem of a suc- cessor for UN Secretary General and the Soviet pro- posal for a World Disarmament Conference. 28. Perhaps the biggest bonus of the consulta- tions has been the realization that existing proce- dures fall short of the system required for. real po- litical unity. Foremost among the weaknesses is the -11- Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SECRET absence of a standing secretariat to facilitate the. consultative process and provide continuity between meetings of the experts and political directors. A Quaff, official, for example, recently remarked that it becomes increasingly difficult for his and other political directors to keep tabs on the political work of t.he,EC as the number of projects before them increases. He suggested that a small secretariat might be helpful. 29. The infrequency of the meetings of the for- eign ministers themselves--only twice a year--also weakens the existing system. So too does the lack of popular interest in or support of the proceedings. This defect could perhaps be rectified, in part at least, if a more meaningful role were given the Euro- pean Parliament. Finally, the near total exclusion of defense questions from consideration detracts from the over-all impact. No link with NATO's "Eurogroup"--which does consider such questions--has been established. 30. The French official cited above ruled out "at the mom^nt" the creation of a secretariat fcr political questions.along the lines of the EC Com- mission. Others have maintained that an independent body like 'he Commission is required to begin a dia- logue that would include the Council (representing the governments) and the European Parliament. In a recent series of articles criticizing community procedures but admiring the looser arrangements of the political consultations, EC Commissioner vahrendc.*:f admitted that the "only" thinjs lacking in the latter were ef- fective, common institutions, and binding rules of procedure. 31. The existing state of these consultations nevertheless accurately reflects the reluctance of the EC members to subordinate their individual na- tional, interests.. The Dutch, for example, recognize the inadequacies of the current. procedures but find some security in them.. Dutch leaders have made it clear in parliamentary cl.ebates that they are not prepared to move further along this road until the British participate fully. Others share the Dutch Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SECRET fear that a "strengthening" of the consultative pro- cess might not only fail to contribute to the devel- opment of a political community but could reinforce the claims of France--or Germany--to speak for the Six. On to a New Look for "Europe"? 32. While the foreign office consultations have been proceeding on their uncertain course, other developments bearing directly on a "Political Europe" have also been taking place. Early this year, France gave indications it was willing to ad- dress the question of how to build Europe institu- tionally. In a press conference last January, Pres- ident Pompidou said that an eventual European Con- federation would have td-have a "European govern- ment the decisions of which were binding on all the states belonging to it." The starting point could not be "technical organizations," but "a coming to- gether of the national governments for the purpose of taking decisions valid for all." Pompidou fore- saw three stages: first, the Council of Ministers as it presently functions; second, a Council where national ministers would be specially charged to handle European questions; and finally, a Council-- composed of "European" ministers--with its own "executive agents" separate from the national admin- istrations. Moreover, he added "the day there is a genuine European government, there must be a genuine European Parliament." 33. Pompidou's sketch of an eventual "European government" as well as the process of arriving at it has raised many questions. For example, the concept of a "confederation" capable of making bind- ing decisions on its members might seem more descrip- tive, in fact, of a federal system. 34. In the intermediate stages, also, impor- tant questions are unanswered. What relation would the "European ministers,"--still members of their national governments--have to other national minis- ters? Is the role of the EC Commission to decline as the power of European ministers increases? Would the Council's "new look" encourage it to deal with Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SECRET problems outside the competence of the'community' treaties and thus further erode community principles? What assurance would there be, in the absence of any. proposals to limit the intermediate stages by precise deadlines, that the deadlocks characteristic of the present Council system could be overcome? There is really no "constitutional" phase foreseen, and it is doubtful that a project so far-reaching in its impli cations as a "European government" could be properly launwhed by a diplomatic conference that envisages a parliamentary role only at the end of a very long road. 35. The ambiguities in Pompidou's proposals reappear in France's approach to the Communities. There is no doubt that Pompidou puts greater stress than his predecessor on the community framework, but he always has reservations. Political consultations are to be fostered, but with a minimal role for the Commission; monetary union is to be pursued, but ad hoc bodies such as the Committee of Central Bank Governors should implement important aspects; the Six should act jointly on the narcotics problem,, but the work should be entirely separate from the EC structure. 36. Notwithstanding the reluctance of France to endorse "supranational" institutions, Pompidou's proposals do suggest, for the first ;ime, that a dialogue with Paris on the issue may be possible. No matter hogs equivocal some of the language, France and its partners can now at least claim to be talk- ing about the same thing. 31. Brandt spoke publicly in April of Germany's wish for a "Europe an. government, reasonably organized, which can take the necessary decisions in fields of community. policy, the activities of which are subject to parliamentary control." Scheel proposed in a news- paper interview that "guidelines" be formulated for a discussion of Pompidou's ideas. And he foresaw an "organ independent of the national states" partici- pating in decision-making, a strengthening of the European Parliament, ar applying the "tested insti- tutional principles" of the community treaties. Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 states participate in wielding the powers thus trans- ferred, and how? How will authority be divided among the European Parliament, the Council, and the Commission? Harmel suggested that powers might be transferred "issue by issue" and that these powers should be "delegated" before being transferred fi- nally. 38. Addressing the institutional question in the Belgian senate, Foreign Minister' Harmel raised three questions that would have to be considered at each of Pompidou' s stages: What powers should be transferred to community institutions? Will the 39. While willing to have France spell out its ideas more clearly, none of the Six has been willing to begin serious discussion of institutional ques- tions until the community is in fact enlarged. An Eiysee official conceded in July that Pompidou's thoughts on naming European ministers were still "very general" and were likely to remain so until the. UK was in. When Pompidou met Brandt in June, he reportedly said that the institutional question should be discussed one day, buy. not just then, "in order not to complicate further Heath's task at home." -15- SECRET Approved For Release 2008/10/29: CIA-RDP85T00875RO01100100131-0 25X1 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 SFC',R FT 42. While government leaders have been chary of offering "blueprints" for political unity, various groups and individuals have vigorously tried to arouse public opinion to its importance. The need for a parliamentary role in the unification process and the desirability of a body independent of the member states at least to propose common policies have been stressed. 43. wo studies, still in process, may have some influence,, Jean Monnet's Action Committee, which includes leaders from all political parties except the Gaullists in France and the Communists, has promised a report next year on the forms a po- litical union of the EC might take. In addition, the EC Commission has appointed a group of experts to recommend community institutional r'forms. The study was set up to examine the possibilities for re-enforcing the powers of the European Parliament in light of its recently acquired budgetary respon- sibilities. The Commission takes the view that budgetary competence involves legislative power and that this,. in turn, requires a re-examination of the interplay of all community institutions. Using its right to propose amendments to the Rome Treaty, the Commission intends to submit its views to the Council in 1972. 44. The problem of institutional reform has also been considered in connection with the peren- nial proposal to elect the European Parliament. Representatives to the Parliament are still appointed by the respective national legislatures from among their members, even though the EEC and EURATOM trea- ties provided for eventual election by "direct uni- versal suffrage." The Council has never acted on the draft convention submitted to it by the Parli- ament in 1960 which would implement an election pro- cedure in two stages. Because of renewed pressure from the Parliament and agitation in the legisla- tures of several of the member countries, the Coun- cil has recently begun to debate the question again and to discuss it with the Parliament's political committee. 45. A priorities problem complicates the par- liamentary election issue. Elections are opposed by some as long as the competence of the Parliament Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 states would be discriminated against in the exist- ing Parliament if representation were proportional to population. over, popular election would probably have to en- tail a change to a bicameral system; the small is so restricted; others reject greater parliamen- tary powers because the body is not elected.. More- 46. It is doubtful that the direct election question will come to a head before the Commission presents its over-all program of institutional re- form. Nevertheless the Italians or Dutch could pos- sibly decide before then to push national legislation providing for direct elections from among present members of the respective national parliaments. In any case, it is now generally acknowledged by all save the Gaullists that parliamentary elections and a greater parliamentary role must be dealt with soon. Summit Talks 47. The Hague summit in 1969 demonstrated that, at.the present: stage of the European integration movement, political decisions to launch major new initiatives must still be taken in the highest level "inter-state" forum. Since last May when sharp di- vergencies over monetary policies developed within the community after the German and Dutch floated their currencies, demand for another summit meeting has steadily increased. On 26 September, Scheel formally proposed a summit of the enlarged EC to "take decisive steps to rurther the cause of Euro- pean unification and to fix new guidelines for the community's internal development and foreign rela- tions and for political cooperation among the com- munity countries." The proposal was accepted in principle by the,foreign ministers of the Six and the four applicants at their meetings in Rome on 5-6 November. 48. It seems clear that., there will be some dis- cussion of institutional problems at such a summit. -17- 25X1 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 ,qFC;R FT 49. While the Six generally agree that the sum- mit conference is the proper instrument for setting in motion new common initiatives, summitry has several limitations. Commissioner Spinelli recently pointed out that as currently envisaged the summit conference has no institutional support. Without some continu- ing machinery, declarations of intent at the summit are likely to become diluted--as were the proposals for economic and monetary union--and reduced to "inter-state pseudo-solutions." Spinelli's suggested approach is to combine proposals for popular election of the European Parliament with a reaffirmation of the right of initiative of the Commission and an in- stitutionalization of the summit conference as an over-all guidance mechanism. Although this line of argument comes from a leading and long-time European "federalist" and is doubtless too advanced for most of the European government leaders to support at this time, Spinelli has at least defined the ground that needs to be covered'before "European" institu- tions axe reached. 50. The motives for continued political devel- opment of the community are clear. Internally, the decision-making processes, slow and cumbersome in a community of six, are likely to be even more so in a group of ten. The monetary crisis has demon- strated the fragility of a unity expressed primarily in the elimination of customs barriers. and a common external tariff. A true economic and monetary union 25X1 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 Approved For Release 2008/10/29: CIA-RDP85T00875R001100100131-0 GFC R F'T' 25X1 would need the capacity to deal with regional, so- cial, environmental, industrial and research, trans portation, energy and agricultural policy. More- over, with the community acquiring more financial resources of its own, it will need more efficient instruments to manage its fiscal, financial, and budgetary affairs. Also the need for political decision.-making at the European level is seen as the only--way-to maximize Europe's influence in future dealings with the US and to safeguard Europe's interests in an era of East-West detente. 51. How far and haw fast the Europeans proceed toward this sort of unificatic- may depend on how they deal with the question of -uropean defense. National responses to a lessened US military presence in Western Europe would be incompatible with a Europe otherwise attempting to unify its economic and for- eign policies. The British and German governments are certain to encourage the development of European defense cooperation but the French are likely to re- main cautious and even grudging. The most likely area for movement is in conventional arms, although Paris and London may coma to see advantages in some "combination" of their nuclear deterrent forces. But a genuine European deterrent set.ms Pctainable only when the members are ready to commit themselves to greater political unity than they are now prepared to accept. They would also have to be certain that the deterrent would add measurably to their security and that the US would be willing to support, it. 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