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Bilderberg meeting report Yeşilköy, 1958

Bilderberg meeting report Yeşilköy, 1958

From Wikileaks

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May 10, 2009
Summary

This document presents the meeting report for the confidential Bilderberg meeting of 1958, that took place from September 18-20 at the Çinar Hotel in Yeşilköy, Istanbul, Turkey.

The Bilderberg Group, Bilderberg conference, or Bilderberg Club is an "off the record" meeting of around 130 transatlantic political and military leaders, business and banking executives, royalty and other power elites. It has been meeting annually since 1954. Despite its influence on postwar history, which arguably eclipses that of the G8 conference, it does not not have a web site and nor does it publicly release records of its meetings.

This year's meeting is stated to be in Greece from 14 May 2009-16 May 2009.

For background on the group's activities, see this BBC radio 4 report and this Asia Times article.

The documents in this series were housed by Dynbase, a subscription only biographical, genealogical, and organizational database, which became defunct in 2006.

The password lock 'dynbase' has been removed from most of the files by WikiLeaks.
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Context
Netherlands
International organization
Bilderberg Group
Series
File size in bytes
737103
File type information
PDF document, version 1.6
Cryptographic identity
SHA256 bcb422c5a1dd185435ecab6fdde9538b3a83e37f62cefc593ce7ac945688032e


 

  • Bilderberg meeting report Saltsjöbaden, 1962

     

    Bilderberg meeting report Saltsjöbaden, 1962

    From Wikileaks

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    May 10, 2009
    Summary

    This document presents the meeting report for the Bilderberg meeting of 1962, that took place from May 18-20 at the Grand Hotel Saltsjöbaden in Saltsjöbaden, Sweden.

    The Bilderberg Group, Bilderberg conference, or Bilderberg Club is an "off the record" meeting of around 130 transatlantic political and military leaders, business and banking executives, royalty and other power elites. It has been meeting annually since 1954. Despite its influence on postwar history, which arguably eclipses that of the G8 conference, it does not not have a web site and nor does it publicly release records of its meetings.

    This year's meeting is stated to be in Greece from 14 May 2009-16 May 2009.

    For background on the group's activities, see this BBC radio 4 report and this Asia Times article.

    The documents in this series were housed by Dynbase, a subscription only biographical, genealogical, and organizational database, which became defunct in 2006.

    The password lock 'dynbase' has been removed from most of the files by WikiLeaks.
    DOWNLOAD/VIEW FULL FILE FROM
    fast site, current site, Sweden, US, Latvia, Slovakia, UK, Finland, Netherlands, Poland, Tonga, Europe, SSL, Tor

     

    Context
    Netherlands
    International organization
    Bilderberg Group
    Series
    File size in bytes
    1971462
    File type information
    PDF document, version 1.6
    Cryptographic identity
    SHA256 fc0289a469f79191e135bdb70ca1b142d0b25e63936a50149a17862a7a47221c

     



  • Bilderberg meeting report Fiuggi, 1957

    Bilderberg meeting report Fiuggi, 1957

    From Wikileaks

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    May 10, 2009
    Summary

    This document presents the meeting report for the Bilderberg meeting of 1957, that took place from October 4-6 at the Grand Hotel Palazzo della Fonte in Fiuggi, Italy

    The Bilderberg Group, Bilderberg conference, or Bilderberg Club is an "off the record" meeting of around 130 transatlantic political and military leaders, business and banking executives, royalty and other power elites. It has been meeting annually since 1954. Despite its influence on postwar history, which arguably eclipses that of the G8 conference, it does not not have a web site and nor does it publicly release records of its meetings.

    This year's meeting is stated to be in Greece from 14 May 2009-16 May 2009.

    For background on the group's activities, see this BBC radio 4 report and this Asia Times article.

    The documents in this series were housed by Dynbase, a subscription only biographical, genealogical, and organizational database, which became defunct in 2006.

    The password lock 'dynbase' has been removed from most of the files by WikiLeaks.
    DOWNLOAD/VIEW FULL FILE FROM
    fast site, current site, Sweden, US, Latvia, Slovakia, UK, Finland, Netherlands, Poland, Tonga, Europe, SSL, Tor

     

    Context
    Netherlands
    International organization
    Bilderberg Group
    Series
    File size in bytes
    115783
    File type information
    PDF document, version 1.3
    Cryptographic identity
    SHA256 623e294d32d7ad1f83a54c45a006f5e2b06824c5b554e0e12a6e2707ec52ca43
  • BILDERBERG GROUP

    FIUGGI CONFERENCE

    4-6 October 1957 (Participant list has been moved to a separate file)

    INTRODUCTION

    The sixth Bilderberg Conference met at Fiuggi, Italy. The first five were held in the

    Netherlands, France, Germany, Denmark, and the United States.

    A number of persons who had indicated their intentions of attending were prevented

    from doing so at the last minute by Asian influenza. Forty-five persons attended from

    eleven different countries; whatever their status or function in public life they all took part

    in a purely personal capacity. Like all other meetings of the Bilderberg Group this

    Conference set as its purpose the frank discussion of problems of common concern to the

    nations of the Western alliance. Its members were all informed persons of authority and

    influence in their respective countries. Since difficulties and differences are bound to arise

    among any group of democratic peoples which believes in the right of dissent, the

    Bilderberg Group aims at contributing towards a reconciliation of divergent views and

    interests by providing the opportunity of free discussion among leaders of opinion who

    share a common desire to achieve a better understanding of one another's motives and

    intentions.

    For this reason, the subjects chosen for discussion at Bilderberg Conferences mainly

    concern questions on which the Western Alliance may have difficulty in agreeing. Fruitful

    discussion requires an atmosphere of mutual trust, so that participants can express

    themselves in complete frankness. This has been largely achieved at all the Bilderberg

    Conferences because the meetings are held in private, the press and public are excluded

    and neither background papers nor speeches are published. In the final printed report,

    including the present one, opinions are summarized and speakers are not quoted by name.

    The Conferences of the Bilderberg Group do not aim to formulate policy or even reach

    conclusions—no resolutions are submitted for discussion or voted upon. The purpose of

    the debate is to present a comprehensive review of the problems on the Agenda from

    which each participant is free to draw his own conclusions. It is hoped, however, that as a

    result those who attend the meetings may be better equipped to use their influence so that

    the Atlantic alliance may function better.

    The main items on the Agenda of the sixth Bilderberg Conference were as follows:

    1 Survey of developments since the last Bilderberg Conference.

    2. Modern weapons and disarmament in relation to Western security.

    (a) The impact of technological progress in armaments on strategy and

    diplomacy.

    (b) Limitation of armaments and the effect of it on NATO.

    2 Are existing political and economic mechanisms within the WesternCommunity

    adequate ?

    Background papers were circulated before the meeting to provide information or the

    discussion or to focus debate on particular issues. Following normal custom, as each new

    subject was broached, the authors of the relevant papers opened the discussion by

    commenting upon them.

    The Bilderberg Conferences are held throughout in plenary session so that any member

    may participate in any of the discussions. Advantage is also derived from the

    opportunities for informal conversation outside the conference room among participants,

    who spend three days living together in the same hotel away Tom the distractions of the

    city.

    I. GENERAL SURVEY

    The Conference began with a general discussion of international developments since

    the previous meeting at St. Simons Island, Georgia, in February. The main themes of this

    discussion were political developments in the Communist bloc and the Middle East, and

    economic developments in the free world.

    (a) The Soviet Union

    The opening speaker analysed recent changes inside the Soviet leadership and

    compared the position and methods of Khrushchev with those of Stalin. Khrushchev must

    be seen as personifying the Communist Party element in the Soviet ruling class. He had

    first liquidated Beria so that the Party could regain control over the police. He demoted

    Malenkov so that the managerial bureaucracy could be subordinated to the Party—this

    was also the main purpose of the economic decentralization carried out earlier this year.

    The elimination of Molotov, Malenkov, and Kaganovich from the ruling group was

    accompanied by the old Stalinist technique of enlarging the most important Party organs

    so that they could be packed with the leaders' nominees. Though many observers expected

    the recent changes to mean a strengthening of the Red Army's power, the speaker doubted

    this on the grounds that whenever the Army seeks to strengthen its influence in a State it

    is the Majors and Colonels and seldom the Field Marshals who are behind it. It was

    doubtful whether the present Army leaders in Russia were capable of exerting much

    influence.*

    There was every reason to believe that the Communist Party was now firmly in control

    of Soviet policy. As long as this situation lasted, the attitudes resulting from Party

    predominance in domestic affairs would determine Soviet policy abroad. There was no

    ground for hoping that recent changes in the Soviet leadership would produce an

    improvement in East-West relations.

    It was easier to interpret the trend of Soviet policy by comparing the relative strengths

    of the two power blocs. Perhaps Khrushchev was taking more risks in foreign policy

    because he felt the Soviet position to be stronger—witness Russia's lead in the I.C.B.M.

    and the Sputnik.

    One of the speakers believed that domestic problems were far more important to the

    Russian leaders than external problems—the former determining Soviet policy on the

    latter. There was disagreement in the Conference, however, concerning the nature of the

    interaction between domestic and foreign policy in Russia. Though Soviet foreign policy

    appeared to be tougher now than before, the internal system was subject to serious

    pressures and weaknesses. New social forces were beginning to exert a direct influence on

    Government behaviour—in particular the intelligentsia, the younger generation, and the

    managerial middle class. One result was an increasing demand for consumer goods which

    already faced the Russian leadership with difficult economic problems. The demands on

    the Soviet economy were now so large and numerous that it was doubtful whether the

    present system could satisfy them all.

    One of the participants felt that for this reason the West should keep Russia under

    economic pressure by maintaining the arms race, which put much more serious burdens

    on the Soviet Union than competition between East and West in aid to the underdeveloped

    areas. Other participants, however, maintained that, since Russia now had a

    lead of four to one over the West in ground forces on the European continent, she could

    afford to reduce her margin of superiority considerably in this field without losing her

    capacity for military pressure or direct aggression. Other participants showed concern that

    in fact the West had been disarming unilaterally during the year without attempting to

    obtain military or political concessions from the Russians in return. (Some of the points

    made concerning defence and disarmament during the preliminary discussion will be

    recorded below in section III.)

    (b) Communism outside the Soviet Union

    Many participants referred to the setbacks suffered by Communism in Western Europe

    where Communist Party strength was at its lowest since the Second World War; its losses

    among the intellectuals, mainly as a result of events in Hungary and Poland, were

    particularly important. Russia's position was also much weaker in the satellite countries.

    One of the participants described the situation in Poland, which he had recently visited.

    He pointed out that it was now possible to establish economic and cultural contacts in

    many fields with the inhabitants of the satellite countries. Several other speakers also

    stressed the political gains which might follow economic co-operation with Eastern

    Europe. These countries must be shown that they need not rely exclusively on the Soviet

    Union for economic aid. One of the participants pointed out that this might also be true in

    China. Several speakers pointed out that the West was still unprepared for a repetition of

    the upheavals which occurred last year in Poland and Hungary. As regards Poland, there

    was still much hesitation in the West about the desirability of granting economic aid. We

    still had no policy for dealing with another explosion on the Hungarian model. This hiatus

    in our policy gravely weakened our propaganda to these countries.

    One of the German participants referred to the Polish-German problem and in

    particular to the Oder-Neisse line as a factor which helped to keep Poland inside the

    Soviet bloc. He was confident that it would be possible to find a satisfactory solution for

    what was fundamentally a legacy of Hitler's war. While Germany would have to renounce

    her legal claims, she should not be called upon to make unilateral concessions, even

    though, when it came to negotiations, Germany might have to give up far more than

    Poland. Both parties should be less intransigent on this question. It should be possible to

    reach an agreement along the lines of that already reached between Germany and France.

    (c) The Middle East

    While Russia had lost ground on the European front she had gained substantially in

    the Middle East. One of the participants maintained that it was not sufficiently realized

    that the problem here was not Communism as a political doctrine but Russia as a

    diplomatic influence. Syria, for example, was not turning Communist—it would be

    quite misleading to compare her with the satellite states in Eastern Europe. But Syria

    was becoming a vassal state of the Soviet Union under the control of Russian agents

    and nominees.

    Russia had used her arms deliveries to extend her political influence. The Army, in

    particular the armoured units and the intelligence service, were in the hands of Russian

    stooges and this was enough to give Russia a decisive influence inside the Syrian

    Government. Russia's ultimate goals in the Middle East were to encircle Turkey, to evict

    the West from its military bases, and to cut its oil supply and deny it the free use of the

    Suez Canal. The West, therefore, must support Turkey and secure its oil supplies by

    building super-tankers and additional pipelines through Turkey. One of the participants

    believed we should also have to revise our attitude towards Colonel Nasser, however

    disagreeable this might be. It was pointed out that most of the tonnage which has been

    recently added to the world tanker fleet was being registered under the flags of Panama or

    Liberia; it was thus not under direct control by the Western Governments, and in case of

    crisis it could well be withdrawn to serve other clients. It was generally agreed that the

    Western countries should have a common policy in the Middle East, particularly since

    they all suffered the same serious limitations in their freedom of action. For example, they

    were committed to preserve Israel as a separate state in the Middle East although the

    Arabs considered Israel as their main enemy. Thus they could not play the card of Arab

    nationalism so successfully as Russia. As crisis succeeded crisis in the area, the West had

    never been able to develop and clarify a general line of policy for the Middle East. One of

    the major difficulties was the indiscriminate spread of arms among the Arab states and

    Israel. Some participants felt that the West should explore the possibility of reaching

    agreement on an arms embargo in the Middle East. Others felt the possibility of such an

    agreement was so remote that it was not worth jeopardizing relations with our Arab allies

    in order to achieve it.

    It had to be admitted that though the Western countries agreed in principle on the need

    for a common policy in the Middle East, they were still far from having achieved it. Each

    Western country tended to choose one Middle Eastern state as its particular client and to

    pursue friendship with it at the expense of good relations with the area as a whole. Britain

    had Iraq, America had Saudi Arabia, France had Israel, and now Italy had Persia, yet

    many of these states used the assistance they received from their protectors to pursue

    private conflicts with the clients of other Western powers. The recent trouble in Oman

    was a good example.

    One participant felt that in inheriting the position of Britain and France as the

    predominant Western Powers in the Middle East, the United States had copied some of

    the political errors of its predecessors, in particular an over-reliance on the old ruling

    classes which were bound to disappear in the near future. It was a mistake to rely on the

    artificial patriotism of the royal families rather than the nationalism of the rising classes,

    which gave much more importance to the concept of Pan-Arab unity than to the existing

    state boundaries. Other speakers pointed out that however desirable it might be in theory

    for the West to identify itself with the revolutionary groups in the Arab world, in practice

    we had to accept the political situation as it was today and co-operate with whatever

    groups were in power. Moreover, in some cases the old ruling groups contained the most

    progressive and constructive elements.

    In this respect as in others the real disagreement in the Conference was on the

    priority of long-term policies as against short-term expedients. No one denied the

    necessity for American intervention during the Jordan crisis, but some participants felt

    that the success of this intervention had misled America into imagining that it was a

    precedent which could be followed successfully elsewhere. In the long run the West

    must find some better way of making contact with the broad mass of Arab opinion and

    with the political and social groups which represented it in practice. Several

    participants drew attention to the serious shortcomings of Western propaganda to the

    Arab world. Cairo Radio still had an overwhelming influence in the Middle East.

    Whatever could and should be done to cope with immediate crises as they arose, the

    West must try to develop a long-term policy. It looked as though the Eisenhower

    doctrine, which had been welcomed at the last Conference as evidence of a positive

    American concern with the area, was already losing its rele vance in the military field.

    In the economic field, however, it remained valid and several participants felt that this

    was the most promising field for Western initiative. One speaker stressed the

    importance of a regional approach in the Middle East. So long as the area was treated

    as a mosaic of separate economic entities, there was little scope for fruitful

    intervention. Several participants called for a new Western effort to solve the problem

    of the Arab refugees, as a major obstacle to better relations between the Arab states and

    Israel.

    It was pointed out, however, that economic development in the Middle East raised the

    same problems as in Asia or indeed in Europe during the Industrial Revolution. If the

    backward peoples were given access to modern techniques and to a twentieth-century

    standard of life, they must also be guided towards political democracy, otherwise the

    social chaos created by rapid economic development would provide Communism with

    new opportunities. For this reason one of the speakers believed that the problems of the

    Middle East should be seen in conjunction with those of similar areas in Asia, and more

    should be done to link the problems of the Far East and Middle East together.

    (d) Inflation

    It was impossible to discuss such problems as defence and overseas development

    without considering the impact of these expenditures on the domestic economy of the

    Western Powers. Reviewing the situation in the United States, one of the participants

    said there had been considerable development both in the depth and breadth of the

    American economy. The chief problem now was to maintain stability in economic

    growth. There was a close relationship between a stable currency and stability of

    employment. People realized that inflation must lead to a "Bust" and to mass

    unemployment. In its rapid economic development since the Second World War,

    America faced a new set of problems. As a result of past experience, many defences

    against depression had been built into the economic structure, but there was less

    protection against inflation. Economically, the USA was still fighting the last war. All

    of the Western countries now had to decide how great a demand they could place on

    their economies and how much they could pay themselves for what they did. We must

    examine our national budgets, our credit policies and our price support policies in the

    light of the pace at which our economies could develop. Unless we preserved

    flexibility

    and resilience in our economies, they might collapse under the strain of built-in

    inefficiencies and inflation-encrusted costs. We must aim at stable economic growth

    with rates of expansion which could sustain an improvement in our living standards,

    support our defence establishments, and make reserves available for the

    underdeveloped

    parts of the world. We should approach this task confident that it could be done

    without

    a steady attrition of our currency. Experience would prove whether our confidence

    was

    justified. The speaker felt sure our economies were strong enough to accept the

    measures of restraint which might be necessary to keep inflationary tendencies under

    control.

    Though there was general agreement on the desirability of halting inflation, some

    participants doubted whether in practice it was possible to maintain a stable level of

    prices at the same time as full employment, i.e. a high pressure of demand on the

    labour

    market. Wages were not, however, the only inflationary factor to be considered. Some

    of

    the speakers discussed the shortage of savings and the role of Government expenditure

    and credit policies. This was particularly important for the under-developed countries

    which had to fight against heavy internal demand and were disappointed at the meagre

    supplies of capital trickling from the huge Western reservoir.

    One of the American participants believed that in spite of current talk of a recession,

    inflation was still the biggest long-term danger to the American economy, since it was

    still fundamentally expansionist; in fact present rumours of a business recession were

    probably mainly due to the measures the Government had introduced against an inflation

    which threatened America's defence posture as well as the basic health of her economy.

    There was, however, also some excess capacity, mainly in manufacturing industries, and a

    consequent decline in stock prices had caused some apprehension. Certain industries were

    particularly weak, for example housing, mineral mining, and the automobile industry. The

    speaker felt that during the past few years the American economy had tried to grow too

    fast and the price level had risen more than it should. Thus, in 1958, the gross national

    product in real terms might level off if it did not actually decline, although in money

    terms it would probably be several billion dollars higher than it was in 1956. Though this

    pause might be healthy and desirable in itself, there was a danger that psychological

    factors might carry it further than was econo-mically justifiable, but on the whole he felt

    confident since basically the American economy was strong and the trends were ''bullish".

    (e) The European Common Market

    )

    Besides discussing economic integration in Europe in its opening session, the

    Conference spent some time at the end of its agenda in considering the European

    Common Market and Free Trade Area. The whole of this discussion is summarized

    below. In general, the American participants welcomed the creation of a European

    Common Market and Atomic Pool. They stressed, however, that the economic benefits of

    the Common Market would depend on its looking outwards and not inwards. If the

    Common Market led to the formation of a self-centred economic bloc, it could do severe

    political and economic harm to the broader development of the free world as a whole.

    Indeed, American tariff policy would be influenced by the way in which the Common

    Market handled similar problems, and the trend inside Europe would have a direct bearing

    on the attitude of the USA as expressed in the legislative programme on foreign trade

    shortly to come before Congress.

    Another speaker believed that, in general, forward-looking business and industrial

    circles in America saw the Common Market as creating opportunities rather than

    obstacles. Exporters, however, took a more realistic view, and expected not only

    increased competition but also an increase in quantitative restrictions" on dollar imports.

    For various reasons the different measures of integration proposed would probably

    influence the behaviour of firms well before they came to be implemented. It was

    expected that the Common Market would encourage industrial concentration in Europe

    and accelerate penetration of American markets. Conversely American industry would

    find it harder to compete in Europe. As a result Americans were beginning to contemplate

    increased direct investment , in European industry, mainly as partners contributing capital

    and, when necessary, technical know-how. There was a danger that protectionist elements

    in the United States might draw fresh strength from these developments.

    Participants from the countries directly involved, however, felt that these fears would

    prove to be unfounded. The Common Market would be implemented by easy stages and,

    if the experience of Benelux was any guide, trade with the outside world would increase

    together with internal trade. They were confident that the Common Market would be a

    step towards greater freedom in world trade as a whole. This was the purpose of the plan,

    although in some cases adjustments had had to be made so that particular interests would

    not be too drastically affected. Now that the internal pattern had been settled in the

    Common Market Treaty, attention would concentrate increasingly on relations with third

    countries ; the Free Trade Area would be the next step in the process of European

    economic integration. One of the European participants from outside the Common Market

    area said that his country, while sharing some of the American apprehensions regarding

    the Common Market, hoped that a way could be found of grafting the Free Trade Area on

    to it. The main obstacle to British and Scandinavian participation in the Common Market

    was its function as a step towards political union among the countries concerned. It would

    not be easy, however, for third countries to associate with the Common Market even for

    economic purposes, since the Common Market represented a delicate balance between the

    interests of its members, which might be disturbed by the addition of further countries.

    There was also the problem of including agriculture, which for countries like Denmark

    was of fundamental importance. Difficulties also arose over the techniques required to

    operate a Free Trade Area, particularly a watertight system for Certificates of Origin.

    Nonetheless the political desire for a Free Trade Area as an addition to the Common

    Market was so strong that these difficulties should be overcome.

    (/) Other Developments

    Several references were made to the crisis at Little Rock over schools segregation.

    While no one was disposed to underestimate the damaging consequences of these events

    on opinion in the uncommitted areas, all the European participants agreed that in Europe

    the American Administration had won credit for its stand and that the incident was rightly

    seen in the context of the general trend in the United States against racial discrimination.

    Several American participants, however, while expressing appreciation for the

    understanding shown by the responsible press and public opinion in Europe, expressed

    misgivings about the consequences inside the United States, in particular the revival of

    Civil War memories and increased racial tension in the Northern States as larger numbers

    of negroes cross the Mason-Dixon line.

    II. ARE EXISTING POLITICAL AND ECONOMIC INSTITUTIONS WITHIN THE

    WESTERN COMMUNITY ADEQUATE?

    This discussion was mainly concerned with the North Atlantic Treaty Organization;

    European institutions attracted less attention, partly because they did not immediately

    concern the American participants.

    (a) The Aims of Policy

    There was general concern that while the Communist bloc benefited from central

    strategic planning in world affairs, the Western Governments had been unable to achieve

    comparable unity. There was no overall co-ordination of policies nor had any attempt

    been made to establish a machinery for this.

    Several participants emphasized the need for a clear definition of priorities in Western

    policy. One speaker suggested that the general aim of Western policy should be to

    produce a shift in Soviet policy from an aggressive attempt to force Communism on the

    rest of the world to one of "live-and-let-live". Rational argument would not achieve this

    without physical pressure exerted by Western military strength and unrest in the satellite

    states. The military and economic strength of Western Europe, in particular, would have a

    direct impact on developments inside the Communist bloc; in this respect the creation of

    the Common Market and of greater European unity would be of considerable

    consequence. All forms of contact with the Communist bloc particularly on the personal

    level should be encouraged.

    Second only to this we should show sincere interest in the progress of the twenty-one

    new nation states of Asia, Africa, and the Middle East. If their help could be enlisted, they

    might exert considerable pressure; this had already been seen during the United Nations

    debate on Hungary. The Soviet concept of peaceful and competitive co-existence should

    be taken up by the West since it offered a better field on which to meet the Soviet

    challenge. There was general agreement that this formulation of Western objectives

    should determine the allocation of Western resources. One of the participants argued that

    we should concentrate first on strengthening our own military and economic position,

    since our own survival and the safety and prosperity of our friends depended on it. After

    this we should concentrate on those areas which had a direct bearing on our strength and

    security. We could not afford to waste our limited resources and it was dangerous to

    encourage expectations which we could not fulfil.

    Though the Conference agreed on the reality of this danger, as borne out by recent

    increases in the bank rate throughout the Western world, a number of speakers felt that

    the new countries of the Middle East and Asia deserved a higher priority in Western

    policy.

    One of the speakers suggested that our main task was to prevent any expansion of

    Soviet influence beyond its present geographical limits, and that this required great

    courage and determination from the West. The Soviet leaders did not hesitate to use

    threats and the West must be ready to respond in kind. Moreover, we must be in a position

    to carry out any threats we made, since we could never afford to bluff. In fact, however,

    the risks of having to implement a threat were much smaller than they superficially

    appeared. In general, our policy should be more carefully worked out and more energetic.

    Time and again, Russia took the initiative so that we were compelled to fight battles in

    conditions of her choosing. The general framework of NATO was the best place for

    elaborating an active policy, though we need not necessarily always make use of its

    machinery. Once we had decided on a policy we should not, as so often in the past, be too

    easily shaken into seeking new postures and new formulas.

    (b) Consultation inside NATO

    It was generally agreed that the central problem was to ensure that nations held proper

    consultations inside NATO before taking decisions which might affect other members of

    the alliance. Although the machinery itself might be perfectly adequate, and juridical

    obligations observed, NATO could break up like similar alliances in the past if members

    were drawn apart by divergent policies outside the area of NATO's direct concern.

    Although NATO was the only institution which covered all countries in the Western

    alliance, its members had a wider range of interests which extended beyond NATO's

    juridical limits. Outside Europe, the interests of members of the alliance differed in

    importance and were sometimes divergent—for example on the colonial problem—yet

    the alliance as a whole might be affected by actions of one of its members in an area

    where its direct interest was greater than that of its allies—for example in the Far East.

    Thus consultation on national policies was highly desirable. A distinction must be made,

    however, between issues of direct juridical concern to NATO on which unanimity was

    required in concerting a common policy, and issues outside NATO's immediate concern

    where the object of consultation was to discover whether national policy was compatible

    with, or at least not con trary to, the interests of other member states. In the latter case,

    unanimity was not essential and consultation need not necessarily lead to agreement. The

    major Powers, whose responsibilities extended beyond the area of the alliance, were

    committed to consulting their partners but not necessarily to agreeing with them. This

    distinction was probably inevitable; but the smaller countries often feared and resented

    the possibility that they might be involved by the actions of their bigger partners without

    their consent and without proper regard to their views.

    There was no criticism of NATO's institutional machinery as such. It was adequate so

    long as it operated within the limits set by common interests and common aims. But once

    the interests or policies of the member states began to diverge, NATO'S machinery was

    paralysed and could not impose a solution. Responsibility for deciding policy rested on

    the national Governments and NATO was only their instrument. Some participants felt

    that this problem could only be solved by a formal transfer of sovereignty along federal

    lines. It was suggested, however, that although NATO was technically the instrument of

    an alliance of sovereign states, in some respects it went further in a federal direction.

    In this connection reference was made to the Council of Europe and other European

    institutions where the unanimity rule in the Ministerial Councils was being slowly eroded

    and more and more questions were being decided by majorities; moreover, objecting

    countries were allowed to contract out of certain agreements. Perhaps this habit could also

    be introduced into the North Atlantic Council.

    Several participants stressed, however, that the present situation in NATO did not give

    ground for serious concern. There was strong moral pressure on small minorities to

    comply with majority feeling and in practice this was usually effective. Providing

    NATO's consultative machinery was properly used it could give satisfactory results even

    in major matters. Everyone agreed, for example, in praising NATO's role in working out

    common Western proposals during the disarmament negotiations.

    One of the biggest problems was to secure adequate consultation within NATO during

    the formulation of American foreign policy. This must be done at an early stage, since it

    was very difficult for the alliance to change an American policy which had already been

    decided.

    (c) The Machinery of NATO The efficiency of consultation depended in part on the

    The efficiency of consultation depended in part on the

    working of the NATO Secretariat and of the Council of permanent representatives. The

    Secretary-General could exert a considerable influence as spokesman for the interests of

    the alliance as a whole. It was important that the rank and standing of members of the

    Council should be high so that they could exert real influence on their respective

    Governments. One of the participants emphasized that they should also be in a position to

    reach those centres of opinion in their own countries which were concerned with making

    foreign policy. This was not so much a question of general propaganda as of establishing

    influence with those who formed opinion in the various countries. At the same time most

    participants agreed that NATO could be made more effective if the member Governments

    would delegate greater powers to their permanent representatives.

    It was felt by one speaker that NATO should and could take a stronger line in dealing

    with sectional interests. It was much too easy at present for individual countries to act

    against the common interest, to hold up decisions, or to impose their own solutions

    without being held up to proper criticism. NATO must establish higher standards of

    behaviour in this respect.

    Recruitment of members to the NATO Secretariat could be improved. Unlike most of

    the European institutions, NATO was staffed by Civil Servants on loan from member

    Governments for comparatively short periods. Thus it was difficult for them to oppose

    departments into which they would soon be reintegrated. They would have more

    independence if they could find a permanent career in an international Civil Service or in

    a permanent NATO staff. Other speakers felt that this was not a major problem. On the

    whole, NATO's staffing was satisfactory. Members of the Secretariat always acted on

    behalf of, or on instructions from, the Secretary-General; thus they benefited from his

    personal prestige. Moreover, while the Secretary-General presided over meetings of the

    Council as a whole, members of the Secretariat took the chair at its various committees

    and could thus exert considerable influence.

    One of the participants suggested that the NATO countries should formally agree to

    submit their disputes to the International Court at the Hague. Whatever its practical

    importance, this would set a useful example to the newly independent countries of the

    world.

    The Conference made a short review of the machinery for dealing with economic

    problems inside the alliance, and there was general agreement that this had worked

    satisfactorily, although the need was felt for consultation on matters of financial policy.

    III. MODERN WEAPONS AND DISARMAMENT IN RELATION TO WESTERN

    SECURITY

    (a) The Impact of Technological Progress in Armaments on Strategy and Diplomacy

    This discussion was mainly concerned with the implications of Russia's newlyacquired

    ability to respond in kind against massive nuclear retaliation by the West—a

    problem often referred to as the thermo-nuclear stalemate. One participant pointed out

    that the phrase "thermo-nuclear stalemate" was not well chosen. It was rather a question

    of "stand-offs" developing at various levels of strategy: for example, Russia's ability to

    neutralize America's strategic thermonuclear power at present depended not only on her

    capacity for direct air-atomic attack on the United States but also on her naval power to

    cut off the NATO forces in Europe from their main base and source of supply in the

    Western hemisphere.

    However, it was generally agreed that Russia's capacity for thermo-nuclear attack on

    American territory had made the threat of massive thermo-nuclear retaliation less

    convincing as a deterrent. There was a growing gap between the policy of deterrence and

    a strategy which the West might be willing to implement if deterrence failed—a gap

    between the total military strength of the West and Western willingness to use this

    strength to the full. The problem for Western statesmen was therefore to develop

    alternatives to a massive retaliation which would provide the West in any crisis with a

    spectrum of possibilities between doing nothing and destroying the human race. One

    participant suggested that the West must develop a strategy of denial in local war rather

    than destruction in all-out war, and that the pattern of future conflict would be short,

    sharp clashes in the area concerned accompanied by negotiations between the two sides

    for a settlement; this would be as much a test of will as a test of military power.

    Though it was generally agreed that it was desirable to aim at such a spectrum of

    military possibilities, there was argument about the feasibility of limiting any war which

    involved both Russian and American troops directly. One participant held that, given the

    absolute weapon, war did not necessarily run to maximum destructiveness, but the

    limitation of war depended on its political objectives rather than the weapons used.

    Moreover, though enemy agreement was required for any limitation in war, this

    agreement was likely to be implicit, as in Korea, rather than explicit, as suggested by

    some advocates of "graduated deterrence".

    Several speakers pointed out that in any case the problem of limiting war could arise

    separately from the problem of deterrence. Wars could break out by spontaneous

    combustion, as in Hungary, or through the action of small Powers, or through

    irrationality in the Governments of large Powers; in such cases a policy of deterrence

    might be irrelevant. Moreover there was the possibility that Russia might deliberately

    organize a local aggression in order to test the West's will and capacity to resist. If the

    West was incapable of halting such an aggression by limited warfare and did not feel

    the

    issue justified all-out thermo-nuclear annihilation, Russia could use her success to win

    further diplomatic victories without the physical use of her military power.

    Thus the West must develop the capacity to smother or control little wars without

    involving the world in a thermo-nuclear holocaust. The most difficult problem was to

    decide whether it was possible to limit the use of atomic weapons or whether atomic

    weapons must be reserved exclusively for all-out war. One speaker gave examples of the

    way in which atomic warfare could be limited in terms of the theatre involved, the targets

    attacked and the weapons employed. Another argued that it was impossible and

    unnecessary to draw up general rules for the limitation of atomic warfare; in practice it

    was necessary and possible to solve the problem only in a small number of theatres, round

    the Sino-Soviet periphery. Moreover, providing Western confidence in the possibility of

    limiting atomic war was sufficient to remove inhibitions against the use of atomic

    weapons, the residual uncertainty as to whether in fact limitations could be maintained

    would only add to the deterrent. Thus NATO's decision to use "tactical" atomic weapons

    in Central Europe could be seen both as suggesting local atomic defence as an alternative

    to massive thermo-nuclear retaliation and as increasing the strength of the "tripwire"

    which would trigger off massive retaliation by automatically raising the stakes at issue in

    any Soviet aggression. It gave Russia no option between leaving NATO alone and starting

    with a major atomic attack to wipe out NATO's tactical nuclear bases.

    One participant, however, disputed the possibility of limiting any direct conflict

    between two atomic Powers, holding that the real problem-was to clarify the point at

    which aggression would be met by all-out war, any attack below this point being met by

    conventional forces. When one speaker pointed to the Korean war as demonstrating the

    possibility of limitation even in the use of conventional weapons, another drew the

    opposite conclusions from the same evidence, arguing that the Korean war was limited

    only because atomic weapons were not used and because the Soviet Union did not

    directly confront the United States. Some speakers felt that the Soviet Government would

    never accept local defeat as an alternative to extending war, another cited Soviet

    withdrawals in Iran, Berlin, and Korea to prove the contrary.

    There was some disagreement on how a strategy of limited war would affect the

    existing Western alliances. One speaker argued that the concept of an alliance was

    fundamentally incompatible with the localization of a conflict, since the aim of an alliance

    in peacetime was to convince the enemy that aggression would confront him with a

    coalition of overwhelming strength. Another held that those members of an alliance who

    were most exposed to attack could not reasonably reject a strategy involving heavy

    destruction in the battle zone if their only alternative was even heavier destruction for

    mankind as a whole. Nevertheless, it was generally agreed that whether or not NATO

    turned to a strategy of limited war the Russo-American ' 'stand-off" made it politically and

    strategically dangerous to leave the instruments of massive thermo-nuclear retaliation

    exclusively in the possession of the two countries farthest from the front line. This

    consideration led the Conference to discuss the desirability of distributing atomic

    weapons more widely inside NATO. One speaker held that since the capacity for massive

    retaliation was the real sanction behind limitation of war, no member of the alliance

    would feel safe in adopting a policy of limited war unless it held some capacity for

    massive retaliation in its own hands. There was, however, much feeling against increasing

    the present size of the ''nuclear club". A German participant strongly opposed his own

    country possessing small-yield nuclear weapons, partly on the grounds that any attempt to

    provide for limited war in Europe would weaken the deterrent effect of massive retaliation

    which was the only realistic protection against large-scale Soviet attack. Another

    participant felt that general nuclear armament was becoming the only alternative to

    general nuclear disarmament: this fact might ultimately provide the needed pressure on

    both sides for agreement in the disarmament discussions.

    Finally, the Conference discussed the limits which were set on Western arms

    expenditure as a whole by economic and political considerations. One participant felt that

    the existing limits were too narrow, since Russia was spending 18 per cent of her gross

    national product on defence, America only 8|- per cent, Britain 8 per cent, and the other

    Western allies even less. Thus the West was compelled to cover its tactical weakness by

    willingness to take greater strategic risks. It was generally felt that there would be great

    political resistance against any substantial increase in over-all defence expenditure. Some

    participants argued, however, that the Western countries might be prepared to increase

    their arms budget as part of an over-all shift in policy involving much closer co-operation

    between the United States and Western Europe. They argued that as part of such a

    package deal the United States might increase its total expenditure on the basic elements

    of massive retaliation, such as the Strategic Air Command and Civil Defence, while

    Europe increased its expenditure on conventional forces in the hope of providing for local

    defence without use of atomic weapons. Another speaker, however, pointed out that

    Western Europe could never hope to match the Soviet Union in conventional forces alone;

    moreover, the Red Army was already being equipped and reorganized with tactical atomic

    weapons and might well initiate their use in local war.

    Thus the forces defending Western Europe must in any case be capable of tactical atomic

    warfare. He maintained—but his view did not go unchallenged—that to provide

    simultaneously for both conventional and atomic ground warfare in Europe was

    impossible for strategic as well as economic reasons.

    (b) Limitation of Armaments and its Effect on MA TO

    There was general agreement that the negotiations which took place inside NATO to

    produce agreed Western proposals for the disarmament talks deserved great praise and

    had done much to enhance NATO's prestige. In spite of the difficulties involved in

    synchronizing NATO discussions with negotiations in the United Nations Sub-

    Committee, the West had on the whole produced its proposals with adequate speed. Both

    the Governments concerned and the NATO Secretariat deserved congratulation. Without

    this type of consultation the disarmament discussions might have created serious

    divergencies between various members of NATO. In particular, the countries which were

    not directly engaged in the London negotiations might have felt that their national

    interests would not be adequately safeguarded. By avoiding this, NATO had greatly

    reduced the dangers inherent in East-West negotiations.

    When the UN Sub-Committee discussions began there had been some fear in Europe

    that the disarmament negotiations would weaken the defence posture of the West. In fact

    they had strengthened NATO. This prompted several participants to argue that East-West

    negotiations in general and disarmament talks in particular should be treated not as an

    alternative to Western defence policy but as a means of making it more effective. There

    was a large measure of agreement as to the need for co-ordinating our defence and

    disarmament policies.

    Disarmament along the lines of the Western proposals would not have weakened the

    defence establishment of NATO, since they aimed not so much at disarmament as at

    reducing the level of armaments on both sides. Any arms limitation proposals involved

    some risk, but it might be, said one participant, that the risks inherent in the existing

    situation were greater than those implied by a compromise with the Russians. He

    remarked that the West had a mistaken tendency to consider disarmament proposals

    solely in terms of the sacrifices involved in its own strength, while forgetting that the

    other side would have to make corresponding concessions. It was too early to decide

    whether the London talks had succeeded or failed. Time alone would show whether the

    Soviet Union would give our proposals serious consideration. If we regarded our

    proposals as sound and reasonable—and the Conference seemed generally agreed that

    they were—we should stick to them and be patient, although we should not consider them

    as incapable of improvement. While maintaining our official attitude unchanged, we

    might privately examine among ourselves the possibility of some new approaches. For

    example, we might find that certain elements in the package proposals might vary from

    time to time in their relative importance both to ourselves and to the Russians. This

    applied particularly to the "open skies" proposal and the question of the "atomic club". In

    any case our efforts to reach agreement on disarmament must be sincere and must be seen

    to be sincere. This was essential both as regards public opinion in the West and as regards

    our partners in the negotiations.

    Some participants felt that in the past few years the West had thrown away important

    bargaining points on disarmament without receiving anything in return. For example,

    proposals for disarmament on the Western side had actually followed unilateral reductions

    to a lower level than that proposed.

    Several participants felt that the West had given insufficient thought to the possibility

    of negotiating on a zone of limited armaments in Central Europe which would involve the

    disengagement of Russian and American forces. Even from the strategic point of view a

    disarmament agreement along these lines might provide the NATO countries with more

    effective defence than a continuation of the existing situation—particularly since the

    present division of Germany might provoke a local conflict irrespective of Soviet or

    Western intentions. One of the speakers maintained that existing Western defence policy

    ruled out German reunification. In any case there was more chance that the Russians

    might accept a pilot scheme for disarmament in a dangerous peripheral area like Central

    Europe than permit international inspection and control inside her own national

    boundaries. Several speakers referred to the dangers inherent in our present defence

    posture which created a gulf between the nuclear powers on both sides of the Iron Curtain

    and the non-nuclear powers of Western Europe, whose influence was progressively

    declining. Moreover, although the possibility of nuclear retaliation was dwindling as each

    side lost the capacity for protection against a counter-blow in kind, the possibility of local

    conflict involving non-nuclear powers was increasing. This might ultimately impose

    intolerable strains on the Western alliance and was a consideration highly relevant to any

    disarmament agreement.

    PRESS STATEMENT

    From 4 October to 6 October 1957, a group of forty-five Europeans and Americans

    held a private and unofficial meeting at Fiuggi, Italy.

    This "Bilderberg Group" meeting, under the chairmanship of H.R.H. Prince Bernhard

    of the Netherlands, covered a wide range of matters of concern to the Western

    Community.

    While the discussions did not attempt to reach conclusions or to recommend policies,

    there was strong emphasis on the desirability of promoting better understanding and more

    effective co-ordination among the Western nations in dealing with common problems.

    The participants in the meeting came from the United States, Canada, and eleven

    European countries. They included members of different political parties, representatives

    of business, labour, education, and some government officials. All the participants were

    present in a purely personal and unofficial capacity and, in keeping with the private,

    though not secret, character of all the "Bilderberg" meetings, no detailed reports of their

    discussions will be published.

    6 October 1957

    THE FORMATION OF THE MIDDLE EAST STUDY GROUP

    In the course of the debate on Middle Eastern problems, Dr Paul Rykens referred to the

    formation of a Middle East Study Group which was formed after the St. Simons Island

    Conference with the participation of some members of the Bilderberg Group. It will be

    recalled that Mr Eugene Black suggested at St. Simons Island that it might be possible to

    organize co-operation between private business in the West and corresponding elements

    in the Middle East with a view to furthering the economic development of the area. This

    idea met with a favourable response from the Conference, and, as a result of further study

    by a number of business people, the Middle East Study Group was formed in Amsterdam

    on 26 May 1957. During the following months, the Western Governments concerned have

    shown interest, and business circles in Western Europe and the United States have

    indicated their support. The Group is mainly composed of industrialists and financiers,

    since on the basis of its present plans its main interests will probably centre on these

    fields. Although the oil companies have shown a friendly interest in its work, it does not

    propose to include oil among its interests. The geographical area it will cover will include

    Iran and the Sudan, as well as the Arab countries of the Middle East.

    The Study Group has formulated its plans in consultation with the International Bank

    for Reconstruction and Development and the International Finance Corporation, relying

    largely on the advice of their experts. The International Bank has also sponsored meetings

    between the Management Committee of the Study Group and the principal Arab

    representatives who visited Washington for the meeting of the International Monetary

    Fund. Following the conversations which then took place, a number of Middle Eastern

    countries have invited a Mission of the Study Group to conduct a survey on the spot. This

    Mission, composed of Dr Paul Rykens, Chairman of the Study Group, and members of

    the Management Committee, Mr George Nebolsine, Mr Hakon Christian-sen, and Mr

    Pollens, together with some other members of the Group, plans to visit the Middle East in

    the course of October and November.

    DEVELOPMENT OF CO-OPERATION BETWEEN MEMBERS OF NATO

    By an Italian Participant

    1. Two parallel developments—the extension of the geographical area falling under

    Russia's political strategy, and the influence of economic and financial factors within the

    field of this strategy—have, I think, carried much weight in fostering the aspirations of

    those countries which, although fully conscious of the difficulties and limitations

    connected with a further development of NATO's scope, have felt and still feel, in the

    interest of all its members, the necessity of broadening the scope as far as practicable.

    These countries would appreciate some initiatives aiming at such a goal.

    In fact, long after the Communist revolution, the USSR had limited its main political

    action almost exclusively to the areas under its direct influence (China is an exceptional

    case). Correspondingly, when NATO came into existence its scope was limited to the

    European theatre.

    It is, for instance, no secret that the Goa episode in the summer of 1954, although it

    involved territory pertaining to a member of the NATO, as well as certain situations

    developing in Egypt at approximately the same time, gave rise to many doubts as to

    whether these questions could properly be discussed within NATO.

    But, meanwhile, the USSR was in the process of developing its sphere of political

    strategy, whatever differences of form or intensity it assumed, in Egypt, Syria, Yemen,

    Kerala, Guatemala, and also in the attempts of seizing power from within in Ceylon,

    Indonesia, British Guiana, etc.

    At the same time equipment was delivered to India for the installation of a steel mill,

    which was considered one of the first steps for conferring political substance to the

    commercial relations of Russia abroad; there were also offers of technical assistance,

    tempting financial loans, purchase of crops such as rice from Burma, cotton from Egypt,

    the sale of which was difficult for certain countries, and so forth.

    Russia also made approaches in Germany with the bait of alluring possibilities offered

    by the Chinese market in process of industrialization.

    2. Under these circumstances the common interest of the NATO members came to spread

    steadily beyond the Treaty's limited sphere of application and economic elements came to

    be integrated into political ones, thus creating critical situations of which the Middle

    Eastern problem and the oil supplies for Europe afford a good example.

    At the same time the necessity grew for steadily strengthening the economic potential

    of the NATO members.

    I shall not dwell on the great difficulties and the limitations of this closer collaboration;

    Professor Gordon made the point clear in his paper and Ambassador Quaroni has shown

    how conspicuous and frequent but justifiable have been, and may still be, the divergencies

    between the allies' viewpoints. This recalls Hegel's saying that the "tragedy of life does

    not consist in the contrast between just and unjust but between just and just."

    3. On the other hand, now that the era of nations tends towards becoming that of

    continents and maybe—let us hope in a co-operative sense—the era of races, history is

    flowing towards political organizations wherein diplomacy must adopt methods which

    political economy already judges valid.

    At this important stage in history, the West needs at least an organized centre for

    consultations and contacts. A mathematician would tell us that the bilateral meetings

    required for fifteen Nations would amount to the figure of 105. One smiles at this figure

    and it only helps to emphasize the importance of a group procedure to secure—as M.

    Spaak puts it—if not a common group policy, in all cases at least a co-ordinated one.

    It would be a mistake to create rigid rules which might prevent freedom and rapidity of

    action in cases where this would not risk dangerous repercussions for other members. But

    it is impossible to deny that many difficulties could have been avoided if the West had

    discussed the general problem of relations with Egypt in good time, not to speak of the

    withdrawal of financial aid for the Aswan Dam and the Anglo-French expedition to Suez.

    4. The Western Community has made some successful

    experiments which create interesting precedents. Among other things

    I am thinking of trade with Russia and China, where, despite

    differences of opinion, the West as a whole did achieve a common

    course of action.

    The system of infrastructure has shown a perfect integration of military aims and

    progress in civil relations. May this programme be extended to other fields, for instance to

    that of international roads?

    I am also thinking of the common programmes for new and bigger

    sources of atomic and conventional power in order to make the West less

    dependent on specific areas of supply. NATO has also been studying,

    perhaps not too profoundly, programmes of civil mobilization. The new

    strategy certainly requires a fresh study which may bear on some

    economic trends of its members.

    In some instances, which should not however be generalized for fear of dangerous

    repercussions, it might perhaps be wise to consider the purchase of certain crops from

    countries which cannot dispose of them easily, in order to prevent problems of this nature

    from having a political impact.

    5. I am also contemplating, but it may be too ambitious, a joint discussion, even if on

    general lines, of priorities in economic aid to foreign countries, in so far as they reflect

    politically and strategically on problems pertaining to the specific competence of NATO.

    The full weight of American financial power, together with the efforts which Canada and

    some European countries may make in this field, does not suffice to meet the long list of

    needs of the uncommitted nations.

    I will not dwell here on the possible continuation of assistance within the group of

    members of the Alliance, a problem which one should consider not in terms of grants but

    of other forms of collaboration.

    I belong to a country which stands in an intermediate position with highly

    industrialized areas and others which are much less so. In Italy, one feels very strongly the

    social and political importance, not to mention the economic one, of the national effort

    which is being made to eliminate the difference.

    6. As to the problem which presents such a particular interest for the NATO Alliance

    and which we have discussed in previous meetings, i.e. the penetration of the civilization,

    ethics, and ideals of the West among the uncommitted Nations; contrary to the mastery

    with which business advertising is conducted and party propaganda campaigns launched,

    Western Nations, as a whole, have failed in this art, however noble the pursuit.

    In this field, moreover, it would be fundamental that the same language be spoken.

    One should increasingly try to create in the leading class of the new countries, over and

    above admiration for our technical standards, respect for and adhesion to our political and

    moral standards.

    In a particular branch of this field the United Nations have contemplated the creation of

    centres for training elements capable of proceeding to underdeveloped countries to give

    them the benefit of their own experience not only in the technical but also in the

    administrative field—as for instance in the Civil Service. There was a negative reaction

    on the part of some of these new countries who saw in this proposal an attempt to

    intervene in matters of their own concern. The West should train for the above purpose

    not their own citizens but nationals of the countries to be helped who will in their future

    work be also inspired by what they have seen and learned by living in our environment.

    7. My last words will concern a more spiritual subject which is also connected with our

    problem. Without delving into the matter of religious conversion, but thinking in simpler

    terms of the prestige of Christianity, which identifies itself with our Western civilization, I

    must confess my feeling of discouragement on reading that the representatives of no less

    than 170 different bodies: Lutheran, Anglican, Orthodox Christian, met at the last

    gathering in New Haven, United States. I inferred from talks with acquaintances in Africa

    and Asia, how damaging to our prestige are the divergencies between followers of the

    same Christian faith and moral law; these differences are even more noxious when,

    however rarely, they reach the point of petty rivalry.

    I should not like to surprise anybody by adding that it would present an immense

    advantage to stress what we have in common for instance in the anti-Communistic field

    with the Islamic faith.

    4 October 1957



  • Bilderberg Group History, 1956

    Bilderberg Group History, 1956

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    May 7, 2009
    Summary

    The document presents an essay on the Bilderberg Group, written by one of its founding members and permanent secretary Joseph Retinger in 1956.

    The Bilderberg Group, Bilderberg conference, or Bilderberg Club is an "off the record" meeting of around 130 transatlantic political and military leaders, business and banking executives, royalty and other power elites. It has been meeting annually since 1954. Despite its influence on postwar history, which arguably eclipses that of the G8 conference, it does not not have a web site and nor does it publicly release records of its meetings.

    This year's meeting is stated to be in Greece from 14 May 2009-16 May 2009.

    For background on the group's activities, see this BBC radio 4 report and this Asia Times article.

    The documents in this series were housed by Dynbase, a subscription only biographical, genealogical, and organizational database, which became defunct in 2006.

    The password lock 'dynbase' has been removed from most of the files by WikiLeaks.
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    Bilderberg Group
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    32887
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  • THE BILDERBERG GROUP

    by

    DR J. H. RETINGER

    August 1956

    THE BILDERBERG GROUPbyDR J. H. RETINGER

    A few years ago a large number of people began to feel anxious about a growing distrust of America

    which was making itself manifest in Western Europe and which was paralleled by a similar distrust of

    Western Europe in America. This feeling caused considerable apprehension on both sides of the Atlantic

    and in 1952 I felt that it was of the first importance to try to remove this suspicion, distrust, and lack of

    confidence which threatened to jeopardize the post-war work of the Western Allies.

    I therefore approached H.R.H. Prince Bernhard, Dr Paul Rykens, and M. Paul van Zeeland with the

    suggestion that we should organize some unofficial and private meetings to discuss the difficulties and

    dangers which were causing us so much anxiety. To these meetings we would invite influential and

    reliable people who carried the respect of those working in the field of national and international affairs

    and whose personal contact with men at the summit of public activity could help to smooth over these

    difficulties. Acting on the advice of my three friends, I approached about a dozen other people, viz.: Mr.

    Hugh Gaitskell, Major-General Sir Colin Gubbins, Mr. Ole Bjorn Kraft, M. Guy Mollet, Dr Rudolf

    Mueller,

    M. Antoine Pinay, M. P. Pipinelis, M. Max Brauer, Marshal of the R.A.F. Lord Portal of

    Hungerford, Ambassador Quaroni, and Signor de Gasperi. In our view the improvement of relations

    between America and Europe ought not to be undertaken through any special publicity or propaganda,

    since it was of far greater consequence to us to have mutual understanding and goodwill among men

    occupying the highest positions in the life of each country than to try to influence the man in the street

    directly. We had to consider how it would be possible to hold frank and full discussions on these

    problems. In official international meetings, which are attended by representatives accompanied by a

    retinue of experts and civil servants, there are few opportunities for discussion, for three reasons:

    1 Through fear of indiscretion, representatives discuss only the problems, not their mutual

    reactions or the reactions those problems would provoke among the Western countries.

    1 They are swamped by details and practical considerations instead of being able to go to the core

    of the subject under discussion.

    3. If they are not able to reach agreement on a certain point they shelve it in order to

    avoid giving the impression of disunity. Consequently, incidents occur which could have been foreseen

    and which are almost unavoidable in such circumstances.

    On the other hand, when international meetings take place between representatives of only a few

    countries not all inter-related problems can be discussed, because there is no adequate representation to

    emphasize the points of all individual countries.

    Finally, the leaders of public life are not only politicians. Other big interests—religious, financial,

    industrial, trade-unionist, intellectual—are also responsible for the relationship among countries. The

    second point we had to consider consisted in ensuring that frank conversations could take place without

    running the risk of being misinterpreted by the press and that there should be no interminable speeches

    for the sake of publicity. It was clear, therefore, that such conversations had to be conducted privately,

    unofficially, and confidentially, and for this reason we decided not to admit the press to our meetings,

    restricting publicity in general to one or two very short communiques which do not go into any details,

    nor mention any individual speakers, in order to ensure that neither the subject of our discussions nor the

    names of the participants should be given any publicity. Experience has proved this course to be the right

    one, since our debates take place in a spirit of complete frankness and discretion, and participants are

    never afraid that anything they say will be used against them.

    Everybody who attends our meetings does so in his private capacity even if he is the leader of a

    government, a party, or an association, and thus he is not responsible to his supporters for anything he

    may say.

    In order not to be accused of starting an unofficial political "mafia", we decided from the outset not to

    consider ourselves a policy-making body but to have as our principal aim the smoothing over of

    difficulties and tendencies among countries and the finding of a common approach in the various

    fields—political, cultural, economic, and social. Moreover, we do not contemplate taking any direct

    action. We draw the attention of existing organizations to the points in question; what those organizations

    do remains their own responsibility. For this side of our work, however, we have always had the tacit

    approval of the Governments of the countries to which the participants belong.

    We have tried to attract to our group, and our attempt has been successful, people of various tendencies,

    although we have not considered it necessary to have a representative of every tendency of every national

    group. We think there is no necessity for instance to have every Catholic country represented by a

    Catholic and every Protestant country represented by a Protestant. We believe that we should invite to

    our group a certain number of Catholics wherever they may come from, as long as they have full

    authority within their sphere of influence, and of course this applies equally to Protestants. In the same

    way with trade-unionists, it has not proved necessary to have a representative of trade-unionists from all

    the Western European countries. For this reason also it has been our custom to invite representatives in

    the proportion of one-third politicians and one-fifth business , men and trade-unionists, the remainder

    being intellectuals, professional men, and other leaders of public opinion. The first essential is

    undoubtedly to have me1n of absolute personal and political integrity; the second, to have men of real

    international standing, or whose position in their own countries is such as to give them considerable

    influence in at least an important section of the population, men who in their own field hold a position of

    authority and enjoy the confidence of their fellow-men; the third, to have men with no obvious

    nationalistic bias and who are broad-minded when it comes to other people's problems which may

    conflict with their own; last, but not least, men who, in addition to the qualifications just mentioned, can

    be considered as animated by the highest public spirit.

    It was further decided that to ensure all these conditions no official organization or association would be

    set up, and no party, tendency or interest asked to nominate their representatives. Instead, we would

    choose the people to be invited to take part in our meetings, mostly guided by the nature of the subjects

    to be discussed, and using great care to preserve a strict balance. This decision has proved a wise one.

    We hold round-table conferences with people whom we believe represent the general opinion of the

    leaders of their country. At our meetings, however, we draw conclusions, but there is no voting on

    resolutions.

    Our chairman is H.R.H. Prince Bernhard. At our first meeting, however, M. van Zeeland presided,

    while at our first international gathering at Bilderberg the chairmanship was held in rotation, as follows:

    Prince Bern-hard, a Belgian, an American. For various reasons it was later decided that it would be better

    to have one chairman, and to the satisfaction and pleasure of all concerned H.R.H. Prince Bernhard

    accepted this position. He is the convenor of our international meetings, over which he also presides. I

    am myself responsible for all the spadework for the group as a whole, as well as for the members for

    Western Europe, while Mr. Joseph E. Johnson undertakes similar work in the American group. Mr. Paul

    Rykens is the superintendent of our treasury. A Steering Committee has now been set up which is

    composed of the original members on the European side, except that the late Signor de Gasperi has been

    replaced by Signor Amintore Fanfani. In addition, the following persons have become members: Sir

    Terence Airey, Mr. Jens Christian Hauge, Mr. D. Healey, Mr. E. N. van Kleffens, Mr. Reginald

    Maudling, Mr. Alfred Robens, Professor Carlo Schmid, and Mr. Otto Wolff von Amerongen. On the

    American side there are five members in addition to Mr. Johnson, viz.: Mr. George Ball, Mr. John H.

    Ferguson, Mr. H. J. Heinz, Mr. George Nebolsine, and Mr. Dean Rusk.*

    So far as participants in the international conferences are concerned, the main core remains the same,

    but since there are always different problems to be studied different people must be invited to each

    conference.

    It is our desire to keep this group as a loosely knit association with no rules of procedure except

    those acquired by experience. For this reason, and because of the fact that there are no properly

    established offices, the central office having been set up in my own flat, the running expenses are very

    small. Moreover I myself as honorary secretary involve the group in no financial obligations; only my

    immediate collaborators, consisting of not more than four people, receive any remuneration. Apart

    from the cost of running the office, the expenses consist mainly in covering the cost of meetings of the

    Steering Committee and of international conferences. It must be added, however, that the hospitality at

    these conferences is always offered by the host country, while the cost of the work of the secretariat,

    simultaneous interpretation, translation, printing, etc., is borne by the international secretariat. The total

    expenditure therefore is small and has so far been covered completely by private subscriptions. Thus

    the money received or spent has no strings, political or otherwise, attached to it. Most of the year 1952

    was spent in private consultations between two or three people. A first meeting was held in Paris on 25

    September 1952 and was attended by all the original members of the group: Prince Bernhard of the

    Netherlands, Mr. Hugh Gaitskell, Sir Colin Gubbins, M. Guy Mollet, Dr

    * How and when the non-European personalities, especially the American, joined our group will be explained later.

    Rudolf Mueller, M. Antoine Pinay, M. P. Pipinelis, Dr J. H. Retinger, Mr. Paul Rykens, and M. Paul van

    Zeeland. The only two who could not attend were Lord Portal and Signor de Gasperi. At this meeting we

    discussed what could be done to improve American-European relations and on the initiative of M. van

    Zeeland we decided to set up a corresponding group in the United States.

    In November 1952 I went to the United States. Soon afterwards came H.R.H. Prince Bernhard and,

    finally, M. van Zeeland. We approached certain members of the Democratic administration which was

    still in office. Mr. Averell Harriman was especially interested in this work, but of course the new

    administration had to be consulted and, on the advice of members of the Truman administration, we

    approached Republican leaders. H.R.H. Prince Bernhard, M. van Zeeland and myself contacted a large

    number of Americans of both parties and their reaction was always very good. Owing to the change of

    administration and for other practical reasons, it took some time to form an American group. Finally,

    however, through the good offices of Mr. C. D. Jackson and Mr. John Coleman, an American group was

    constituted and it was decided to call a conference which actually took place in Bilderberg from 29 to 31

    May 1954.

    Later on Mr. Coleman was obliged, on account of illness, to retire from the chairmanship of the

    American team and was succeeded by Mr. Dean Rusk. It was thought useful to appoint an American

    honorary secretary, who was, and still is, Mr. Joseph E. Johnson. During the four years which followed,

    other countries were invited to join in our work and participants from the following European countries

    have been present at our meetings: Austria, Belgium, Denmark, France, Germany, Greece, Italy, the

    Netherlands, Norway, Portugal, Sweden, and Switzerland. From outside Europe, apart from Americans,

    we have had at our conferences personalities from Canada, Australia, New Zealand and Pakistan. So far

    four plenary conferences have been held:

    1 Bilderberg, Oosterbeek, Holland 29-31 May 1954

    2 Barbizon, France 18-20 March 1955

    3 Garmisch-Partenkirchen, Germany 23-25 September 1955

    4 Fredensborg, Denmark 11-13 May 1956The themes discussed were: The attitude towards

    Communism and the Soviet

    Union. The attitude towards dependent areas and peoples overseas.

    The attitude towards economic policies and problems. The attitude

    towards European integration and the European Defence

    Community. Communist infiltration in various Western countries.

    The Uncommitted Peoples:

    (a) political and ideological aspects;

    political and ideological aspects;

    (b) economic aspects.Article 2 of the North Atlantic Treaty. The political and strategic aspects

    of atomic energy. The reunification of Germany. European unity. The industrial aspects of atomic

    energy. Economic problems:

    (a) East-West trade.

    (b) The political aspects of convertibility.

    (c) Expansion of international trade. The causes of the growth of anti-Western blocs, in

    particular in the United Nations. The role played by anti-colonialism in the relations between Asians and

    Westerners. A common approach by the Western world towards China and the emergent nations of South

    and

    East Asia.

    The Communist campaign for political subversion or control of the newly emancipated countries of

    Asia.

    How best the West can meet Asian requirements in the technical and economic fields.

    A Steering Committee was formed from the original founders of the group, in which the Americans

    mentioned above now participate. Subjects which do not need a long preparation as far as papers to be

    presented are concerned, and for which an attendance of fifteen to twenty people seems sufficient, are

    discussed from time to time in this smaller group.

    Since the group is not a policy-making body, its principal object being to smooth over difficulties

    between Western Europe and the United States with a view to improving their mutual relations, together

    with difficulties among European countries or even certain extra-European countries, it would be

    impossible to define what the group has achieved. We certainly provide a meeting-place for various

    distinguished personalities having authority in their own particular fields of action. We have found that

    an exchange of views is very helpful, and may sometimes produce new ideas, and that in a way the group

    may be a factory of initiative. We decided, however, that none of the new ideas and initiatives would be

    developed by the group, but that they should be passed on to some persons or organization who could

    further develop them.



  • Bilderberg meeting report Aachen, 1980

    Bilderberg meeting report Aachen, 1980

    From Wikileaks

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    May 7, 2009
    Summary

    This document presents the meeting report for the Bilderberg meeting of 1980, that took place from April 18-20 at the Dorint Sofitel Quellenhof in Aachen, Germany.

    The Bilderberg Group, Bilderberg conference, or Bilderberg Club is an "off the record" meeting of around 130 transatlantic political and military leaders, business and banking executives, royalty and other power elites. It has been meeting annually since 1954. Despite its influence on postwar history, which arguably eclipses that of the G8 conference, it does not not have a web site and nor does it publicly release records of its meetings.

    This year's meeting is stated to be in Greece from 14 May 2009-16 May 2009.

    For background on the group's activities, see this BBC radio 4 report and this Asia Times article.

    The documents in this series were housed by Dynbase, a subscription only biographical, genealogical, and organizational database, which became defunct in 2006.

    The password lock 'dynbase' has been removed from most of the files by WikiLeaks.
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    Netherlands
    International organization
    Bilderberg Group
    Series
    File size in bytes
    4048562
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    PDF document, version 1.6
    Cryptographic identity
    SHA256 f74f6a76e64dd4007621b2e64d841303ec6d64dd2ee0fe114842c70830e4932d

  • Bilderberg meeting report Cannes, 1963

    Bilderberg meeting report Cannes, 1963

    From Wikileaks

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    May 7, 2009
    Summary

    This document presents the meeting report for the Bilderberg meeting of 1963, that took place from May 29-31 in Cannes, France.

    The Bilderberg Group, Bilderberg conference, or Bilderberg Club is an "off the record" meeting of around 130 transatlantic political and military leaders, business and banking executives, royalty and other power elites. It has been meeting annually since 1954. Despite its influence on postwar history, which arguably eclipses that of the G8 conference, it does not not have a web site and nor does it publicly release records of its meetings.

    This year's meeting is stated to be in Greece from 14 May 2009-16 May 2009.

    For background on the group's activities, see this BBC radio 4 report and this Asia Times article.

    The documents in this series were housed by Dynbase, a subscription only biographical, genealogical, and organizational database, which became defunct in 2006.

    The password lock 'dynbase' has been removed from most of the files by WikiLeaks.
    DOWNLOAD/VIEW FULL FILE FROM
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    Bilderberg Group
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    File size in bytes
    129161
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    Cryptographic identity
    SHA256 38370f8343f8edc539f529eb45db5f8cdbfa609d2a7d8bb5dfe84800c85b5514
  • BILDERBERG MEETINGS
     
    CANNES CONFERENCE
     
    29-31 March 1963 (Participant list has been moved to a separate file)
     
    INTRODUCTION
     
    The twelfth Bilderberg Meeting was held on 29, 30 and 31 March 1963 at the Hotel Martinez, Cannes (France) under the chairmanship of H.R.H. the Prince of the Netherlands.
     
    Participants numbered ninety and represented the United States, Canada and fifteen
    European countries together with various international organizations. They were drawn from
    among political leaders (members of governments and parliamentarians) and leading figures in
    business, journalism, the civil service (national and international), the liberal professions and
    trade-union organizations.
    In accordance with the rules of procedure adopted at each meeting, all participants spoke on
    an absolutely personal basis without committing any government or organization to which
    they might belong. In order to facilitate complete frankness, the discussions were confidential
    and no representatives of the press were admitted. A short press release in which the
    Chairman's was the only name mentioned was distributed beforehand but no further release
    was issued at the conclusion of the meeting.
    Three items were included on the Agenda:
    I - The balance of power in the light of recent international developments.
    II - Trade relations between the U.S.A. and Europe in the light of
    the negotiations for Britain's entry into the Common Market. III -
    Trade relations between the Western world and the developing
    countries (tariffs, quotas, commodity arrangements, etc.). Ad. I This
    item will cover changes in power relations—political, economic and
    military— between the Communist and Western countries and inside
    each group.
    On account of developments subsequent to the preparation of this agenda (particularly the
    collapse of the Brussels negotiations between Britain and the E.E.C.) and the close connexion
    between this fact and items I and II, the Chairman asked participants:
    - in dealing with item I to give preference to the subject of the political and military
    relations existing between the Western allies without thereby excluding certain current
    economic-political problems which have arisen as a result of the failure of the Brussels
    discussions;
    - in dealing with item II, to concentrate on future prospects, more especially in regard
    to the "Kennedy Round" and certain specific problems such as the co-ordination of
    agricultural policies.
    Since certain participants were absent when the meeting opened, item III was dealt with first
    although various participants returned to this item during the last session. The original order of
    the various items has been adhered to in the present text.
    In accordance with another of the Bilderberg Meetings' rules, aimed at preserving the
    confidential nature of the discussions, none of the participants is mentioned by name in the
    present report.
    I. THE BALANCE OF POWER IN THE LIGHT OF RECENT INTERNATIONAL
    DEVELOPMENTS
    In the course of a preliminary note, H.R.H. the Prince of the Netherlands had suggested that
    participants should concentrate more particularly on a consideration of the following
    questions:
    -What impact will the growing strength of Europe have on the relations between the U.S.
    and Europe in world affairs: competition, cooperation or partnership? What are the conditions
    for a partnership?
    -Is the idea of a multilateral or multinational nuclear force an answer to the troubles of the
    Alliance? What exactly does it mean? How is the problem of the ultimate political control of
    such a force to be solved?
    What is the relevance of this concept to the current general disarray of the alliance?
    Participants particularly qualified to discuss the matter were also asked to give their views
    on the recent Franco-German treaty and on its role within the Common Market and the
    Atlantic Alliance.
    A written note had previously been drawn up by an Italian participant who referred to its
    main lines of argument in addressing the meeting.
    The failure of the Russian bluff over Cuba, wrote this participant, demonstrated,
    a) that there is a balance; at an extremely high level of destruction, between the military
    potential of the United States and the USSR;
    b) that Khrushchev recognises this fact and that, whatever he may say in public, he is
    prepared to accept the consequences of this balance. There was therefore reason to hope that
    "peaceful co-existence", without open hostility, would continue for some time. This balance,
    argued the author of the note, was entirely based on the American deterrent independently of
    other national forces. At the same time, the conflict was continuing on the ideological level
    and it would be ill-advised for the moment to hope too much from the Russo-Chinese
    disagreements, however deep, all the more since the lack of unity within the Western world
    was also real and serious. The most important question in this connexion was that of American
    leadership. For his own part, the author of the note was in favour of accepting such leadership
    unreservedly: it was, he wrote, a fact of existence, if only because America spends four times
    as much on arms as all the other members of NATO combined. It followed that American
    leadership, based on the only real deterrent force against the USSR, constituted NATO's
    cornerstone, notwithstanding European recovery on the economic level. True, arrangements
    could and should be found to render that leadership as little burdensome as possible but to
    reject it purely and simply could only create a dangerous neutralism, especially if it took the
    form of a sort of "anti-colonialism" directed at America.
    The author went on to discuss the circumstances surrounding the recent breakdown of
    negotiations between the United Kingdom and the E.E.C. and expressed his bitter regret
    concerning them. The breakdown, he said, was a blow from which European integration might
    never recover. True, the French rejection was delivered in accordance with the provisions of
    the Rome Treaty which calls for unanimity among governments of the Community as regards
    the admission of new members but it ran counter to the only line of action which would enable
    genuine European union to develop, namely compromise between the wishes of the various
    European countries, each being merely a part of a greater whole. The author of the note
    considered that what was still more serious was the fact that, at his press conference, General
    de Gaulle should have let it be understood that the choice was not between Paris and London
    but between Paris and Washington, on whose behalf Great Britain would have played the role
    of "Trojan Horse" within the Common Market. In actual fact, he wrote, on the basis of their
    attachment to NATO and their acceptance of American leadership, Italy and the Benelux
    countries might equally well be considered as "Trojan Horses".
    The author of the note concluded by emphasising that the Soviet threat remained as real as
    ever and that, given Khrushchev's skill in exploiting divisions within the Western camp,
    complete unity was more than ever essential.
    Discussions on this item of the agenda revealed that the meeting could generally adhere to
    the concepts advanced by the author of the note in respect of the need to remain loyal to
    NATO and to accept American superiority as a fact; considerable divergences of opinion
    became apparent, however, in regard to the application of those postulates now and in the
    future. A large number of speakers took up the criticism of the policy of the present French
    government which seemed, directly or indirectly, to have inspired the note. One of the French
    speakers observed that many of his compatriots, like himself, only partially supported General
    de Gaulle's European and Atlantic policy and, more especially, the methods sometimes
    employed by the President of the Republic. Nonetheless, in his view, it would be a mistake not
    to avoid any reprisals or controversial statements likely to harm French national prestige. If
    pressure were considered necessary, it should be applied in the form of understanding and
    friendship. Other French speakers argued on similar lines. A British speaker wished to
    dissociate himself from certain criticisms levelled at the General whom he considered a great
    man, a great Frenchman and even a great European.
    The persistence of the Soviet threat emphasised in the note was raised by several
    participants during the discussion. A British speaker, supported by a German participant,
    defined the policy of the USSR as follows:
    -not to maintain the existing balance but to tip the scales in favour of the USSR;
    -for this purpose, to exploit every opportunity provided by the West. Khrushchev had
    merely recognised that this needed time. At the present time, moreover, given the fact that the
    situation in Cuba, the Middle East and Africa, not to mention China, was not very favourable
    from his point of view, his primary objective remained the Western countries: Berlin was still
    Khrushchev's main concern, especially if one bore in mind his apprehension regarding the
    possible provision of nuclear weapons to the Federal Republic. The German speaker did not a
    priori include Cuba in the list of Russian defeats; it was rather that Khrushchev had wanted to
    avoid full-scale conflict in an area where the military conditions were particularly
    unfavourable from his point of view. At the present time Khrushchev considered Cuba as a
    political bridgehead. In the German speaker's opinion, the danger still lay in Berlin.
    The uneasy situation currently prevailing within the Atlantic Alliance was generally
    recognised and a very large number of speakers sought to analyse the causes and the
    symptoms on both sides of the Atlantic. What are the features of the Atlantic crisis? Several
    participants attempted to define them and to recommend steps to eliminate them.
    The main elements brought out in the course of the discussion may be listed as follows
    although the same discussion revealed that they were closely interconnected :
    -the failure of the Brussels negotiations,
    -the doubts sometimes expressed in Europe as to the United States' determination to use
    their nuclear deterrent in support of their allies in the event of war;
    -the lack of balance between United States' nuclear power and the forces of its European
    partners and, as a result, the problems arising from American leadership;
    -the French determination to create an independent nuclear force and the resulting
    apprehension that "dissemination" and even "proliferation" of nuclear weapons might take
    place;
    -the divergences between the allies as to the formulas whereby the NATO Treaty might be
    improved, if necessary, more especially as regards the supreme control of nuclear weapons.
    Although the breakdown of the negotiations for Great Britain's entry into the European
    Economic Community which followed on General de Gaulle's press conference of 14 January
    1963 was more specifically the subject of item II of the Agenda, several participants raised the
    matter as early as this stage of the discussions in connexion with the uneasy situation within
    the Atlantic Alliance. Recent happenings in Brussels had caused extremely sharp
    disappointment in the United States and the point was emphasised by several American participants
    who considered that the Atlantic Alliance had suffered a blow, all the more serious in
    that it was inflicted by allies. Several of the American speakers observed that Europeans
    perhaps failed to appreciate to the full the radical break in the United States' former traditions
    which that country's adherence to NATO represented. That adherence had now been accepted
    by all sectors of American public opinion (including those who were previously the most
    traditionally isolationist, e.g. the farm voters of the Middle West) and support for the
    organization had taken on an almost religious character which made any blow administered to
    it all the more serious. There was a great desire to achieve real unity with Europe, including
    Great Britain, via the Trade Expansion Act. There was a danger that the Brussels failure would
    render that long-term policy illusory and the French decision struck the American public as a
    refusal to recognise any entity superior to the nation or even to recognise a greater common
    denominator. The American public saw this as a return to isolationism, a European cartelism,
    and was profoundly disturbed.
    While all the European speakers discussing the failure of the Brussels negotiations
    recognised its harmful consequences for the Atlantic Alliance, there were some who showed
    themselves anxious to reduce the question to narrower proportions. A French speaker, for
    instance, considered that two problems had been confused:
    -a political problem in that the original purpose in creating "the Europe of the Six" had been
    to enable Germany to recover its place in the concert of nations without at the same time
    recovering all the elements of national sovereignty so that transfer of these to a higher
    community became necessary. At the time, this policy had been opposed both by the British as
    a whole and by General de Gaulle's supporters;
    - an economic problem arising at the Atlantic level and which should not therefore be
    presented in terms of Great Britain's adherence to the Common Market. There was, in this
    speaker's view, no contradiction between a politically integrated Europe—even limited to six
    members—and an Atlantic world co-operating closely in the military and economic fields.
    A Belgian participant described the 14th of January as the free world's ' 'black Monday"
    and, more specifically, felt that the method adopted by the French government was
    inadmissible because of its unilateral nature. Emphasising the community quality of the
    Europe to be built, implying a spirit of solidarity which went beyond individual nations, this
    speaker advanced the view that French diplomacy no longer believed in this concept and
    preferred to confront its partners with a fait accompli.
    But a French participant belonging to the government majority group replied that the
    cessation of European construction dated back rather to 17 April 1962 when the "Fouchet
    Plan" was rejected, a plan which represented an initial stage in that it provided for periodical
    meetings between governments, a clearly-defined organization covering defence and foreign
    and cultural policy which may have been modest but which could have been the embryo of a
    greater organization. The French attitude in January 1963, said the speaker, was solely due to
    the fact that it was impossible for Great Britain to accept all the conditions of the Rome
    Treaty. The building of Europe meant accepting one's share of the responsibilities and
    burdens.
    Addressing the meeting again towards the close of the discussion, the Belgian speaker
    emphasised that, as a supporter of an integrated Europe rather than of a simple alliance, he
    considered British participation in the European institutions vital since French opposition
    made the former formula impossible.
    A British participant, supported by various other speakers, considered the Brussels
    breakdown to be the result of a combination of factors rather than of the French Government's
    attitude alone and that the responsibility should not be attributed exclusively to the President
    of the Republic. With the support of other speakers in the subsequent discussions (see item II
    of the agenda), he argued that it was above all essential to avoid any policy calculated to
    hinder Great Britain's association with Europe when the time came. A number of American
    participants considered the contention that their determination to intervene on behalf of their
    allies was any less than in the past to be utterly without foundation. In particular, they stressed
    the extent of American forces in Europe and the importance of their country's financial
    contribution to joint defence. Nearly 400.000 American troops were stationed in Europe, some
    of them accompanied by their families, and this demonstrated the permanent nature of their
    commitment, although the North Atlantic Treaty had been "sold" to the American public
    without any implication that American ground forces would be stationed in Europe under it. In
    this respect, actions had outstripped commitments, just as the United States had already
    intervened in two world wars without having previously committed itself to do so. The
    American attitude had always been governed by long-term considerations without regard to
    the circumstances of the moment. Similarly, on the financial level, military expenditure had
    continued to be extremely heavy; at the present time, 60 cents out of every dollar of public
    funds went to defence. Must the United States go bankrupt, asked one speaker, in order to
    convince its European friends? Many U.S. congressmen would be only too happy to see
    Europe take over the defence of Europe, if only to save the three billion dollars which it cost to
    maintain American troops on the Continent. In fact, however, not one American congressman,
    even though all would one day have to seek re-election, queried the commitments entered into
    with America's allies. An American speaker also commented that continued European
    suspicion of American promises might eventually bring about a swing in United States public
    opinion which would have regrettable consequences.
    A French participant, supported by a Belgian participant, a German speaker and a British
    participant, condemned all and every display of suspicion concerning American determination
    to remain in Europe: to question that determination, he said, almost amounted to clearing the
    way for such an eventuality.
    Another French speaker occupying an independent position observed, however, that
    allowance must be made for strategic evolution which, within a few years, might deprive the
    presence of American troops in Europe of any meaning, especially if the concept of "fortress
    America" which was already suggested by the present development of Polaris and Minuteman
    missiles were to become a reality. The Soviet Union might be tempted to confront the West
    with challenges which it would seem irrational to answer with nuclear methods and many
    Frenchmen, and even other Europeans, feared that the United States might consider a threat to
    the Europeans as not necessarily a threat to itself. This did not signify suspicion. Within such a
    context, English and French efforts might be seen as an attempt to find a sort of "European
    parachute" to be used in the event that the Alliance did not immediately operate.
    Another French participant, already mentioned, and an advocate of the national strike
    force, denied that he had the slightest doubt as to the deter mination of the present
    American presidential team. But was it always possible, he asked, to foresee the future?
    And should not the confidence which the Americans sought be reciprocal?
    The disproportion between the contribution of the United States to joint defence and that
    made by its partners was likewise recognised by a British participant as a source of uneasiness
    on the European side; such a disproportion could not continue indefinitely. This point was
    expanded on by the French participant just referred to: when NATO was conceived, he pointed
    out, the imbalance was in accordance with reality because of America's monopoly in the
    atomic field—a field which, however, had nothing like the importance which it now
    possessed. Since then, Europe had achieved a spectacular "recovery" and the feeling was
    developing that the Alliance must be "rebalanced" and Europe strengthened in close cooperation
    with America. But the United States wanted to maintain its monopoly, not only as
    regards manufacture of nuclear weapons but also as regards the decisions concerning them.
    America was especially apprehensive that it might be drawn into a conflict through error or
    some rash action. Accordingly, said this speaker, everything proposed by America— a
    multinational or even a multilateral force—seeks to convey the impression of a certain sharing
    of responsibility while retaining the sovereign right "to press the button" and it was this
    approach which France opposed. In addition, the speaker continued, it is not desirable that the
    Alliance should seek to restrict the efforts of the Europeans to the "conventional" field by
    allotting them, as it were, the role of "footsloggers". Finally, at the present time, the military
    effort in the nuclear sector conditioned, so to speak, however regrettable this might be, the
    development of an atomic industry—a field in which the lack of balance is also very
    pronounced.
    In reference to the United States' "over-kill capacity" which had previously been cited by a
    German participant as the main element in preserving world peace, an American participant
    emphasised that the best deterrent was the one which was "technically" capable of ensuring
    victory and that it was vital to avoid under-estimating the capacity of the U.S.S.R., whether in
    the nuclear or conventional field. In order to cover all objectives within the minimum space of
    time, maximum capacity was essential. Arguing along similar lines, a Turkish participant
    considered that this superiority constituted the best deterrent force available within the
    Alliance and that, if this was a fact, it was erroneous to pretend that the United States thereby
    imposed its will on its allies within NATO. This point was also taken up by a Belgian
    participant who contended that if the Americans could be blamed for anything it was not
    because they had not applied their leadership with sufficient consistency and force (criticism
    of this leadership, a German participant observed, often reflected a Maurras-type nationalism)
    since there was no example of the United States having sought within NATO to impose a
    resolution with which the other member countries refused to associate themselves.
    A British participant asked whether it was certain that Europe was ready to assume all its
    responsibilities, more especially of a financial order, to establish a genuine balance with the
    United States? At the present time, it would seem not.
    Returning to the problem of the relation between nuclear forces and conventional forces in
    NATO strategy which had been raised by a German participant, two speakers from that
    country emphasised that "flexibility" in the choice of possible reprisals was essential. A
    defence system which only had nuclear forces available would find itself in the position of a
    policeman with nothing but a sub-machine gun to preserve order. It was up to the allied
    powers to make their contribution in those complementary fields where inadequacies were
    apparent. On the other hand, said one of these speakers, if we invest too much in conventional
    arms (which is not the case at present in Europe) we run the risk of weakening the "credibility"
    of our deterrent force.
    While not denying that the Alliance was confronted with various problems, an American
    participant contended that, on the basis of its practical operation, its balance-sheet was a
    positive one and that substantial progress had been made since 1949. In discussing the
    American nuclear monopoly, it should be remembered that this only applied to the possession
    of such weapons. The speaker referred to the plans which had been drawn up to allow for the
    use of nuclear and conventional weapons alike and pointed out that such plans had been made
    by an integrated inter-allied team comprising virtually all member nations. Similarly, SHAPE,
    an organization possessing a regional structure, received its orders from the "Standing Group"
    which, in turn, was governed by the NATO "Military Committee" in which the political lines
    were laid down by 15 nations. The military command merely applied these directives. The
    plans, drawn up with great care in order to conform to those directives, were designed to meet
    two primary considerations:
    -to ensure adequate control, especially involving avoidance of premature use of atomic
    weapons without orders from a higher level, this being a political element of key importance;-
    to ensure, in the nuclearfield, an adequate and sufficiently rapid reprisal policy.
    The danger of a proliferation of national nuclear weapons was raised by certain speakers in
    connexion with the French government's decision to create an independent deterrent force.
    A French participant, already mentioned several times and who set himself the task of
    explaining the policy of the French government at this juncture, outiined and defended the
    reasons underlying this decision. Apart from the considerations already mentioned above
    (uncertainty as to the future, the American monopoly, the necessary development of a nuclear
    industry), the French government considered that any nuclear force should be subject to a
    political authority which, for the moment, is national in nature since only national States can
    assume the crushing responsibility of using it. It might one day be possible to envisage a
    supranational force but this was not a reality as of now. Nor did France wish to place its
    defence (i.e., having regard to possible future developments, its whole destiny) in any other
    hands but is own. In this respect, the French followed exactly the same reasoning as the
    British. Why, asked the speaker, should something which was good for the British be bad for
    the French? France, too, wished to be able to play a deterrent part. Another reason why a
    nuclear force was necessary was that it enabled the smaller countries to "weigh more heavily
    in the scales" as regards political and military affairs. It was impossible to speak of
    dissemination in this connexion, said the speaker, since the French government could not, as
    certain observations might have suggested, be compared to some sort of potentate or "Fuhrer"
    threatening world peace. Such dissemination, moreover, had already begun and might progress
    still further tomorrow without the United States being in a position to resist it. Furthermore,
    the policy in question was one which had reached a point of no return and had already been
    initiated by the leaders of the Fourth Republic.
    The fact remained, said an American participant, that the proliferation of nuclear weapons
    constituted a real danger since the possible launching of even one or two missiles could
    unleash a nuclear holocaust. In this connexion, there was a tendency to think of nuclear
    weapons as a mere extension of conventional weapons whereas the reprisals which the former
    might provoke, could not be limited to a specific region but could immediately extend to the
    whole Western world. This latter point was likewise emphasised by another American
    participant.
    A Netherlands participant stressed that the European countries could not wait and do
    nothing but must take steps to promote the Atlantic partnership by strengthening Europe. But
    how could action be taken if there was the permanent possibility of veto by a single nation?
    The speaker insisted that Western defence could not be guaranteed by a juxtaposition of
    national nuclear powers. The question was whether we were going to build an organization for
    peace on national rivalry between sovereign states and therein lay the responsibility of our
    generation.
    A Belgian speaker, already quoted, regarded the French decision to acquire an independent
    nuclear force as the real cause behind the breakdown of the Brussels negotiations (because of
    the position adopted by Great Britain in the Bahamas) and expressed vigorous opposition to
    that decision. The principles which had governed Western policy for fifteen years past were
    being challenged and this seemed to be due to France's determination to possess an independent
    nuclear force. What political hypothesis, he asked, was satisfied by the idea of a national
    nuclear force? It was impossible any longer to imagine Russia launching an attack on
    individual European countries. There could no longer be anything other than a world war in
    which the United States would be involved on the first day, so that the fate of the world would
    be decided primarily in Washington; individual national defence was no longer a possible
    military position. On the other hand, said the speaker, the French force could not provide
    France's allies in continental Europe with the guarantees offered by the United States
    deterrent.
    A British participant argued that the question was not whether France would have a nuclear
    force or not but what that country would do with it. In the absence of increased consultation
    within NATO, certain anxieties might develop. Again, while the dissemination of nuclear
    weapons may have begun, that is not a reason for ceasing to oppose it, if only in order to
    enable a genuine agreement on disarmament to be reached eventually. In this connexion, it
    was noteworthy that the USSR had refrained from supplying nuclear weapons to its satellites.
    A French participant observed that France wished its European allies to play the very role
    which France herself refused to play vis-a-vis the United States. He considered, however, that
    Britain, on its side, should become more "European".
    Another French participant who did not wish to exclude the possibility of a revision of
    NATO in an atmosphere of confidence, emphasised that the main danger of French nuclear
    armament (apart from its effect on the country's economy and currency) 1 ay in the breach of
    free world solidarity. Such solidarity must be maintained at all levels if we wanted to defend
    Western civilization. A German and an Italian participant spoke along similar lines and
    stressed the highly alarming nature of the present situation. The latter also expressed his
    concern at a certain anti-Americanism, a certain desire for neutralism, certain notions of a
    direct compromise with Russia which could be attributed to the President of the French
    Republic. France's partners, said this speaker, must not be forced to choose between Paris and
    Washington. During the discussion, speakers analysed at length the factors in the present crisis
    but at the same time they sought solutions which would make it possible to face upto the
    situation and bring about a smoother operation of the Atlantic Alliance. The problem of the
    Alliance was set forth by a German participant as that of "national security through collective
    defence" as opposed to "collective security through national defence". Efforts to achieve
    integration should not only be continued but extended still further: in fact, NATO was only an
    improved military coalition. It was paradoxical that we should have an integrated operational
    command but, on the other hand, should not have such integration in the logistic sector. The
    same applied to the manufacture of weapons where research, testing and production were
    uselessly split up, this being equally harmful in regard to the quality and cost alike. The
    speaker wondered how the desire to possess national nuclear forces could be explained: was it
    a ques-tion of prestige or of a wish to wield more influence or of suspicion of the United
    States—a suspicion which, in the speaker's view, was unjustified. After stressing Germany's
    determination to hold aloof from national nuclear weapons, the same speaker expressed the
    view that national sovereignty had become out-moded and that the concept of a "European
    Third Force" was unrealistic. In actual fact, he said, two concepts present themselves:
    -an Atlantic Community based on two elements, i.e. America, on the one hand, and, on the
    other, Europe as the "second pillar"; this was a highly desirable formula but pre-supposed an
    integrated Europe with a central authority controlling nuclear weapons—a situation which
    required time to achieve;
    -an integrated Atlantic society with common institutions. Here again, time was needed but
    an effort must be made forthwith to achieve a common policy instead of merely issuing
    communiques alluding to a "common denominator".
    The French speaker already referred to as the defender of the French government's policies
    cited the superiority of American power and the solidity of the Atlantic pact as factors
    essential to the equilibrium of the international situation but he likewise cited the regional
    nature of the Atlantic Pact and the fact that it concentrated too strictly on the military aspect as
    examples of its present weaknesses. If confronted with global aggression, he argued, the
    NATO powers must be able to devise a global strategy and similarly reach agreement on
    questions outside the Alliance's regional framework, e.g. the Congo, New Guinea or the Near
    East. Moreover, in order to obtain stronger support from public opinion, it would be desirable
    for the Pact to concern itself with the economic and cultural fields as well. The same speaker
    was opposed to the American nuclear monopoly and the lack of balance in the Alliance and
    stressed that the French deterrent was not aimed at destroying the Pact nor at creating a
    "European Third Force". Neither neutralism nor anti-Americanism was involved nor was
    there any desire on the part of France to see a Europe independent of the Community. France
    could only benefit from co-ordinating its action with that of its allies, more especially as
    regards the distribution of strategic objectives and roles. On the other hand, France did not
    wish to see its strength submerged in a denationalized entity and it was for this reason that
    France did not support the concept of a multilateral force as suggested at Nassau, a force
    which would be deprived of nuclear warheads, provision of which would depend on American
    goodwill.
    Replying to the previous speaker, an American
    participant set out his country's aims as follows: -to
    encourage a strong Europe and hence to encourage
    its economic and political
    integration;
    -to create and strengthen arrangements facilitating increased Atlantic co-operation.
    The nuclear defence of the West is indivisible: the defence of Europe is vital to the United
    States, the defence of Europe depends on the American deterrent. Because of this, the United
    States commitment was of a permanent nature, as demonstrated by the presence of thousands
    of Americans based in Europe. Having expressed these convictions, the speaker went on to say
    that it was necessary to take joint action to maintain the stability of our economies, to
    strengthen our military potential and to increase our assistance to new nations, more especially
    to keep them out of the grasp of the East. In discussing the difficult problem of the control of
    atomic weapons, a difficulty arose which had already been mentioned by a German
    participant: technology had gone so much further than had the traditional arrangements
    between sovereign states that it was important to find new institutional methods for exercising
    our power over the terrible weapons available to us. There were three possibilities in regard to
    that power of control:
    -leave things as they were, relying on the United States in the hope that the situation would
    not change. This implied an increased dependence of the free world on the United States and
    did not take account of the present British potential nor of the future French potential;
    -let things follow their course, more especially as regards the French force and its influence
    on the latent desire of certain other countries to possess their own nuclear force, with the
    consequent danger of proliferation already mentioned; to consider NATO as an atomic power
    in its own right and hence establish, at any rate among certain of its member countries, joint
    possession of certain nuclear devices with power of decision being held on an equal footing.
    The speaker considered this solution as the only one possible, given that Europe had not yet
    reached a stage where it could speak with a single voice, and such was the line of the present
    proposal for a multilateral force which represented an effort, however imperfect, to utilize
    national potentials and enable all the countries concerned, even if they had no nuclear potential
    of their own, to participate in their own defence in this field.
    To make a choice in favour of a multilateral force was not, the speaker went on to say, an
    easy matter since the objection to "several fingers on the trigger" still remained (and this
    applied to an Atlantic and a European force alike, so long as the latter failed to delegate power
    to one person) but that objection applied still more cogently to a juxtaposition of national
    forces with "several fingers on several triggers" and a consequent increase in the dangers of an
    "accident". Again, the creation of a multilateral force would enable the United States' partners
    to share America's experience in the management of such a force and the speaker expressed
    the hope that in these circumstances the various countries would not insist any longer on the
    possession of a nuclear force.
    A British participant analysed in similar terms the various possible formulas for emerging
    from the present situation which he described as one dominated by "psycho-pathological"
    elements: a critical lack of confidence on both sides of the Atlantic, a profound anxiety
    resulting from the fact that the Soviet capacity to retaliate to an American atomic attack would
    lessen the credibility of the American deterrent.
    Three possibilities were open to us: -each ally to possess its own
    nuclear force: such a formula, said the speaker, was irrational and
    a cause of division within the Alliance;
    -a multinational force from which each member could withdraw if need be. This solution
    was likewise unacceptable since it involved discrimination in favour of those members of the
    Alliance with a lead in the technical field which, the speaker reminded his audience, included
    the means of delivery;
    -a multilateral force but this would only be genuinely multilateral and retain all its
    "credibility" if it excluded any possibility of a United States veto on its use. This would not be
    easy in practice, if only because such a concession would involve the danger of increasing the
    United States liabilities out of all proportion to its interest in the joint defence of Europe.
    The best practical solution would therefore consist in giving the European members greater
    say in the use of the deterrent by increasing their knowledge in this field and intensifying joint
    consultation. To achieve this, said the speaker, institutional arrangements were not enough and
    mutual confidence was a vital element. Interdependence must operate in both directions. A
    Turkish participant devoted most of his statement to this psychological aspect of co-operation
    between allies and expressed relative optimism. He suggested three approaches to prevent
    current problems from becoming harmful to NATO:
    -elimination of any factors contributing to the "dramatization" of these problems;
    -making allowance for the pride and susceptibilities of all parties;
    -ensuring as far as possible that the various problems do not influence each other.
    As a number of other participants had already emphasised, it was certain that NATO must
    evolve. There had already been a considerable degree of evolution since it was set up: Greece
    and Turkey, followed by Germany, had joined its ranks. International problems which it was
    once considered impossible even to touch on in the NATO Council were now the subject of
    detailed examination. Much remained to be done and, in world affairs, members would have to
    achieve a certain harmony if absolute solidarity proved impossible. In this connexion, it was
    noteworthy that the machinery for consultation was gradually being perfected. In short,
    repeated the speaker, NATO's shortcomings should not be dramatized by being represented as
    utter incapacities.
    This relative optimism was not shared by a Belgian participant, already quoted several
    times, who recalled the recent American proposals to give a worldwide character to
    consultation within NATO, to set up an atomic committee in NATO and, finally, to institute
    multilateral, multinational or interallied nuclear forces. Such proposals, he contended, had
    been received by Europe with hesitation and contradictory reactions. True, the proposals had
    varied but the United States awaited a gesture from Europe indicating that there was a
    readiness to accept them.
    The European countries' great desire to be associated with nuclear strategy (a desire which
    was met by the American proposal for a NATO force) and their anxiety to avoid being
    excluded from research concerning atomic energy and delivery systems were entirely
    legitimate but the methods of satisfying such aspirations should be discussed within the
    framework of NATO and it was reasonable to fear that no such discussion would take place
    until agreement was reached on the key principle of the indivisibility of free world defence.
    And it was France's voice above all which was awaited in vain in the international institutions.
    In a subsequent statement, the same speaker returned to the question of consultations within
    NATO. Such consultation, he observed, was valueless when it merely consisted of one country
    informing its allies of a decision which had already been taken—and doing so only a short
    time before informing the public at large. What was important was to decide whether
    consultation could or should lead to a joint decision. Views on this point varied. Was France
    ready, asked the speaker, to accept a system allowing such decisions to be reached even when
    it found itself in a minority? The speaker listed the following guiding lines: reaffirmation of
    honest collaboration with the Anglo-Saxon-world and, in particular, America; the indivisible
    nature of defence; discussion of different problems within NATO; loyalty to the Alliance and
    the European Community as originally conceived.
    A French participant who had occupied a high position in a previous French government
    discussed the psychological and institutional aspects of the problems confronting the alliance,
    problems of "growth" involved in adapting to new situations, sometimes complicated by the
    inertia with which certain legitimate claims had long been received. In consequence,
    governments must show imagination.
    For example, it was normal that 200 million Europeans should wish to take part more
    effectively in the direction of world affairs and that America's allies should wish to extend
    their research and their activity in the nuclear field since the Atlantic Pact had never been
    described as implying an American nuclear monopoly: France and England would never have
    accepted such an arrangement. Atlantic institutions must accordingly be adapted to those
    aspirations. Given the immense danger involved in the dissemination of atomic knowledge and
    weapons, would not the United States, asked the speaker, show its leadership in discussing
    with its allies ways of limiting that dissemination and of adapting national programmes to the
    demands of the Alliance? In this connexion, the present proposal for a multilateral force gave
    a certain impression of improvisation which was not reassuring. A serious and considered
    analysis in these fields would dispel many anxieties and suspicions, even if no final solution
    were immediately forthcoming. Naturally, an open-minded attitude on the part of the United
    States in these fields should find its counterpart on the other side of the Atlantic: Europeans
    should agree to carry a greater share of the joint burden, including assistance to development,
    outside any form of "European nationalism" and not in such a way that the ambitions of any
    country could be camouflaged under the European label.
    It was for this reason, the speaker concluded, that the future of the Alliance required
    European integration combined with sufficiently developed institutions so that the nuclear
    powers of Europe would be, so to speak, trustees for the rest while the Alliance, instead of
    being a treaty between the United States and fourteen of fifteen separate countries, would be a
    treaty between the United States of America and the United States of Europe. The need for a
    united Europe as the "second pillar" of the Atlantic Alliance, put forward by a German
    speaker, was raised by several other speakers during the discussion. "Two keys are better than
    five fingers", said a German participant in this connexion and the speaker emphasised the
    importance of Great Britain and the Scandinavian countries adhering to Europe. An
    opportunity for this to take place, said a British participant, was missed in January 1963 and
    the creation of an adequate institutional framework was thereby prevented but perhaps a fresh
    initiative might be launched although a French participant thought it would be preferable that
    this be done by France's European partners rather than by the United States or Great Britain.
    Any such initiative, said this speaker, should be aimed at an "equal association" between the
    United States and Europe taking in the nuclear sector. If there was a determination on the
    European side to make the necessary effort, more especially the financial effort, then the
    climate in the American Congress would be more favourable to this idea. By way of corollary,
    it would be up to the United States to waive its power of veto and up to France and the United
    Kingdom to make the gesture of assigning their nuclear forces to Europe. Such a formula, the
    speaker contended, would involve fewer problems than might be thought since, in the event of
    nuclear attack, retaliation would be automatic and in the case of attack on a lesser scale there
    would be time to consult, even if only very rapidly.
    Another French participant suggested that additional consideration be given to the "time
    factor" in examining formulas enabling NATO to be recast on the same basis as the economic
    partnership at present contemplated, in the light of the possible evolution of defence
    technology. It was essential to turn towards European structures of an original kind which
    would simultaneously include a close harmony between Great Britain and France and an
    association of the other countries which would assume a share of the joint financial burden but
    also a share of the manufacturing activities, possibly those which were less specifically
    nuclear.
    A Belgian and an American participant spoke against the idea of a "directorate" of the three
    nuclear powers—the United States, Great Britain and France —within NATO since, as the
    former put it, the other European members of the Alliance could not accept such an
    arrangement. The American speaker also argued that it was contrary to the spirit of the Rome
    Treaty that a given country should appoint itself spokesman for Europe. In addition, said this
    speaker, the funeral oration for the multilateral force had been delivered somewhat too
    quickly. As regards the future, we must reserve judgement. We were in a period of
    pragmatism, there was no perfect solution and we would have to rely on what we had to
    achieve satisfactory arrangements. Referring to the lack of balance between the world role of
    the United States and that of its allies, the same speaker likewise advanced the view that the
    end of the colonial era would enable the European powers to forge new links, new
    relationships, with certain young nations. Not only did the United States not hinder such a
    trend, he asserted, but actively favoured it since that country desired neither to see dangerous
    vacuums nor to wield world domination.
    As requested by the Chairman, certain participants from the two countries concerned
    discussed the recent Franco-German Treaty. According to a German speaker, that treaty
    represented the final and fortunate conclusion of a long period of hostility. As such, it should
    be welcomed by all members of NATO, all the more so since it could exercise a stabilizing
    influence when certain divisions, such as those concerning Great Britain's entry into the Common
    Market, had been overcome. A French speaker went further in replying to a compatriot
    who had suggested that the treaty could not be applied in practice—a fact for which he was
    grateful. According to the former, the treaty could be the beginning of a certain organization of
    Europe, all the more acceptable in that it in no way hindered the possibility of subsequent
    action, that it was not exclusive, that it did not set up a closed club, that it respected existing
    alliances and left a measure of freedom to the contracting parties.
    Another French speaker, however, even though he had worked for many years past in the
    interests of a Franco-German rapprochement, expressed opposition to the treaty which he
    regarded as the adoption on a bilateral level of the "Fouchet Plan" which France's partners had
    rejected. Moreover, he said, the treaty introduced within Six-Power Europe a threat to smaller
    countries, more specifically in that it provided for certain decisions to be reached between
    Germany and France, thereby tampering with the operation of the Community.
    Another German participant voiced his approval of the treaty's provisions so long as they
    were applied within the framework of Atlantic and European solidarity. Any doubt in this
    regard should be removed when the time came to ratify the treaty by including precise legal
    references.
    II. TRADE RELATIONS BETWEEN THE U.S.A. AND EUROPE IN THE LIGHT OF THE
    NEGOTIATIONS FOR BRITAIN'S ENTRY INTO THE COMMON MARKET
    In preparation for discussion of this item on the agenda, a note emanating from a British
    source and presented in th
    1
    e form of a questionnaire had been distributed to participants, as
    well as an American note which replied in part to this questionnaire.
    The British note comprised six questions:
    1. Will the United States Government go ahead with the Kennedy Round? What are the
    obstacles to rapid advance
    (a) in the U.S.?
    (b) in Europe?
    1 Will the United States administration reinstate the Douglas amendment? If not, does
    this mean that the whole concept of abolishing tariffs on industrial products over a wide area is
    to be dropped and the only proposal will be the reduction of tariffs over a period of years?
    2 What reciprocity in the agricultural field does the United States expect from the
    E.E.C.? What degree of freedom for entry of agricultural products does it regard as a precondition
    of any reduction of industrial tariffs? If the E.E.C. makes a concession in this field,
    will the United States pay for it by making additional reductions in the industrial field? Does
    the United States consider that there is the slightest chance of France agreeing to a more
    liberal import policy for agricultural products?
    3 What happens if the E.E.C. adopts a wholly negative attitude? Does this mean that all
    tariff reduction then comes to a halt or would the U.S. be prepared to go ahead on a tariff
    reducing scheme with those countries that were prepared to co-operate?
    4 In the meantime will United States tariff policy be on a basis that is consistent with the
    general objective of reducing tariffs? We have had recent examples to the contrary in the cases
    of a number of products and others are being threatened.
    5 What effect has the breakdown of Brussels had on the U.S. attitude towards trade in
    peaceful goods with the Soviet block?
    The American note was primarily concerned with the failure of the Brussels
    negotiations and indicated that this raised four main questions, concerning
    respectively: -President Kennedy's willingness and ability to implement the Atlantic
    trade partnership which was the aim of the Trade Expansion Act;
    -the extent of European interest in liberalization of trade with the United States;
    -trade in agricultural products, particularly those products
    which are subject to the Community's variable import levy
    system; -possible alternatives to an Atlantic trade partnership.
    The note recalled that the United Kingdom's exclusion from the
    European Community
    rendered ineffective President Kennedy's authority under the Trade Expansion Act to cut
    certain tariffs out completely.1 The only remaining possibility was a 50% reduction, a fact
    which reduced the American Administration's negotiating possibilities and prospects. The
    essential purpose of the Act was to achieve a genuine Atlantic trade partnership, thereby preventing
    a division of the Western world into antagonistic blocs.
    On this basis, the programme enjoyed broad national and congressional support. In present
    circumstances, any substantial liberalization of trade with the European Community seemed to
    Americans less valuable and less feasible. It followed that approaches would be more cautious
    and matter-of-fact; additionally, the Administration would be less centrally concerned with the
    Community and more interested in Great Britain, Canada and possibly Japan.
    1. The Act provided for such a possibility in respect of industrial products where the exports of
    theUnited States and the European Community combined accounted for 80% or more of total free
    world exports.
    There was evidence of a lack of interest on the part of the European Community in dramatic
    tariff reductions. This might be explained by adjustments which had already taken place
    between members of the Community and by reluctance to invite a new wave of competition
    from powerful, aggressive American firms. There were also Europeans who saw such
    reductions as a threat to European integration. The Community could therefore be expected to
    approach the Kennedy Round with a certain reticence.
    In the case of agricultural products, the chances of liberalization were even poorer. This was
    the more serious because the Administration was under heavy domestic pressure in this field
    and might be impelled to make concessions on this point a condition of any major reduction of
    its industrial tariffs. The principle difficulty arose in connexion with commodities whose
    prices were supported in the Community and hence involved a variable tariff known as an
    import levy, designed to keep those prices higher than the world price. These support prices
    would therefore be a critical factor and the Community had so far shown little disposition to
    be flexible on this point.
    Great Britain had expressed great interest in the Kennedy Round, all the more so since
    Britain's exclusion from the Common Market had led that country to look for other export
    opportunities. But the provisions of both the Trade Expansion Act and the GATT would
    prohibit the United States from granting tariff concessions to Great Britain without also
    applying them to the Community. Should negotiations with the Community prove
    unproductive, the advantages of the Kennedy Round to Britain would be correspondingly
    small.
    These concerns had led certain circles to suggest that the United States should enter into a
    preferential trade liberalization arrangement with Britain, other EFTA countries and Canada.
    But such an arrangement would be illegal under the Trade Expansion Act —and would also
    violate the GATT unless it took the form of a free trade area. Moreover, this formula would
    further divide the Western Alliance and drive the Community towards protectionism.
    Spokesmen for the Community had frequently stressed that it was open in nature. Only if the
    Community were to turn decisively away from that policy would so radical a departure from
    the policy of Atlantic trade partnership be justified. At the present time, a policy of partnership
    was still the best, though its implementation had become more difficult.
    In the course of the discussion, a number of speakers referred to the failure of the Brussels
    negotiations in January 1963, a subject already touched on during the exchange of views
    concerning the first item of the agenda. A Netherlands participant and a British speaker
    emphasised the unexpectedness of that failure, the former quoting a passage from Professor
    Hallstein's statement of 15 February ("The truth is that negotiations had entered a difficult
    phase which required that the British should also make certain concessions but there was still a
    reasonable chance of reaching agreement") while the latter speaker recalled the warm
    welcome extended to Great Britain by the delegations of the Community countries during the
    conversations and the assurances received from France by the British negotiators only a short
    time before General de Gaulle's press conference. Several speakers sought to list the
    conflicting viewpoints which finally caused or at any rate contributed to the breakdown. In this
    connexion, a British speaker countered the argument advanced earlier by a French speaker,
    according to which it was up to Great Britain to accept the Rome Treaty outright without
    requiring any substantial alteration and that the reasons for the French government's attitude
    should be looked for there and nowhere else. It must be admitted, said the British speaker, that
    Great Britain's economic strength involved fundamental problems affecting the
    Commonwealth, the European Free Trade Association, the United States and the Afro-Asian
    world. Recognising these problems which were of a global nature and allowing for them in the
    conditions of membership meant acceptance of an enormous expansion of the Common
    Market which pre-supposed major changes in the balance of power and policy within the
    Community itself and the consequences and sacrifices involved on both sides had likewise to
    be accepted. On a more formal level, said the speaker, there were only a few pages of
    principles embodied in the Rome Treaty, the bulk of which (especially in the annexed
    protocols) consisted of waivers of those principles in order to satisfy the legitimate concerns of
    one or another of the member countries. It was therefore equally possible to do likewise in
    respect of Great Britain without violating the spirit of the Treaty.
    A similar point of view was expressed by another British participant who outlined the
    attitude adopted by the British government in the Brussels negotiations. He declined to admit
    that the failure could be attributed to the British attitude and he pointed out that his country's
    requests did not go beyond the provisions of the Treaty (article 237 of which provided for
    negotiation on the conditions of membership for new members). On 14 January, agreement
    had already been reached on a number of arrangements. It was the Commonwealth preference
    system which was regarded by some as discriminatory but it was precisely by succeeding in
    reconciling that consideration with the Rome Treaty's provisions concerning certain
    underdeveloped countries that a move might have been made towards a satisfactory solution of
    development problems at world level.
    A French and a Netherlands speaker, both of whom favoured a satisfactory arrangement
    with Great Britain, nonetheless emphasised the importance of leaving the principles embodied
    in the Rome Treaty intact and, more especially, of continuing the integration process of which
    that Treaty was a beginning.
    A French participant recognised the world-wide nature of the problems raised by Great
    Britain's entry (the monetary problem of the pound sterling, the problem of aid, the problem of
    agricultural products) which the Community had not hitherto been able to deal with as a whole
    and which it would not have been able to solve either if Great Britain had entered the Common
    Market. He considered that the negotiations between the United Kingdom and the Community
    represented a sort of bet that they would be solved, a bet made hazardous by the narrow
    framework chosen. In actual fact, solutions could only be found in a broader context and the
    question was therefore, having missed out one stage, to deal directly with the major
    broadening process which we must all face in unison.
    Several statements by American participants revealed the extent to which the Brussels
    failure had interfered with Washington's plans to strengthen the Western world via economic
    measures. An American participant emphasised how the United States government, in spite of
    the protectionist forces in the country, had decided after prolonged hesitation on a liberal
    policy, partly from conviction but also because it considered this essential in the struggle
    against communism, in order to expand markets, assist underdeveloped countries and, finally,
    in the interest of the United States. Another American speaker outlined the steps taken by his
    government since the war in order to achieve close Atlantic co-operation: he cited the
    Marshall Plan and the support given to European integration on a supranational basis and
    covering the United Kingdom. Such a system would likewise protect the interests of the
    smaller European countries and make co-operation with the United States possible on an equal
    footing, the United States not being in a position to enter a system of unification such as was
    planned for Europe. Finally, there would be no question of American "leadership", a term
    which called up the notion of domination. The speaker remarked that the "Six" had made a
    considerable contribution towards strengthening themselves individually and collectively but
    that the attitude of the United Kingdom towards integration combined with that country's
    exclusion from the Common Market as the result of the nationalistic ambitions of a single state
    had precipitated the crisis, the European partner having defaulted. The speaker strongly
    stressed his country's desire to see Western Europe eventually form a greater unit,
    notwithstanding the present setbacks, a unit which alone could enable the problems discussed
    to-day to be settled on the basis of a genuine partnership.
    In this connexion, an American participant furnished a number of chronological indications
    concerning the possible development of the Kennedy Round, making due allowance for the
    provisions of the Trade Expansion Act. The President would first have to publish a list of
    those articles concerning which he intended to negotiate. The Tariff Commission would have
    six months following such publication in which to hear from all interested parties and to
    determine the economic effect of the proposed reductions. Following this hearing, certain
    articles might be struck off the original list. Since the initial publication of the articles should
    occur towards 1 August 1963, negotiation in the strict sense of the word could not begin
    before spring 1964. The same participant and other American speakers provided some
    clarification concerning the aims pursued by the Government of the United States in initiating
    the Kennedy Round. There was no question of the government seeking to impose its views, as
    implied by certain newspapers which under estimated the negotiating capacity of the other
    GATT members. It was not even a question of a discussion involving a "winner" and a "loser":
    the aim was to open up greater trade possibilities within the context of long-term expansion. In
    the same way, observed a French and an Italian participant, it would be a mistake to talk of
    "successes" or "failures" in connexion with the difficulties which would inevitably arise.
    Another American speaker, however, pointed out that consideration must be given to the
    climate prevailing within the United States when the Trade Expansion Act entered into force.
    The protectionist elements had declined and many businessmen had become extremely liberal
    but there was still persistent unemployment, which might be structural, in certain areas. It
    followed that a lowering of customs barriers which would increase that unemployment without
    increasing exports would be badly received. If, in addition, a foreign government were to
    adopt public positions of a somewhat arbitrary nature towards American proposals, not only
    would the task confronting Mr. Herter, the negotiator appointed by the President, which was
    already crushing, be made even heavier, but the protectionist faction in Congress might even
    bring about amendments to the Act. A British participant alluded to a certain bitterness in his
    country following on events in Brussels which had occasioned an increase in nationalism
    calculated to have an unfavourable influence on his country's position vis-a-vis the
    negotiations contemplated by President Kennedy.
    Among the specific problems raised by the Kennedy Round and the E.E.C. policy, a number
    of speakers referred to the question of agricultural products and all of them recognized that it
    was of a particularly delicate nature.
    Particular attention was paid to the insistence—which, according to the press, was the
    responsibility of the French government—on making arrangements concerning the
    Community's agricultural policy before any negotiation took place within the framework of
    the Kennedy Round. Some speakers regretted the absolute nature of this requirement but a
    Netherlands participant considered that the attitude was not illogical so long as it did not
    conceal a wish for protectionism or resistance to progress. A British participant argued that
    it would be regrettable if the arrangements to be made in this sector should assume a
    restrictive aspect because of the vast needs to be satisfied in the underdeveloped countries
    where malnutrition prevailed but it was nonetheless true, said a French speaker, that we
    were at present confronted with a limited number of financially solvent outlets. An
    international participant reminded the meeting that GATT had so far been virtually unable
    to do anything to free trade in connexion with agricultural products because the national
    governments possessed a whole arsenal of protectionist measures. For its part, the United
    States insisted that agricultural products be included in the Kennedy Round since
    negotiation on industrial goods alone involved the risk of a lack of compensatory
    concessions, more especially from the viewpoint of American farmers.
    Since, however, the problems involved were so acute, a number of speakers felt that
    negotiation merely aimed at further freeing of trade would be unable to furnish a solution.
    What was needed was to achieve a genuine joint policy in this field centered not only on
    agricultural prices as such but also and above all on the production levels considered desirable.
    In this connexion, a French participant, supported by another French speaker, recommended
    that the steps taken at the national level to implement this policy should seek to improve the
    prospects of the agriculturalists concerned (individual assistance) rather than maintain an
    artificial production level at all costs. Another French participant commented that the policies
    so far followed by the various governments were distinguished by a certain contempt for
    economic laws which was not unconnected with the extensive disarray to be observed at the
    present time, e.g. the agriculturalist's right to produce things which nobody wanted— if the
    demand was lacking, the price was raised! The adoption of a joint policy at Atlantic level
    might offer a means of reversing this trend.
    Agricultural policy, although not that policy alone, raised the question of whether the
    Community intended to follow a protectionist policy withdrawn in itself or, on the contrary, a
    policy open to the outside world. Such "openess" was strongly queried by a British participant
    already quoted who took the view that, in the present context, a protectionist minority,
    represented by the French government, exercised a right of veto against a more liberal
    majority. This veto, said the speaker, might be taken far enough to result in the failure of the
    Kennedy Round and this would mean either the collapse of the Community or the terrible need
    for the other countries to seek a change in the GATT provisions whereby they could grant
    reciprocal concessions without benefit to the Community. The question of whether we were
    moving towards a continental Europe or whether Europe genuinely aspired to partnership with
    America was raised by a Netherlands speaker and a senior international civil servant who,
    without thereby denying that difficulties might well arise on the European side, emphasised
    that it was equally up to the United States to effect a considerable revision of certain
    regulations at present governing its trade policy and which were not related to tariffs and
    quotas strictly speaking. In this regard, an American participant stressed that his country was
    prepared to study equally the thorny problem of "non-tariff barriers". But the important thing
    was that these should be clearly identified; similar barriers likewise existed on the EEC side.
    This question might initially be dealt with, among others, by the preparatory inter-ministerial
    meeting planned within the framework of GATT for May 1963.
    Due allowance should also be made for certain inequalities in the relative opportunities for
    industrial producers on either side of the Atlantic. Three of these barriers were particularly
    stressed by a French participant, supported by another French speaker, namely:
    -The greater size of American firms capable of giving them a greater trading strength than
    that of their European competitors. It was true that mergers and regroupings took place within
    the Common Market but some time was still needed before genuine balance would exist in this
    connexion.
    -The exceptional assistance provided to certain advanced American industries (e.g. in the
    realm of space research) by the massive orders placed by the United States government,
    whereas there was no corresponding support for the same industries in Europe. This point was
    also made by a Belgian participant.
    -The unevenness of American tariffs, some of which reached extremely high rates, much
    higher than those of the Common Market. This was the cause of the demand for a lowering of
    the level of such tariffs before negotiations began on equality of reductions to be granted by
    both sides.
    In this regard, a Belgian participant suggested that recourse be had to certain techniques
    already employed by OEEC which aimed at avoiding purely national protective clauses or, at
    any rate, that certain rules be created to govern their application, on the recommendation of
    special committees set up for the purpose. Even if the Kennedy Round succeeded, it was
    important not to rest content with that since, as the French speaker had emphasised,
    protectionism could re-emerge in a thousand forms. Whether in connexion with agricultural
    questions, non-tariff barriers or any other problem, the negotiation of the Kennedy Round
    would be facilitated if it were possible for the European Community "to speak with one
    voice". The Rome Treaty provided that up to 1 January 1966 decisions concerning the trade
    treaties must be reached unanimously by the six contracting parties. After that date, which
    marked the end of the transition period, a specific majority would be sufficient. Considerable
    interest was therefore aroused by the suggestion of an international participant that the date
    should be brought forward to 1 January 1965, the year 1964 being devoted to a technical
    survey of the various elements involved in the negotiations. Possibly, this participant
    suggested, a "counterpart" acceptable to the governments of the "Six" could be provided in
    return for such a speeding-up, namely an undertaking to reach agreement on a joint
    agricultural policy prior to the same date.
    The effect of the Kennedy Round on the economy of underdeveloped countries was raised
    by several speakers (the general problems in such countries being discussed within the context
    of item III), all of whom emphasised that the arrangements to be made should not hinder those
    countries' export capacity. An Italian speaker suggested that there should be a "co-ordination
    of deficits" among the Western countries vis-a-vis the underdeveloped countries so that, while
    avoiding any form of monetary nationalism, there could be a fair distribution of the sacrifices
    made necessary in opening wider markets to their products.
    Two Canadian participants provided several indications concerning their country's position.
    The breakdown of the Brussels discussions did not directly affect Canada, given the
    apprehension aroused in that country by the prospect of Great Britain's entry into the Common
    Market. The failure might, however, be considered regrettable if it marked the end of a
    liberalization process to which Canada had, as it were, adhered in advance in that its industry
    was already subject to United States competition without tariff protection. In this connexion,
    the success of the Trade Expansion Act could be considered advantageous if it led to an
    expansion of world trade in which Canada had a substantial share.
    One of these participants likewise raised the question of East-West trade. He favoured a
    certain flexibility in this field since the contacts resulting from such trade might prove
    profitable to the Western cause.
    A Swiss participant stressed both the importance and the limitations of the Kennedy Round
    by putting it in the context of the economic progress accomplished since the war—more
    precisely since the Havana Conference—which had led to increased interdependence of the
    Western economies. Paradoxically, that success might have played a part in the difficulties
    now hindering further advance. But the impetus already acquired should be maintained and,
    specifically, failure of the Kennedy Round would inevitably involve a weakening of GATT.
    At the same time, it must be borne in mind that the success of the Trade Expansion Act would
    not replace expansion of the Common Market; the European Free Trade Association could
    continue to play a useful role to the extent that it did not constitute a rival bloc to the
    Community.
    A participant from an international organization pointed out that it must also be remembered
    that low tariffs, while important, were not enough by themselves to bring about economic
    expansion. National policies were more important, especially in the promotion of orderly
    development. Co-ordination of those policies and mutual assistance measures (especially in
    respect of fluctuations in the balance of payments, a point also discussed by a British
    participant) were therefore essential. In this connexion, the West already possessed an
    admirable instrument in OECD.
    In the course of the discussion, a number of speakers dwelt on the global nature of the
    problems requiring solution, the approaches to be adopted and the goals to be reached as
    well as on the importance of the attitude taken by the general public towards the new
    choices to be made.
    As a British participant emphasised, it was a question of improving the trade structure
    throughout the whole free world. It was essential, therefore, as of now, that the European
    Community, Great Britain and the United States should avoid any steps calculated to
    endanger subsequent negotiations. It was essential to combat any signs of protectionism
    which were often the economic reflection of a rebirth of nationalism. This attitude should
    take concrete form, suggested a Netherlands participant, through the adoption of a joint code
    of good behaviour in regard to international trade which would formally reject subsidies,
    dumping, cartels, etc. Moreover, as a French, an Italian and a Netherlands participant
    emphasised, joint lines of action should be laid down, whether it was a question of
    agricultural products, assistance to underdeveloped countries, financial conditions ensuring a
    balanced expansion or a number of other fields.
    Another English speaker stated that he agreed unreservedly with the solutions
    recommended by his compatriot but he pointed out that, in order to reach the goals set,
    adequate impetus was required and bilateral discussions must take place with the members
    of the Common Market in order to reach a final multilateral arrangement with its members.
    That was what the British government sought but it was obviously up to the members of the
    Common Market to decide.
    All this implied, however, not only new institutions and a new distribution of the burden but
    also perhaps a new outlook, a new way of thinking in terms of association, in short a profound
    alteration in men's minds. Such a change could not take place overnight and this was likewise
    stressed by a number of other participants who, on the whole, showed cautious optimism
    concerning the future. There would certainly be several "rounds", sometimes involving sharp
    discussions, before final success was achieved. The essential thing was to overcome present
    bitterness, however legitimate, and not to represent the difficulties which would inevitably
    arise as so many final failures.
    III. TRADE RELATIONS BETWEEN THE WESTERN WORLD AND THE DEVELOPING
    COUNTRIES (TARIFFS, QUOTAS, COMMODITY ARRANGEMENTS,
    ETC.)
    Prior to discussion of this point, all participants had received a questionnaire specially
    drawn up for the meeting by an Indian rapporteur, as well as a note prepared by a German
    participant on the basis of this questionnaire.
    The Indian questionnaire comprised the following main headings and questions:
    A. THE IMPORTANCE OF ECONOMIC DEVELOPMENT IN THE LESS-DEVELOPED COUNT
    RIES TO THE MAINTENANCE OF HIGH LEVELS OF ECONOMIC ACTIVITY IN THE
    INDUSTRIALIZED COUNTRIES.
    1) What are the categories of goods on which the increase in developing
    countries' import requirements will be concentrated? 2) What
    repercussions is this increase in requirements likely to have on industrial
    production in the highly industrialized countries?
    B. HOW CAN LESS-DEVELOPED COUNTRIES BE ASSISTED TO MEET THEIR IMPORT
    REQUIREMENTS?
    Through what means can less-developed countries be helped to finance these growing
    requirements? What role should be assigned:
    a) to an increase in earnings of the less-developed countries from their exports?
    b) to long-term financial assistance or credits?
    c) to private foreign investment?
    d) to outright transfers and grants?
    C. THE ROLE OF LARGER EXPORTS FROM LESS-DEVELOPED COUNTRIES TO IN
    DUSTRIALIZED COUNTRIES.
    1) What can be done to arrest the trend towards a decline in commodity prices?
    2) What can be done to enable less-developed countries to expand the vol