INTERNATIONAL POOLING

Otago Daily Times, Issue 27386, 11 May 1950, Page 7

INTERNATIONAL POOLING

Steel And Coal Production FRENCH INVITATION TO GERMANY AS FIRST STEP New Zealand Press Association—Copyright Rec. 8.35 p.m. LONDON, May 10. The Paris correspondent of The Times reports that the French Government’s proposal that French and German coal and steel production should be placed under a single authority within an organisation open to all other countries willing to join is the French contribution to solving the deadlock which international affairs are felt to have reached. It is essentially a political act, and its originality lies in its concentration on two vital branches of production which command the whole economy of nations. The fact that Germany is the first nation invited to take part in the pooling of basic means of production is a bold attempt to solve the problem of Franco-German relations by ending the traditional rivalry which has opposed the Ruhr and French industry in a struggle for markets.

The wider implications of the French scheme are obvious. If the two main sources of coal and steel in Europe are combined under the same authority international competition afnd one of the basic causes of conflicts will be eliminated. The French decision closely followed the French Foreign Minister, M. Robert Schuman’s talks with the American Secretary of State, Mr Dean Acheson, on the next moves by the western world in the cold war against Communism. It will be discussed at the Big Three. Foreign Ministers’ meeting opening in London on Thursday.

M. Schuman said: “We propose to place the whole French-German coal and steel production under a common high authority within an organisation open to other European countries.” Thus in effect France is suggesting a common pool of all Western Europe’s heavy industries. Germany, France, and Britain, it is believed, will be the first to take part in the plan, but later participants could be Italy, Belgium and Holland. M. Schuman said France wanted Germany brought into a broad economic partnership of democratic European nations. European Federation M. Schuman said the French Government had reached its decision in an effort to eliminate “ centuries-old opposition of France and Germany.” M. Schuman called the proposal the first stage in European federation, and said it would “change the destiny of

those regions so long devoted to the manufacture of armaments of war.”

M. Schuman added: “The pooling of coal and steel production will immediately ensure the establishment of a common basis of economic development, the first stage of European federation. The unified production thus realised will show that any war between France and Germany will become not only unthinkable, but also materially impossible.” M. Schuman said the French Government was ready to open negotiations on the following basis:— 1. A common high authority should ensure modernisation of production and improvement of quality.

2. Coal and steel should be supplied to German and French markets, and to markets of any participating nations under identical conditions.

3. Exports to other countries should be from a common pool of production. 4. Conditions of labour in industries throughout the nations participating should be equalised. Great-hearted Step The West German Federal Cabinet has unanimously decided to accept the invitation to join the Council of Europe and the Chancellor, Dr Konrad Adenauer, said last night that the necessary Bill would be presented to the Bundestag (Lower House) with an appeal for prompt action. Cabinet's decision has been facilitated by the French Government’s proposal that the coal and steel industries of the two countries should be brought under common authority. Dr Adenauer said the decision would have been made in any case, but he described the new French proposal as a “ great-hearted step." It was also a guarantee that the future would see no further conflict between France and Germany.