In the economic field the work of NATO and OEEC is coordinated not only to avoid duplication of effort but also to draw upon the experience of the older organization. NATO and OEEC have worked closely together on an informal basis. For example, the work of OEEC in reviewing the economic situation of its member countries has been very useful to NATO in its annual review of the defense efforts of NATO countries.

It is also anticipated that there will be a close relationship between the European Defense Community (EDC) and NATO once the former is established. (See page 29.)

THE

The European Coal and Steel
Community (Schuman Plan)

Origin and Purpose

HE TREATY ESTABLISHING a European Coal and Steel Community was signed on April 18, 1951, by the Governments of six Western European countries: France, the Federal Republic of Germany, Italy, Belgium, the Netherlands, and Luxembourg. The treaty went into force on July 25, 1952.

The plan for merging the coal and steel industries of Europe was first advanced by French Foreign Minister Robert Schuman in May 1950. Popularly known as the Schuman Plan, it later received the official title of the European Coal and Steel Community. Foreign Minister Schuman's invitation to develop a single market for coal and steel was extended to all European nations. Five countries were able to accept this invitation.

The treaty developed by the member countries envisages the elimination of both national barriers to trade in coal and steel among the participating countries and of private agreements restricting the production and marketing of these commodities. The purpose of the Plan is the creation of a single market in coal and steel among the member nations, regulated through a supranational institution, which will permit free movement of these commodities in the entire community.

Organization

The organs of the Community consist of a High Authority, a Consultative Committee, an Assembly, a Council, and a Court. The High Authority is the executive body of the Community. It consists of nine members elected at 2-year intervals for 6year terms. In the first election the member governments unanimously elected eight of the members of the High Authority, and these in turn elected the ninth member. In succeeding elections the unanimity rule will be dropped, and five votes out of six will suffice to elect the eight members. Jean Monnet

is the chairman of the High Authority. The other members are Léon Daum of France, Franz Etzel and Heinz Potthoff of Germany, Enzo Giacchero of Italy, Dirk Spierenburg of the Netherlands, Albert Coppé of Belgium, and Albert Wehrer of Luxembourg. Paul Finet of Belgium is the ninth member. The High Authority acts by a majority vote of its membership and is responsible to the Assembly to which it must report periodically. The Consultative Committee, consisting of 51 members and including producers, workers, and consumers in equal numbers, will be attached to the High Authority.

The Assembly is composed of delegates elected every year by national parliaments, presumably from among their own members. France, Italy, and the German Federal Republic have 18 delegates each, Belgium and the Netherlands 10 each, and Luxembourg 4. The Assembly meets in ordinary open session once a year but may be convoked in extraordinary session by the Council. The first session of the Assembly opened September 10, 1952.

The Council represents national governments and consists of a minister from each government, having one vote in the Council. Voting rules in the Council vary according to the nature of the decisions to be taken. Certain major decisions require unanimous agreement of the Council. When simple concurrence of the Council is required, the vote is by an absolute majority which must include one of the major producers. The Court of Justice is composed of seven judges appointed by agreement among the member governments for 6 years at 3-year intervals.

Functions and Powers

As the executive body of the Community, the High Authority has extensive powers. These include the fixing of maximum or minimum export prices, maximum prices within the Community, and minimum prices at times of crises and the right to make levies, to impose fines, to borrow money, to issue directives with respect to the elimination of discriminatory practices, and to make studies pertaining to the enterprises under the jurisdiction of the Authority. In certain important respects, these powers are subject to the Council's decisions. The Authority is responsible to the Assembly, which must review its work annually and can by a two-thirds majority vote of censure force

its resignation. Its directives can also be annulled by the Court in the event the High Authority exceeds its powers. The Consultative Committee has general advisory functions and provides a direct link between the High Authority and the producer, labor, and consumer groups which it represents.

The Council of Ministers is empowered to insure the coordination of the work of the High Authority with that of the national governments for such purposes as maintaining the balance of external accounts, an adequate defense, and full employment. The Council, for example, will have the right to initiate proposals and will have a voice in the determinations of the High Authority whenever the question of market control is involved. In certain cases of emergency, such as the development of serious shortages of steel and coal products and when the Authority fails to take the initiative, the Council is empowered to establish consumption priorities by unanimous vote and to determine the allocation of the coal and steel resources of the Community.

The Court deals with the juridical problems arising out of the relations among the constituent organs of the Community. Its most important power is the right to nullify or reverse the decisions or acts of these organs if they exceed their powers.

Relations Between the Coal and Steel Community and Other European Organizations

The only formal relationship provided for in the treaty between the Community and other European organizations is that with the Council of Europe. (See Council of Europe, page 17.) Others are being worked out with organizations such as OEEC.