Organization for European Economic Chateau de la Muette, 2 rue Andre Bascal, Paris, France ORIGIN AND DEVELOPMENT This is the organization of nations and territories which participate in the European Recovery Program. It was established by the Convention for European Economic Cooperation, signed at Paris on April 16, 1948,12 which was put into operation provisionally on signature and came into full force, in accordance with article 24 on July 28, 1948, when six of the signatories deposited their instruments of ratification. The history of the Organization for European Economic Cooperation (OEEC) goes back to U.S. Secretary of State George C. Marshall's statement on June 5, 1947, that "Before the United States Government can proceed much further in its efforts to alleviate the situation and help start the European world on its way to recovery, there must be some agreement among the countries of Europe as to the requirements of the situation and the part those countries themselves will take in order to give proper effect to whatever action might be undertaken by this Government." 12 Acting on this suggestion, the Foreign Ministers of France and the United Kingdom met with the Soviet Foreign Minister to discuss the best means for proceeding. The Soviet Union, however, after this preliminary discussion with the British and French, refused to participate in working out a program. The United Kingdom and France then invited all European nations except Spain to meet with them in Paris in an effort to work out a joint recovery program. Sixteen European nations accepted the invitation. Two nations from eastern Europe-Poland and Czechoslovakia-at first showed interest in participating, but later withdrew. The 16 nations organized the Committee for European Economic Cooperation (CEEC) on July 12, 1947. The CEEC met during the summer of 1947 and drew up a two-volume report,12 concerning the requirements of a European recovery program, which was the basis for subsequent United States action. In that report the 16 countries declared that "if the external means necessary for carrying through the program are made available to us, it is intended to create a joint organization charged with the task of reviewing the progress made and collecting information from the different governments regarding their progress." Accordingly, following the passage of the act of Congress authorizing the program,13 the participating countries established the OEEC. The OEEC is practically in continuous session by virtue of the frequent meetings of its constituent organs, including the governing body, the Council, which has met more than 50 times during the first year of the organization's existence. All meetings are held in Paris. MEMBERSHIP Membership in the OEEC consists of all governments (including the American, British, and French Zones of Germany) which signed the Convention for European Economic Cooperation on April 16, 1948, and the United Kingdom-United States Zone of the Free Territory of Trieste which acceded to the convention and joined the OEEC in October 1948. Other European nations may become members by acceding to the convention with the assent of the Council of the Organization. The present membership consists of the following governments and political units: Austria, Belgium, Denmark, France, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Sweden, Switzerland, Turkey, the United Kingdom, the French Zone and the Bizone of Germany, and the United States-United Kingdom Zone of the Free Territory of Trieste. The United States is not a member of the organization. The United States Government, however, works closely with the organization and, by invitation, regularly sends observers to the meetings of the technical committees, and on occasion to meetings of the Executive Committee and the Council. PURPOSES, POWERS, AND FUNCTIONS The long-term aim of the OEEC is to achieve a sound European economy through the economic cooperation of its members. Its immediate purpose is to insure the success of the European Recovery Program in cooperation with the United States Government. To achieve its purposes, the organization is empowered to make decisions to be implemented by the member governments; to enter into agreements with its members, with the United States Government, with nonmember governments, and with international organizations; and to make recommendations to the United States Government, to nonmember governments, and to international organizations. Decisions of the organization are reached by the unanimous consent of the members. The organization has the following specific functions: it prepares over-all production, import, and export programs on the basis of the 13 See Basic Texts and Publications, p. 108. 842727-50-8 national programs submitted by its members; it considers the best use of each member's productive capacity and manpower so that the participating countries as a whole will benefit; it works for cooperation among members in reducing trade barriers and financial barriers; it helps members to surmount difficulties which they may encounter in carrying out the recovery program; it may coordinate the purchasing policies of the members so as to avoid conflict and overlapping; it seeks to insure the efficient use of both external aid and internal resources; and it makes recommendations to the United States on the allocation of aid among the participating countries. STRUCTURE The governing body of the OEEC, vested with the power of decision, is the Council, which is composed of one representative from each of the 19 members. It acts on the principle of unanimity, although a member may refrain from voting on a particular question or may approve a decision with stated reservations. Under the Council is the Executive Committee, which directs the day-to-day activities of the OEEC. The Committee is composed of representatives of seven members, chosen annually by the Council. It considers in advance all matters to be referred to the Council and prepares its recommendations as to what action the Council should take. The Executive Committee also prepares the agenda for the Council's meetings. A number of technical committees have been created to deal with special problems. There is, for example, a group of functional committees, such as the trade, programs, intra-European payments, and manpower committees, and there are numerous committees which deal with special commodities such as food and agriculture, iron and steel, coal, raw materials, textiles, and machinery. Each member is entitled to representation on these committees or to send a representative to sessions when the committee is considering a problem of interest to it. The Secretary General and the internationally staffed secretariat are responsible for assisting the Council, the Executive Committee, and the technical committees in their work. The secretariat analyzes the economic problems that come before the organization and submits suggestions concerning their solution. In addition the secretariat provides the technical and housekeeping services necessary for the efficient operation of the OEEC. Elections to the chairmanship of the Council and of the Executive Committee are held not in terms of individuals, but in terms of member nations and are for a period of one year. The Secretary General is Robert Marjolin of France, appointed for an indefinite term. The official and working languages of the organization are English and French. Documents are printed in both languages. FINANCES The OEEC budget is based on a fiscal year and is expressed in French francs. The first annual budget, that for 1949, amounted to 1,474,980,308 French francs. The OEEC derives no income from sources other than members' contributions, which are determined by the Council. UNITED STATES RELATIONS Authorization. Although the United States is not an official member of the OEEC, close working relationships between the organization and the United States have been authorized both by act of Congress and by the organization itself. Section 108 of the Economic Cooperation Act of 1948, approved on April 3, 1948, provides that the United States Special Representative in Europe will be the United States Representative to "any organization of participating countries which may be established by such countries to further a joint program for European recovery OEEC provision for United States participation stems from a resolution passed on April 16, 1948, when the OEEC was established. The resolution stipulates that the member nations would "make all such arrangements as may be appropriate to maintain close relationships with the United States Special Representative in Europe. and to assist him in the performance of his duties." 99 14 Payments. The United States makes no contribution to the budget of the OEEC. Agencies Chiefly Concerned. The Economic Cooperation Administration and the Department of State are the United States agencies principally concerned with formulation of this Government's policy toward the OEEC. The ECA is primarily concerned with the implementation of the joint programs formulated by the organization. The Department of the Army also has an important interest in the functioning of the organization, because of its responsibilities for the United States zones of occupation in Germany and Trieste. Participation. The United States, not being a member of the OEEC, is not represented on the organization's governing body, the Council. Since, however, American aid is essential to the OEEC in achieving European recovery, the United States Special Representative in Europe maintains a close relationship with the organization. In addi 14 See Basic Texts and Publications, p. 108. tion, American observers attend meetings of the technical committees and occasionally the Council and the Executive Committee at the invitation of the OEEC. RELATIONS WITH OTHER INTERNATIONAL AGENCIES The OEEC has signed no formal agreements with other international agencies. It has, however, worked closely, on various special problems, with United Nations agencies such as the Economic Commission for Europe, the International Labor Organization, the International Refugee Organization, and the International Monetary Fund. BASIC TEXTS AND PUBLICATIONS U.S. Department of State. Convention for European Economic Co-operation, With Related Documents, Paris, April 16, 1948. Pub. 3145. Economic Cooperation Series 7. Washington, Government Printing Office, 1948. Committee of European Economic Co-operation. Pubs. 2930 and 2952. European Series 28 and 29. Vol. I, General Report, Paris, September 21, 1947; vol. II, Technical Reports, July-September 1947. Washington, Government Printing Office, 1947. United States Participation: Section 108 of the Economic Cooperation Act of 1948. (62 Stat. 137). Department of State Bulletin, June 15, 1947, pp. 1159–60. "European Initiative Essential to Economic Recovery." Remarks by Secretary of State Marshall at Harvard University on June 5, 1947. Organization for European Economic Cooperation. Interim Report on the European Recovery Programme (Special), Paris, December 30, 1948. Minutes of meetings, documents, and technical reports are prepared by the organization, but are restricted to governmental use only. |