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5 in bringing Germany into a Western European In economic relationships, similarly, the UK region without permitting Germany either to will not join any kind of union, but will en- dominate it or to desert it for an Eastern courage a movement among continental na- European-Soviet orientation. tions to form such a union and will cooperate with it. At the same time it will continue its a. European Regionalism and the UK. efforts to increase the stability and prosperity Regional accommodation of aims among of the sterling area-a policy not incompatible Western European nations is taking place with the encouragement of continental Euro- within an overlapping series of European com- pean economic "integration." Economic im- mittees ranging in membership from the provement in one area will redound to the OEEC (all the ERP nations) to Western Union advantage of the other. (UK, France, and Benelux) or the embryonic The British attitude, therefore, calls for Continental economic union (France, Italy, three levels of participation in European re- and Benelux). This uneven organizational gional affairs: (a) acceptance of a full share structure permits each element to develop as of responsibility for regional military security; fast as its member nations will go. It also (b) participation in regional political associa- permits the UK to work for European regional- tions mainly to influence European policy to- ism in some contexts without becoming irrev- wards the larger US-UK policy for the whole ocably bound up in regional undertakings non-Soviet world; (c) promotion of economic that the UK encourages but does not choose stability both in continental Europe and in to join. As a result, for some time European the sterling area, but without a merging or regionalism is likely to develop with the UK "integrating" of the latter with the former. neither entirely in nor entirely out. This British approach to regionalism in The British Government takes very seri- Europe does not conflict with US aims. From ously its responsibility for a full share in the the military point of view, British regional military defense of continental Western commitments will be as great as the UK econ- Europe. British military leaders are consider- omy allows. Economically, the British may ing the commitment of a definite number of be unduly apprehensive about the damaging British divisions to the continent and the re- effects "integration" with the continent might arming of Germans. Politically the British have on economic stability and standards of participate in the Council of Europe, but they living in the UK. But the British tendency have exerted strong influence to restrain any to stand aloof will not in itself prevent conti- tendency of the Council to approximate the nental nations from taking the essential pre- status of a supra-national government. Since liminary steps toward unification. Finally, the French are eager to have the British in- the political role of the UK almost certainly volved politically on the continent as a guar- will be more favorable to US interests than if antee against German domination, and since the UK merged with a continental union, es- Churchill's promotion of European "unifica- pecially if such a union in time tried to act as tion" has found considerable popular support a third force in world affairs. in England, the UK probably will continue to move toward a closer political relationship b. Continental Economic "Integration." with the Continent. No British government, Whatever the UK does, regional "integra- however, will cultivate such connections at the tion" or rationalization of the national econo- expense of a deterioration in Commonwealth mies of continental Western Europe will pro- relations. The British will not give up any gress only gradually in the next few years. substantial measure of sovereignty, and prob- The contemplated French, Italian, and Bene- ably the refusal of the UK to become a mem- lux (Fritalux) economic bloc is making very ber of any emergent European federation will slow initial progress. In the next few be the greatest obstacle to the formation of a months Western Europe will begin to work tight regional association of Western Euro- toward an improved, multilateral clearing pean states. union to facilitate payments and increase the SECRET E. O. DECLASSIFIED 11652, Sec. 3(E) and 5(D) or (E) letter, Be NLT.H NARS Date

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    "ocrText": "5\nin bringing Germany into a Western European\nIn economic relationships, similarly, the UK\nregion without permitting Germany either to\nwill not join any kind of union, but will en-\ndominate it or to desert it for an Eastern\ncourage a movement among continental na-\nEuropean-Soviet orientation.\ntions to form such a union and will cooperate\nwith it. At the same time it will continue its\na. European Regionalism and the UK.\nefforts to increase the stability and prosperity\nRegional accommodation of aims among\nof the sterling area-a policy not incompatible\nWestern European nations is taking place\nwith the encouragement of continental Euro-\nwithin an overlapping series of European com-\npean economic \"integration.\" Economic im-\nmittees ranging in membership from the\nprovement in one area will redound to the\nOEEC (all the ERP nations) to Western Union\nadvantage of the other.\n(UK, France, and Benelux) or the embryonic\nThe British attitude, therefore, calls for\nContinental economic union (France, Italy,\nthree levels of participation in European re-\nand Benelux). This uneven organizational\ngional affairs: (a) acceptance of a full share\nstructure permits each element to develop as\nof responsibility for regional military security;\nfast as its member nations will go. It also\n(b) participation in regional political associa-\npermits the UK to work for European regional-\ntions mainly to influence European policy to-\nism in some contexts without becoming irrev-\nwards the larger US-UK policy for the whole\nocably bound up in regional undertakings\nnon-Soviet world; (c) promotion of economic\nthat the UK encourages but does not choose\nstability both in continental Europe and in\nto join. As a result, for some time European\nthe sterling area, but without a merging or\nregionalism is likely to develop with the UK\n\"integrating\" of the latter with the former.\nneither entirely in nor entirely out.\nThis British approach to regionalism in\nThe British Government takes very seri-\nEurope does not conflict with US aims. From\nously its responsibility for a full share in the\nthe military point of view, British regional\nmilitary defense of continental Western\ncommitments will be as great as the UK econ-\nEurope. British military leaders are consider-\nomy allows. Economically, the British may\ning the commitment of a definite number of\nbe unduly apprehensive about the damaging\nBritish divisions to the continent and the re-\neffects \"integration\" with the continent might\narming of Germans. Politically the British\nhave on economic stability and standards of\nparticipate in the Council of Europe, but they\nliving in the UK. But the British tendency\nhave exerted strong influence to restrain any\nto stand aloof will not in itself prevent conti-\ntendency of the Council to approximate the\nnental nations from taking the essential pre-\nstatus of a supra-national government. Since\nliminary steps toward unification. Finally,\nthe French are eager to have the British in-\nthe political role of the UK almost certainly\nvolved politically on the continent as a guar-\nwill be more favorable to US interests than if\nantee against German domination, and since\nthe UK merged with a continental union, es-\nChurchill's promotion of European \"unifica-\npecially if such a union in time tried to act as\ntion\" has found considerable popular support\na third force in world affairs.\nin England, the UK probably will continue to\nmove toward a closer political relationship\nb. Continental Economic \"Integration.\"\nwith the Continent. No British government,\nWhatever the UK does, regional \"integra-\nhowever, will cultivate such connections at the\ntion\" or rationalization of the national econo-\nexpense of a deterioration in Commonwealth\nmies of continental Western Europe will pro-\nrelations. The British will not give up any\ngress only gradually in the next few years.\nsubstantial measure of sovereignty, and prob-\nThe contemplated French, Italian, and Bene-\nably the refusal of the UK to become a mem-\nlux (Fritalux) economic bloc is making very\nber of any emergent European federation will\nslow initial progress. In the next few\nbe the greatest obstacle to the formation of a\nmonths Western Europe will begin to work\ntight regional association of Western Euro-\ntoward an improved, multilateral clearing\npean states.\nunion to facilitate payments and increase the\nSECRET\nE. O. DECLASSIFIED 11652, Sec. 3(E) and 5(D) or (E)\nletter,\nBe\nNLT.H\nNARS\nDate"
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