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forces, (b) policies designed to maintain and strengthen the economic and social structure of each country and (c) appropriate organizational arrangements.

(1) The threat which the member countries of NATO now face. clearly requires that they promptly build up their effective forces. The various elements of this build-up should be kept in balance so as to make possible at all times the maximum combat-ready forces as an effective deterrent against aggression.

(A) The Council resolution stated measures essential to the achievement of the planned build-up of NATO defensive strength in this and following years. These measures emphasized:

(1) Economy in the use of resources for defense,

(2) The elimination of less essential defense activities,

(3) Adoption of detailed measures developed by Tcc for improving the combat efficiency of national forces,

(4) A further development of NATO-wide equipment supply planning,

(5) Initiation of a system of NATO priority recommendations to assist in the allocation of equipment by nations,

(6) An increased efficiency through improved organizational arrangements.

On these and other points, specific recommendations have been agreed to by NATO governments, and instructions for action given with provisions for NATO follow-up.

(B) The directives defining the duties and responsibilities of General Eisenhower and of the military committee's standing group have been revised to reflect added responsibilities.

(C) The Tcc plan of action included the assumption that Germany will in subsequent years contribute forces through the European Defense Community to the defense of Europe.

(2) Adequate defensive strength can be created and maintained only if the economic and social foundation in each country remains sound and healthy. The Council made a number of recommendations for strengthening the economies of the participating countries, involving national and cooperative action. The Council recommended that all NATO governments should take all practicable measures

(A) To encourage general economic expansion;

(B) To increase production of scarce raw materials and to control their use as necessary to conserve supplies and insure defense require

ments are met;

(C) To prevent inflation by adoption of necessary sound fiscal, financial, and monetary policies;

(D) To facilitate labor mobility among NATO countries and to alleviate manpower shortages in defense industries;

(E) To adopt measures to improve the equitable distribution of the internal burden of defense in the NATO countries;

(F) To maintain essential imports through a satisfactory solution

of balance of payments problems, in particular by increasing the dollar earnings of European countries.

(3) NATO activities are shifting in emphasis from the planning to the operational stage. The machinery and methods of operation of NATO must be adjusted to this new situation. In particular, the Tcc recommended methods to develop and keep up to date a NATO-wide defense program which is balanced, feasible and economical. On this basis, there is a need for continual planning and follow-up by NATO agencies, based on annual reviews of the Tcc type, by the permanent NATO, to provide a firm program for the immediately ensuing year and provisional guidance for longer-term actions.

The Council recognized the existence of a number of military, economic and political problems which the member countries face in implementing fully its recommended program for 1952. The Council agreed that urgent and sustained action on these problems is of vital importance to the achievement of Nato security objectives, and urged that the governments and the NATO agencies undertake without delay the specific actions required.

The Council resolution recognizes that the risk of aggression will continue. It also recognizes that there is a great urgency for increased defensive power in the North Atlantic Treaty area on a truly operational basis, and that governments individually and collectively should devote their best efforts to this end.

5. The Council invited the Governments of Greece and Turkey to consider with appropriate NATO bodies the applicability of the findings and recommendations of the Tcc to Greece and Turkey. It opened the way for the participation of Greece and Turkey on a full and equal basis in the annual review to be undertaken beginning next summer.

47. NINTH SESSION OF THE NORTH ATLANTIC COUNCIL (LISBON): Communiqué, February 26, 19521

The ninth session of the North Atlantic Council was held in Lisbon from February 20 to February 25, 1952, under the chairmanship of the Honorable Lester B. Pearson, Canadian Secretary of State for External Affairs.

On February 18, the kingdom of Greece and the republic of Turkey acceded to the treaty,2 and representatives of their respective Governments attended throughout the session. In all, thirty-five Ministers of fourteen countries took part in the discussions of the council.

(2)

The Council made further progress in dealing with current and longrange problems of the Atlantic community. The decisions taken and the agreements reached by the Council are the practical result of projects initiated at earlier sessions and reflect the continuing work

1 Department of State Bulletin, Mar. 10, 1952, pp. 367–368.

2 See supra, pp. 853–854.

of the treaty agencies. They represent the united efforts of member Governments to safeguard the peace, stability and well-being of the North Atlantic community through the strengthening of their collective defense.

(3)

The Council took note of a report of the Paris conference on the European Defense Community and a report by the occupying powers on the proposed contractual arrangements with the German Federal Republic. The Council found that the principles underlying the treaty to establish the European Defense Community conformed to the interests of the parties to the North Atlantic Treaty. It also agreed on the principles which should govern the relationship between the proposed community and the North Atlantic Treaty Organization. The North Atlantic Council agreed to propose to its members and to the European Defense Community reciprocal security undertakings between the members of the two organizations. Such undertakings would require ratification in accordance with the constitutional processes of the states involved. All these decisions are inspired by the conviction that the North Atlantic Treaty Organization and the European Defense Community have a common objective, to strengthen the defense of the Atlantic area, and that the development of the European Defense Community should be carried forward in this spirit. Therefore, the Council considered that the obligations and relationships between the communities should be based on the concept of two closely related organizations, one working, so far as this objective is concerned, within the framework of, and reinforcing the other.

(4)

4

The Council took detailed and comprehensive action based on the recommendations of the Temporary Council Committee. The decisions taken by the Council provided for the earliest building-up of balanced collective forces to meet the requirements of external security within the capabilities of member countries. Agreement was reached on the specific defensive strength to be built this year, and on a definite program of measures to be taken this year to increase defensive strength in following years. A number of important steps were agreed to be taken by the treaty organization and by member governments to accomplish this building-up with a more efficient use of resources. Policies designed to maintain and strengthen the economies and social stability of member countries were agreed and recommended to governments.

1 See the communiqué of the Paris conference, Jan. 28, 1952 (Documents on International Affairs, 1952 (London, 1955), pp. 74-76) and the communiqué of Feb. 19, 1952, issued by the three Western Foreign Ministers and the German Federal Chancellor (infra, pp. 1726-1727).

See the Protocol of May 27, 1952, concerning Relations between the European Defense Community and the North Atlantic Treaty Organization, supra, p. 1171. See the Additional Protocol . . concerning Guaranties of Assistance... to the States Parties to the North Atlantic Treaty, May 27, 1952; supra, pp. 11731174.

See the summary of the Committee's report; supra.

415900-57--106

(5)

Agreement was reached on the financing of a further portion of the infrastructure program, for airfields, communications and headquarters.

(6)

The terms of reference of the Standing Group and of the Supreme Commander, Allied Powers in Europe, were revised to reflect added responsibilities, notably for equipment priorities and planning for the logistical support of the military forces.

The Council agreed that the ground and air forces of Greece and Turkey assigned to NATO will operate under the over-all command of SACEUR (Supreme Allied Commander Europe) through Commander in Chief, Southern Europe. The naval forces of Greece and Turkey will remain for the present under their national Chiefs of Staff, operating in close coordination with all other naval forces in the Mediterranean. The Standing Group was directed to continue its study of command of naval forces in the Mediterranean area and their coordination with land and air forces and to submit a definitive report to the Council at its next meeting.

(7)

1

The Council also took action to adapt the Treaty Organization to the needs arising from the development of its activities from the planning to the operational stage. The North Atlantic Council, while continuing to hold periodic ministerial meetings, will henceforth function in permanent session through the appointment of permanent representatives. The Council decided to appoint a Secretary General, who will head a unified international secretariat designed to assist the Council in the fulfillment of the increasing responsibilities. All civilian activities of the organization will be concentrated in the geographical area where are situated other international agencies whose work is closely related to that of the Treaty Organization and with which close administrative connection is essential to efficiency. These are presently situated in the vicinity of Paris. When these changes become effective, the Council will assume the functions hitherto performed by the Council Deputies, the Defense Production Board, and the Financial and Economic Board.*

1 For the terms of reference of the Standing Group, see Section V of the Final Communiqué of the First Session of the North Atlantic Council, Sept. 17, 1949; supra, doc. 35.

2 For the terms of reference of the Council Deputies, see the Final Communiqué of the Fourth Session of the North Atlantic Council, May 19, 1950; supra, doc. 38. 3, The terms of reference of the Defense Production Board were included in Section VIII of the communiqué by the North Atlantic Council Deputies, May 5, 1951; supra, doc. 42.

For the terms of reference of the Financial and Economic Board, see Section I, ibid.

(8)

The Council adopted a report of the Atlantic Community Committee, established at its Ottawa meeting. This report emphasized the importance of economic cooperation, the expansion and liberalization of trade, and the possibility of working out closer cooperative arrangements with other bodies, particularly the OEEC (Organization for European Economic Cooperation). In approving the analysis of the problem of the movement of labor between member countries in the report of the Atlantic Community Committee, the Council acknowledged the importance of this problem and endorsed the resolution of the Temporary Council Committee on this subject. It was agreed that the permanent North Atlantic Treaty Organization should keep this problem under continuous review, and make recommendations for the elimination, by the most effective utilization of manpower resources, of general or specific manpower shortages which hinder defense production. As cooperation in the field covered by the five-power Atlantic Community Committee is of direct and common concern to each member of the Council, it was decided that the future work in this sphere should be transferred to the Council.

(9)

The Council issued a declaration reaffirming the aims of the North Atlantic Treaty Organization as the promotion of peace through defensive strength and enduring progress.

THE DECLARATION OF AIMS

In the course of their discussions in Lisbon the members of the North Atlantic Council reviewed the aims of their association.

They wish once more to emphasize that this association was forged as a shield against aggression. Its first aim is peace, and the armed strength which is being built up by the united efforts of the member nations will be used only for the defense of their countries and the security of their peoples.

The plan for the build-up of defense forces for the North Atlantic Treaty area laid down by the Tcc has been adopted at the present session of the Council in the belief that defensive strength will prove the best deterrent to aggression.

The Council has learned with approval of the main provisions of the plan worked out between five of its members (France, Italy, Belgium, the Netherlands, Luxembourg) and the (West) German Federal Republic for a European Defense Community.

The establishment of this community will help to promote the closer association of the Western European countries and to strengthen the defense of the North Atlantic area.

1 See the statement issued by the North Atlantic Council, Sept. 21, 1951; supra, doc. 43.

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