ance of payments deficit. Although such measures would have brought the United Kingdom within the terms of the Stockholm Convention, they would, in the British view, have been more damaging to EFTA and to the development of EFTA trade in the United Kingdom market. British Ministers affirmed that the charge was a temporary measure and that the British Government was firmly resolved in the interests of the United Kingdom, as well as of their EFTA partners, to reduce it and to abolish it at the earliest possible moment.

They explained that it was not possible to fix precise dates for reducing and eliminating the charge but it was intended that this process would begin in a matter of months.

As regards contracts, British Ministers drew attention to the fact that in response to the representations made by a number of EFTA Governments, provision had been included in the Finance Bill to relieve exporters who, under the terms of pre-existing contracts, would have to bear the charge. Other Ministers requested the United Kingdom Government to undertake bilateral negotiations with EFTA countries about any losses forced upon individual firms which have concluded contracts relying on the EFTA Convention.

The Council of Ministers agreed to keep the situation under close and continuous review. They instructed the working party, which had examined the British economic situation, to reconvene in December with a view to preparing a new report on the recent developments and the steps planned by the British Government to restore the equilibrium of the balance of payments. It was understood that the legal rights of all Parties to the Agreement remained unprejudiced.

The Ministerial Council decided to review the situation at its next meeting in February 1965.

Furthermore, in order to provide better means for giving effect in future to the consultations provided for in Article 30 of the Convention, Ministers decided to set up an Economic Committee of Senior officials from capitals to meet as frequently as necessary.

The development of EFTA trade in agriculture was fully discussed by the Ministers. The First Annual Review of this trade had been most useful. The Ministers underlined the need for intra-EFTA cooperation in this sector; the Annual Review procedure will itself assist intensified efforts to expand intra-EFTA trade in agricultural goods. In the meantime, two problems called for special attention; that of the surplus of certain products in some Member countries; and that created in EFTA markets by dumped or subsidized supplies of agricultural products from third countries.

On the Kennedy Round of tariff negotiations, the Ministers welcomed the fact that all the main parties to the negotiations had met the GATT deadline for the tabling of "exceptions lists" to the general linear cut in industrial tariffs." In accordance with their stated policies from the inception of the idea of the Kennedy Round, the EFTA countries had either abstained from making any exceptions or had kept their lists to a bare minimum and thus confirmed their intention to make the Kennedy Round a success. They noted, however, that the exceptions lists tabled by some other parties to the negotiations created great problems for some EFTA countries.

The EFTA Council reviewed the present situation regarding European integration. The British Ministers reported on recent contacts which they had had with member countries of the EEC at which there had been general recognition of the need to prevent any deepening of the gap between EEC and EFTA. The EFTA Ministers noted with interest recent suggestions for closer contact between EFTA and EEC and agreed that all such possibilities and proposals should be given full and careful attention. Other Ministers also reported on meetings with Members of the European Economic Community and the Commission.

Ministers approved the proposals for accommodation for EFTA and expressed their gratitude to the Swiss authorities for the sympathetic consideration they had shown for EFTA's needs.

The next meeting of the two Councils at Ministerial level will be held in February 1965.

See post, doc. XI-17.

Document IV-61

Agreement Creating an Association Between the European Economic Community and Turkey, SIGNED AT ANKARA, SEPTEMBER 12, 1963, ENTERED INTO FORCE, DECEMBER 1, 1964 55

Document IV-62

European Economic Community Agreement on the Establishment of a Common Level for Cereals Prices, Effective July 1, 1967: COMMUNIQUÉ ISSUED BY THE COUNCIL OF THE EEC, DECEMBER 15, 1964 (EXCERPTS) 56

"Journal officiel des Communautés européennes, 7e année, No. 217, Dec. 29, 1964, pp. 3687/64-3697/64. This agreement was signed by representatives of Belgium, the Council of the EEC, France, the Federal Republic of Germany, Italy, Luxembourg, the Netherlands, Turkey.

"Bulletin of the European Economic Community, Jan. 1965, pp. 5-7. See also ibid., Feb. 1965, pp. 7–19.

C. The Problems of Germany and Berlin

Document IV-63

Reaffirmation of the Allied Commitment to the Defense of the Federal Republic of Germany: ADDRESS BY THE AMERICAN AMBASSADOR TO THE FEDERAL REPUBLIC OF GERMANY (MCGHEE) BEFORE THE GERMAN ATLANTIC SOCIETY, FRANKFURT, JANUARY 15, 1964 (EXCERPT) 1

Document IV-64

The January 28, 1964 (U.S. Air Force T-39) Incident (East Germany): NOTE FROM THE SOVIET FOREIGN MINISTRY TO THE AMERICAN EMBASSY IN Moscow, MADE PUBLIC JANUARY 29, 1964 2

The Ministry of Foreign Affairs of the Union of Soviet Socialist Republics, acting on the instructions of the Soviet Government, states the following to the Embassy of the United States of America:

On Jan. 28 this year, at 16:55 Moscow Time [8:55 A.M. Eastern standard time], a foreign military aircraft, flying from the area of Kassel, invaded the airspace of the German Democratic Republic in the area of Diedorf (25 kilometers-15.5 miles-northwest of Eisenach). Continuing its flight in the easterly direction at an altitude of 8,000 meters (26,000 feet) and a speed of about 800 kilometers (500 miles) per hour, the intruder plane penetrated 90 kilometers (60 miles) into the territory of the German Democratic Republic.

To the south of the town of Mühlhausen the intruder plane was intercepted by a fighter plane of the group of Soviet troops in Germany, which gave the conventional signals ordering the intruder to land. The intruder did not react to these signals, but continued its flight deeper into the territory of the G.D.R.

The intruder plane also did not react to the warning fire opened in the area of Weimar and in this connection the fighter plane was forced to undertake measures envisaged by instructions on the protection of airspace, which are known to the American command. As a result, the intruder plane fell near the village of Vogelsberg, 20 kilometers (12.5 miles) to the northeast of the town of Erfurt.

An inspection of the place where the plane fell showed that the intruder was a military jet plane of the United States Air Force of the T-39 type. The corpses of three servicemen were found.

The Soviet Government protests against the intrusion of a military plane of the United States Air Force into the airspace of the G.D.R.

The Soviet Government cannot regard this intrusion otherwise than a gross provocation by the American military authorities, aimed at aggravating the situation in Central Europe. The Soviet side has warned repeatedly that such intrusions of military aircraft into the airspace of the G.D.R. would be cut short resolutely.

In connection with the current case, the Soviet Government calls attention to the fact that such violations of the G.D.R. airspace lead only to unnecessary incidents and complications, entail senseless human losses.

The Soviet Government deems it necessary to stress that all responsibility for this regrettable incident rests with the authorities of the United States. It expects that the Government of the United States of America will take steps to prevent the repetition of such incidents in the future.3

1Ante, doc. IV-1.

2 The New York Times, Jan. 30, 1964.

The U.S. reply (not printed) was delivered to the Soviet Ministry of Foreign Affairs Feb. 6, 1964.

See infra.

Document IV-65

United States Protest Over the Shooting Down of an American T-39 Aircraft Over East Germany, January 28, 1964: STATEMENT READ BY THE DIRECTOR OF THE OFFICE OF NEWS (PHILLIPS), DepartMENT OF STATE, AT A News CONFERENCE, JANUARY 29, 1964 *

Assistant Secretary Tyler called in Soviet Deputy Chief of Mission Kornienko and strongly protested the shooting down of the American T-39 aircraft over East Germany on January 28th in which three American officers were killed. Mr. Tyler termed this a callous and inexcusably brutal act of violence against an unarmed aircraft that accidentally strayed over the demarcation line between West and East Germany.

Mr. Tyler noted that the Soviet authorities in East Germany have so far refused to cooperate with the American authorities in investigating the circumstances of the incident. He requested the Soviet Government to send appropriate instructions to the Soviet authorities in East Germany to permit the recovery of the remains of the U.S. officers and to afford access to the plane. Mr. Tyler said that the United States Government expects that the Soviet Government will punish those responsible for the shooting down of the aircraft and the killing of these men."

Document IV-66

United States Refutation of Soviet Charges of Alleged Construction of Guided Missiles in the Federal Republic of Germany for Military Purposes: STATEMENT MADE BY THE ASSISTANT SECRETARY OF STATE FOR EUROPEAN AFFAIRS (TYLER) TO THE SOVIET AMBASSADOR IN WASHINGTON (DOBRYNIN), FEBRUARY 27, 1964

In its statement of January 31, 1964, the Government of the U.S.S.R. has seen fit to call the attention of the Government of the United States to information appearing in the press concerning the activities of the Waffen-und Luftrustung AG. of Hamburg. On this basis, the Soviet Government has protested against the alleged construction of rockets and guided missiles in the Federal Republic of Germany for military purposes.

As to the position of the Federal Republic of Germany regarding the manufacture of such weapons, the United States Government refers to the London and Paris agreements of October 1954, to which obviously only the signatory states are entitled to have recourse. The

'Department of State files.

8

Allied authorities recovered the remains of the U.S. officers and the wreckage of the airplane, Jan. 31, 1964.

* Department of State files.

'Statement made to the Secretary of State (Rusk) by the Soviet Chargé d'Affaires in Washington (Kornienko).

8

* See American Foreign Policy, 1950–1955: Basic Documents, vol. I, pp. 980-984.

Federal Government there gave to its co-signatories precise undertakings with regard to the production of missiles for military use. The United States Government is convinced that these pledges, as reaffirmed in the statement of the Federal Republic of Germany of December 6, 1963, have been and are being fulfilled.

With respect to the company in question, a spokesman of the Federal Republic of Germany made a statement on February 5, 1964, after an inquiry into the activities of the company, confirming that, whatever their claims, the company and its associates have neither tested nor constructed military rockets.

The facts of the case thus certainly do not warrant the sweeping inferences drawn in the Soviet Government's statement. It is a matter for regret that the Soviet Government should have renewed unfounded accusations against the Federal Government of Germany.

Document IV-67

The March 10, 1964 (U.S. Air Force RB-66) Incident (East Germany): NOTE FROM THE SOVIET FOREIGN MINISTRY TO THE AMERICAN EMBASSY IN Moscow, MARCH 11, 1964 °

9

Upon the instructions of the Soviet government, the U.S.S.R. Ministry of Foreign Affairs declares the following to the Embassy of the United States of America.

The Soviet government is obliged once again within a short period of time to call the attention of the government of the United States of America to the dangerous actions of the American military authorities directed against the territorial integrity of the German Democratic Republic, which is a member state of the Warsaw Pact.10

On March 10, 1964, at 16 hours 51 minutes Moscow time, an American military jet plane of the RB-66 type intruded into the airspace of the German Democratic Republic near the city of Helmstedt. Continuing its flight in an easterly direction at an altitude of more than 10,000 meters, the intruder plane penetrated up to 70 km. into the territory of the G.D.R. South of Altenhausen the intruder was intercepted by a fighter plane of the Group of Soviet Forces, which are stationed in the German Democratic Republic on the basis of treaty agreements with the G.D.R. The crew of the plane ignored the order to land given them with prescribed signals and continued the flight deep into G.D.R. territory. After the Soviet fighter plane had fired warning shots, in view of the intruder plane's refusal to obey the order to land, the Soviet Armed Forces, acting in agreement with the competent G.D.R. agencies, took the necessary measures in accordance with instructions on the protection of airspace, which are known to the American command. The intruder plane fell in G.D.R. territory northeast of the city of Gardelegen.

An investigation at the place where the plane fell showed that the plane carried special reconnaissance equipment for aerial photography and radio reconnaissance. It has been established that the plane had penetrated into G.D.R. territory with the special purpose of conducting military reconnaissance.

The Current Digest of the Soviet Press, vol. XVI, No. 11, Apr. 8, 1964, pp. 23-24.

10

Text in American Foreign Policy, 1950-1955: Basic Documents, vol. I, pp. 1239-1242.