an international staff drawn from the nations contributing to the force. The Council, desiring to simplify the structure of the North Atlantic Treaty Organization in order to make it more effective, asked the Council Deputies to initiate appropriate action. In this connection the Defense Committee, meeting separately on December 18th, had already taken action to establish a defense production board with greater powers than those of the Military Production and Supply Board which it supersedes. The new board is charged with expanding and accelerating production and with furthering the mutual use of the industrial capacities of the member nations.

The Council also reached unanimous agreement regarding the part which Germany might assume in the common defense. The German participation would strengthen the defense of Europe without altering in any way the purely defensive character of the North Atlantic Treaty Organization. The Council invited the Governments of France, the United Kingdom and the United States to explore the matter with the Government of the German Federal Republic.

The decisions taken and the measures contemplated have the sole purpose of maintaining and consolidating peace. The North Atlantic nations are determined to pursue this policy until peace is secure.

42. ADMINISTRATIVE REORGANIZATION OF NATO: Communiqué by the North Atlantic Council Deputies (London), May 5, 1951 2

I.

The North Atlantic Council Deputies announce today the adoption by their Governments of new terms of reference for the North Atlantic Council, which will hereafter incorporate the Defense Committee and Defense Finance and Economic Committee and thus become sole ministerial body in organization.

The Council Deputies announce at the same time the creation of a Financial and Economic Board [FEB], located in Paris.

The North Atlantic Council, as originally established, was composed of the Foreign Ministers of the nations party to the North Atlantic Treaty. Two other ministerial committees were organized, & Defense Committee composed of Defense Ministers and a Defense Finance and Economic Committee composed of Finance Ministers.3 The only full-time agencies functioning during the early months of NATO (North Atlantic Treaty Organization) were the standing group (made up of representatives of the Chiefs of Staff of France, the United Kingdom and the United States) and the permanent working staffs of the Defense Finance and Economic Committee and of the

2

1 See the Council Deputies' communiqué of May 5, 1951, infra.

Department of State Bulletin, May 21, 1951, pp. 810-812.

See the Final Communiqué of the First Session of the North Atlantic Council, Sept. 17, 1949; supra, doc. 35.

Military Production and Supply Board, a subordinate organization of Defense Committee.1

Experience soon demonstrated the need for a central, continuously functioning body to insure coordination between the work of the various treaty agencies and to facilitate the implementation of agreed plans. The Council in May 1950 therefore established the Council Deputies,2 who first met in July of that year.

II. THE CANADIAN PROPOSAL

Experience also demonstrated the need, particularly as emphasis shifted from planning to the implementation of plans, for a simpler organization with clear lines of authority, for fewer committees and more full-time operating agencies. In the autumn of 1950 the Canadian Government proposed reorganization of NATO to meet this need, and in December the Council authorized the deputies to study and recommend the necessary changes. The result is the structure announced today.

III. THE REORGANIZED COUNCIL

As before, the Council is the principal body in the North Atlantic Treaty Organization and is "charged with the responsibility of considering all matters concerning the implementation of the provisions of the treaty." The reorganized Council, however, incorporates not only the Council envisaged by article 9 of the treaty but also the Defense Committee referred to in the same article and the Defense Finance and Economic Committee. Both latter cease to exist as separate entities. The Council will continue to be composed of persons of ministerial rank, although in exceptional circumstances member governments may be represented by other persons duly designated for the purpose. Heads of Governments may attend meetings of the Council in person, Otherwise, Governments will be represented by their Minister for Foreign Affairs and/or the Minister of Defense, or by other competent ministers, especially by those responsible for financial and economic affairs, according to the nature of the agenda.

As hitherto, the Council will meet annually in ordinary session and such other times as may be deemed desirable by the majority of the parties.

IV. LOCATION OF SESSIONS

Location of each session will be determined by the chairman after consultation with the other parties. For general convenience, the ordinary annual session will normally be held at about the same time and in the same geographic area as the annual session of the General

1 Ibid. and the Final Communiqué of the Second Session of the North Atlantic Council, Nov. 18, 1949; supra, doc. 36.

2 See the Final Communiqué of the Fourth Session of the North Atlantic Council, May 19, 1950; supra, doc. 38.

See the Final Communiqué of the Sixth Session of the North Atlantic Council, Dec. 19, 1950; supra.

Treaty of Apr. 4, 1949; supra, pp. 812–815.

Assembly of the United Nations. Other ordinary sessions will normally be held at some convenient location in Europe.

V. CHAIRMANSHIP

The chairmanship of the Council will continue to rotate in alphabetical order. Paul van Zeeland, Foreign Minister of Belgium, is the present chairman. In order that the Council may effectively carry out its responsibilities and exercise them continuously, each Government is represented by a council deputy. Each deputy represents all ministers concerned with NATO matters in his Government and is responsible to such minister or ministers as his Government may determine. The Council Deputies, located in London, constitute the permanent working organization of the North Atlantic Council. VI. THE COUNCIL DEPUTIES

When the Council is not in session, the Deputies carry out its policies, recommend to Governments the measures necessary to this end, formulate issues requiring decisions by the Council or by member governments and otherwise constitute a body which may register the approval of their Governments on matters before them for consideration.

The deputies will also be responsible for coordinating the activities of and giving guidance to all other permanent organs of the North Atlantic Treaty Organization, exchange views on political matters of common interest within the scope of the treaty, promote and coordinate public information activities in furtherance of its objectives.

The chairman of the Council Deputies in addition to presiding at their meetings, is responsible for directing the permanent working staff of the organization.

VII. MILITARY STRUCTURE

With the exception of the incorporation of the former defense committee into the Council, the military structure remains unchanged. The Council Deputies will deal directly with the military committee and, when that body is not in session, with the standing group on political matters having military implications. It will provide those bodies with political guidance upon which strategic decisions should be based. The standing group will maintain close liaison with the Council Deputies and provide that body with advice on military

matters.

VIII. DEFENSE PRODUCTION BOARD

The Defense Production Board, which was established last December and has its headquarters in London, replaced the military Production and Supply Board and the subsidiary agencies of that committee. It has as its general objectives the achievement of the maximum production of military equipment in the most efficient manner, at the least cost, and in the shortest time to meet the military

1 See the Final Communiqué of the Sixth Session of the North Atlantic Council, Dec. 19, 1950; supra.

material requirements of NATO. These objectives will be sought by coordinating national production programmes so that they will together fulfill NATO-wide production objectives. The Board is directed to concentrate its activities on those aspects of military production and procurement which involve major problems of international cooperation among the NAT members. A unified international staff has been organized to serve the Board under a coordinator of North Atlantic Defense Production, who is ex officio a member of the DPD.

IX. CREATION OF THE FEB

The creation of the Financial and Economic Board (FEB) is another step toward simplifying and making more effective the executive organization of NATO. In this respect it follows the precedent established in the setting up of the Defense Production Board. According to its terms of reference, the new FEB:

shall be responsible for considering and making recommendation upon financial and economic problems arising in connection with NATO defense programs and upon the best use of financial and economic resources in member countries in support of the common defense effort. It shall advise the other NATO bodies under the Council Deputies on all relevant economic and financial questions arising out of their work.

The FEB will ordinarily address its recommendations to the Council Deputies, but in specified cases these may be sent direct to member governments.

The FEB will succeed to the functions and responsibilities previously belonging to the permanent working staff of the Defense Financial and Economic Committee, the advisory group on raw material prob lems, and the economic and financial working group, which was set up some months ago in Paris. Among its other tasks, it has been assigned the duty of reporting to the Council Deputies on the financial and economic aspects of progress of defense programs in member countries. It will also:

maintain close contact with the work of other international organizations dealing with financial and economic problems and in particular with the Organ ization for European Economic Cooperation (OEEC),1 having in view the need to avoid duplication of effort.

The FEB will be based in Paris so that it will be able to draw on the experience and skills of the OEEC. It is expected that governments will be represented on FEB by senior members of their delegations to OEEC so that close coordination of activities of these two bodies will be assured.

1 See supra, pp. 992-1000.

43. STATEMENT BY THE NORTH ATLANTIC COUNCIL (OTTAWA), SEPTEMBER 21, 19511

The peoples of the North Atlantic community are united under the North Atlantic Treaty to preserve their freedom and to develop their common heritage of democracy, liberty and the rule of law. During the past two years, since the Treaty came into being, North Atlantic countries have joined in collective efforts for their defense. They will continue to work together closely to consolidate the North Atlantic community. All obstacles which hinder such cooperation on an equal footing should be removed.

The persistent attempts which have been made and are being made to divide the peoples of the North Atlantic community will fail. Those who made these attempts do not understand the nature or the strength of the close ties between the free peoples of the North Atlantic community. The preservation of peace is the very essence of that community, and free discussion as to how this can best be done is a source of continuing strength.

It was the threatening international situation that brought 12 nations of the North Atlantic community formally together under the North Atlantic Treaty to create sufficient strength to preserve their freedom and liberty. A series of so-called peace offers as vague in language as they are obscure in content are made from time to time. The peoples of the North Atlantic community will test these offers by the deeds that follow them. They will never reject any genuine. move for peace, but will not be deflected from building up their defensive strength by mere empty words about peace.

The strenthening of the North Atlantic Treaty Organization in the past two years has developed in the minds of the peoples a strong sense of their common interests and ideals. There is a desire within the North Atlantic Community to meet specific needs in all fields where close collaboration will advance the welfare of the community. One source for the further development of the North Atlantic community is Article II of the North Atlantic Treaty which states:

The Parties will contribute towards the further development of peaceful and friendly international relations by strengthening their free institutions, by bringing about a better understanding of the principles upon which these institutions are founded, and by promoting conditions of stability and well-being. They will seek to eliminate conflict in their international economic policies and will encourage economic collaboration between any or all of them.

A clear sense of the direction in which the community is developing should make it easier to take practical steps towards that end.

The Council has therefore decided to set up a Ministerial Committee composed of representatives from Belgium, Canada, Italy, Netherlands and Norway, to consider the further strengthening of the North Atlantic Community and especially the implementation of Article II of the North Atlantic Treaty.

1 Department of State Bulletin, Oct. 1, 1951, pp. 524-525.