A DRAFT RECOMMENDATION on the European Economic Association
1. The Assembly,
2. Noting the satisfactory development of the European Economic Community since the first measures to eliminate restrictions on trade between Members of the Community were taken on 1st January this year;
3. Welcoming the views which leaders of the Community have expressed regarding the need for the Community to be outward-looking and to move in the direction of freer trade with non-member countries and in particular the other countries of 0. E. E. C ;
4. Noting the draft Plan agreed in Stockholm for a European Free Trade Association;
5. Noting with satisfaction the affirmation by the Ministers responsible for this Plan that it would be their purpose to facilitate early negotiations with the European Economic Community and also with the other Members of O. E. E. C. who have particular problems calling for special solutions;
6. Believing that the measures proposed for the progressive elimination of barriers to trade in the European Free Trade Association may contribute to the development of a multilateral association covering the whole of O. E. E. C, provided that the co-ordination of external commercial policies and general economic and social policies is taken into consideration;
7. Believing that the setting up of a second unified trading system makes it increasingly urgent, in the interest of all OEEC countries, to multilateralise the arrangements for freeing trade and that a failure to do so would perpetuate a division in Europe;
8. Drawing the attention of Governments to the particularly grave problems with which OEEC countries belonging to neither group are faced both in the short term and in the long term, and to the moral responsibility which member countries with more advanced economies have towards those whose economies are in process of development;
9. Welcoming in this connection the opening of negotiations between the Greek and Turkish Governments, on the one hand, and the European Economic Community, on the other,
10. Recommends to Member Governments :
(i) that they should sign, as previously recommended by the Assembly, Declaration of Intent by March 31st 1960 at the latest, which will :
a indicate the broad principles of an Association Agreement;
b define the extent of differential trade treatment which would continue during the period between the signing of the Declaration and the coming into force of an Association Agreement (which it is suggested should be possible by 1st January 1962);
c take also into account the co-ordination of external commercial policies and general economic and social policies to be achieved for the successful operation of the Association;
such a Declaration to be submitted to national Parliaments, as soon as possible after signature;
(ii) that, in working out the broad principles of t h e Association Agreement mentioned above, due weight should be given to any proposals from the Special Committee of the European Economic Community and the Official Committee of senior officials now drafting the Convention for a European Free Trade Association;
(iii) that, for this purpose, both Committees should be instructed by the Governments to which they are responsible to produce new proposals in sufficient time for agreement on the contents of the Declaration of Intent to be arrived at within the immediate future;
(iv) that parallel with the discussions now proceeding between Greece and Turkey, on the one hand, and the European Economic Community, on the other, regarding the form which an association between these parties might take, t h e Member Governments of the O.E.E.C. should examine possible solutions to the shortterm problems of export trade which countries belonging to neither the E. E. C. nor the E. F. T. A. now face;
(v) that the resumed negotiations leading to a Declaration of Intent and the conclusion of the Association Agreement itself, and the discussions among OEEC Member Governments referred to in Paragraph (iv) above, should in principle take place in 0. E. E. C. ;
(vi) that the 0. E. E. C. should resume its work for a multilateral Association, and consider what organisational rearrangements may be necessary to carry out this work most efficiently.
