First report to the Consultative Assembly of the Council of Europe on the activities of the Common Assembly of the European Coal and Steel Community from 10th September, 1952 to 30th June, 1954

Report | Doc. 319 | 28 October 1954

Thesaurus

Contents

CONTENTS

INTRODUCTION - 1332

I. THE COMMON ASSEMBLY, ITS POWERS, MACHINERY AND LEGAL STATUS - 1332

Powers - 1334

Parliamentary machinery - 1338

Legal status - 1342

II. THE ASSEMBLY IN ACTION - 1346

Common market - 1347

Investment and financial policy - 1364

Transport - 1362

Social problems - 1364

External relations - 1367

III. RELATIONS BETWEEN THE COMMUNITY AND THE COUNCIL OF EUROPE - 1370

CONCLUSION - 1377

1 INTRODUCTION

1. The Treaty instituting the European Coal and Steel Community stipulates, in Article 2 of the Protocol concerning relations with the Council of Europe, that the Assembly of the Community shall forward annually to the Consultative Assembly of the Council of Europe a Report on its activities [(1) Procedure for presentation of this report is laid down in Rule 43 b of the Rules of Procedure of the Common Assembly.]. For the first few months, the Community was occupied mainly with setting up its various institutions. The Common Assembly therefore considered it more appropriate in 1953 merely to transmit to the Assembly of the Council of Europe its collected official publications. In view of this, the present report covers the period from 10th September, 1952 to 30th June, 1954. Future reports will deal with the work of the Assembly year by year, i. e. by twelve-monthly periods beginning 1st July.

2. It has been borne in mind that this report, as expressly stipulated by the Treaty, is addressed directly to the President of the Consultative Assembly for the specific purpose of informing that Assembly of the activities of the Common Assembly. It deals, accordingly, with the following matters :

2.1 the powers, parliamentary machinery and legal characteristics of the Assembly ;

2.2 the Assembly in action ;

2.3 the role of the Common Assembly with regard to relations between the Community and the Council of Europe.

2 I - The Common Assembly, its powers, parliamentary machinery and legal status

3. The Treaty instituting the European Coal and Steel Community makes few provisions concerning the powers of the Common Assembly [(2) cf. Chapte II { of the Treaty, concerning the Assembly, Articles 20,25,]. It is composed of 78 representatives of the peoples of the Member States, designated once a year by the six Parliaments, from among their own members, or elected by direct univer-sal suffrage [(3) Up to the present time, Representatives have been appointed by the national parliaments. In a declaration dated 4th May, 1954, the six Foreign Ministers stated that, immediately upon the deposit of the last instrument of ratification of E. D. C, the Governments would take the necessary steps to replace the present Assembly by an Assembly elected on the basis of direct universal suftrage.], and it exercises "supervisory powers". Broadly speaking, these powers are concerned with the establishment and operation, by limited direct intervention, with the minimum of administrative machinery, and in permanent consultation with the parties concerned, of a new economic order, based on a common competitive market in coal and steel, for the purpose of expanding production, promoting employment and raising the standards of living of the Member States, in harmony with the general economy of those States and with due regard for the requirements of outside countries and of international trade [(4) Articles 2-5 of the Treaty.].

4. The means available to the Assembly, under the treaty, for the exercise of these functions are the following :

4.1 discussion in public session of an annual general report of the High Authority on the activities and administrative expenditure of the Community, to which is attached a general estimate of the cost of each institution, together with the Auditor's Report on the regularity of the accounting operations and of the financial management of the various institutions [(5) Articles 17, 24 and 78.];

4.2 the power of moving a vote of censure on the General Report which, if carried by a qualified majority, obliges the Members of the High Authority to resign in a body [(6) Article 24.];

4.3 the right to meet in ordinary session on the second Tuesday of May each year, and, in certain circumstances, to hold extraordinary sessions [(7) The annual ordinary session may not extend beyond the close of the fiscal year on 30th Juno (Article 22). An extraordinary session may be convened when requested by a majority of the members, or by the High Authority, or by the Special Council of Ministers.];

4.4 the right of the Assembly and of individual members to put written or oral questions to the High Authority [(8) Article 23.].

5. It is now possible, after two years of existence, to judge how the texts have been given practical application, and to form an idea of the way in which the Assembly has interpreted its mission, the means it has adopted to carry it out, the broad lines of its activities and its characteristic juridical features. The Assembly has passed beyond the stage — where it might have remained — of exercising supervision after the event to that of discussing the future policy of the High Authority. Its Committees keep a watchful eye on the activities of the Community. It has assumed a definite parliamentary character. By the conduct of its activities, the Assembly has shown that it is imbued with the consciousness of a European, and indeed human, mission.

Powers of the Assembly

6. The supervisory powers of the Assembly could have been interpreted literally as merely conferring the right to carry out an annual review of the results achieved, to decide whether the High Authority, which was responsible for the establishment of a new economic order, had, so far as could be judged from the General Report, fulfilled its obligations. But was this supervision to extend to the High Autority's methods of attaining the aims of the Treaty ? "Was the Assembly to take into its purview the future plans of the High Authority ? Was it to be content to express approval or disapproval of the measures taken, or should it not seek to influence those measures by its criticism and advice ? Even a brief survey of the work of the Common Assembly suffices to show that there has been a marked tendency towards sustained co-operation with the High Authority.

7. The Assembly has never underrated its privilege of commenting upon past decisions and activities ; nevertheless, it has always regarded this as being inadequate and the product of a narrow interpretation of the Treaty [(9) Official Report of the Common Assembly, 20th June, 1953 : MM. Buset, De Smet, Sassen ; 14th May, 1954 : M, Déboute,] - At its earliest meetings, it stressed the need for close co-operation with the High Authority [(10) 'Certainly the High Authority should have a free hand, provided it does not got on the wrong track or stoop to abuses. The best safeguard against that is to establish close co-operation between the High Authority and the parliamentary body,' (ibid. 12th January, 1953 — Schoene.)] and regarded its role as broader than one of mere approval or disapproval ; it held that its mandate included the right to inform, advise and, if need be, criticise the High Authority [(11) 'Our role is that of co-operation. Wo can give you useful information and advice on the planning of your general policy.' (ibid. 13th January, 1953, Wigny.) - 'Your Assembly . . . has taken the opportunity not only to supervise the steps taken by the High Authority, but also on occasion to criticise them. That is, in my opinion, one of the most important tasks of your Parliament.' (ibid. 20th June, 1953 — Kroyssig.)]. Not content with surveying the work accomplished by the High Authority, the Assembly inquires into its future plans and the broad lines of its general policy [(12) 'The confidonce which the Assembly is disposed to place in the High Authority must be based, not only on the activities of the latter, but also on its future plans.' (ibid. 20th June, 1953 : Korthals ; cf. also de Menthon.) - 'I hope that the High Authority, after reporting on progress achieved, will provide us with more details of the further measures it proposes to take, and will seek the opinion of the Assembly on those measures.' (ibid. 20th June, 1953 — Buset.)]. As these views were put forward, they received the full approval of the High Authority [(13) cf. statement s by M. Monnet (President) to the Common Assembly : - 'the High Authority hopes that wo may hove many occasions for joint meetings and that wo may regularly co-operate in the fulfilment of our common task.' (16th Juno, 1953.) - 'Your main concern is that all these joint meetings, the ordinary and extraordinary sessions of the Assembly, the meetings of committees, as well as providing an opportunity for examining measures already taken, should also bo an occasion for the High Authority to make a general statement on its interventions and future plans, and to hear the Assembly's comments. On this point, the High Authority fully agrees with you.' (23rd June, 1953.) - 'I should like to tell the Assembly that all its observations and criticisms, I shall go so far as to say its insistence on certain points, are valuable to us.' (16th January, 1954.)], and the Resolutions of the Assembly bear witness to the growth of cordial relations between the two institutions. Thus, in a Resolution of 23rd June, 1953, the Assembly "welcomes the declarations of the High Authority concerning relations between the Assembly and itself" and notes that "while taking the initiative and assuming the responsibilities incumbent upon it by virtue of the Treaty, the High Authority will inform the Assembly and the appropriate Committees in advance of the principles governing its proposed measures and the broad lines of its plans, will study their observations and acquaint them with the reasons for its final decisions ". Similarly, the Resolution of 19th May, 1954, welcomes the fact that "co-operation between the High Authority and the Assembly has developed favourably in the course of the past year through exchanges of views and increasingly frequent transmission of research and working papers" [(14) The Resolution of 23rd June, 1953 was printed separately. That of 19th May, 1954 is given in the Official Gazette of the Community for 9th June, 1954 (para. 2, p. 413).].

8. Another question that has arisen, however, is whether this general supervision of the activities of the High Authority constitutes the limit of the Common Assembly's powers. Relying on Article 17 of the Treaty, which stipulates that the General Report should deal with "the activities of the Community and its administrative expenditure", the Assembly has declined to take this view. In a Resolution adopted at the conclusion of its last Ordinary Session, it expressed the hope that future General Reports would be accompanied by a Report on the other institutions and organs of the Community [(15) Official Gazette of the Community, 9th June, 1954, p. 413. See also Official Report of the Assembly, 14th May, 1954 — M. Vixseboxse.].

9. The Assembly has continually sought to define more precisely its functions with regard to supervision of administrative expenditure. Taking the view that accounts and matters of general administration lie within its province, it has requested that the budget proposals of the other institutions should be submitted to it for examination, before they are finally transmitted to the Commission of Presidents, so that in considering the general estimates the latter may have all the facts before them [(16) A resolution to this effect was adopted by the Assembly on 11th March, 1953. The grounds for the request were that there was a danger of the general estimates, even after approval by the Commission of Presidents, being in effect rejected by the Assembly by means of a vote of no confidence in the High Authority. (Under Article 78 of the Treaty it is the Commission of Presidents, composed of the Presidents of the four institutions, which approves the general estimates.) - See also Official Report, 11th March, 1953 — Blank, Vermeylen.]. The Assembly has also been authorised to supervise the appropriation of credits in the course of the financial year [(17) At the Sitting of 15th June, 1953, the President of the High Authority stated : 'Wo have ourselves suggested that the Commission of Presidents should issue periodical statements which will enable you to keep a running check on the appropriation of crédits.' Estimates are drawn up for six-monthly periods. (Official Report, of Common Assembly, 10th Juno, 1953 — M. Vermoylon.)]. At the Ordinary Session of 1954, the High Authority transmitted to the Assembly a short statement of receipts from the levies and appropriations for various activities of the Community. The Assembly, however, regretted the absence of information on receipts from the equalisation levy and on the amount of the funds held by the High Authority in the Member States [(18) Ibid., 14th May, 1954 — M. Sasson.]. The High Authority agreed to the Assembly's request that it should append to the General Report a review of the estimated receipts of the Community and their application to non-administrative purposes [(19) Common Assembly — Official Report, 14th May, 1954 — M. Sasson ; 17th May, — M. Wehrer, (High Authority); 19th May, 1954 — M. Monnet (Presidont). See also Resolution of the Assembly, 19th May, 1954.]. There is a strong feeling in the Assembly, it must de said, that it should at an early date be invested with similar financial powers to those of a national Parliament [(20) See also Pünder, Struye and Pohle, 14th May, 1954.].

10. Effective co-operation exists between the appropriate Commission of the High Authority and the Accounts and Administration Committee of the Assembly on questions concerning the staff regulations of the Community, just as in matters of administrative expenditure [(21) Common Assembly — Official Beport, 14th January, 1954 — M. Sassen ; 17th May, 1954 — M. Finet (High Authority).].

Parliamentary machinery

11. While seeking to definee its functions, the Assembly was engaged in devising the necessary machinery for discharging them. Under its own Rules of Procedure it was empowered to set up standing or temporary committees, both general and ad hoc, the members of which could, by arrangement with the Bureau, undertake special studies or fact-finding missions [(22) Rules of Procedure of the Common Assembly : Rule 35 et seq.]. The Assembly has made increasing use of this apparatus as well as of its statutory powers to hold ordinary or extraordinary sessions and to put written or oral questions to the High Authority.

12. As early as September, 1952, the Assembly took up the question of the formation and terms of reference of committees. An organising Committee waa appointed to decide on the number, composition and terms of reference of the committees necessary for the efficient conduct of the Assembly's affairs. Seven committees were set up in January, 1953 [(23) The Organising Committee has met on four occasions and has submitted two reports. The Provisional Committee on Rules of Procedure and Accounts held three meetings between 21st November, 1952 and 9th January, 1953, and published a report. The activities of the 7 standing committees of the Assembly since January, 1953 may be summed up as follows : Committe e on the Common Market : 12 meetings, 3 reports ; — Committe e on Investments, Finance, and Production Development : 14 meetings, 3 reports ;Committe e on Social Problems : 15 meetings, 3 reports ;Political and External Relations Committee : 8 meetings, 3 reports ;Transport Committee : 9 meetings, 3 reports ;Account s and Administration Committee of Community and Common Assembly : 9 meetings, 5 reports ;Committe e on Rules of Procedure of Common Assembly, Petitions and Immunities : 10 meetings, 3 reports ; Of the above Committees, the first four are known as the 'main Committees' and have twenty-three members, while the remaining three 'small Committees' have nine members.], since when they have played an increasingly substantial part in the activities of E.C.S.C. The Assembly considered that, between Sessions, the Committees were required to keep in touch with the High Authority and other organs of the Community [(24) 'It is the task of the committees to maintain contact with the High Authority and the organs of the Community during the intervals between sessions of the Assembly. Between, and indeed during Assembly sessions, the Committees must ensure that the questions submitted to the Assembly have been thoroughly prepared.' (Common Assembly — Official Report ; 12th September, 1952 — Wehner.)]; to be consulted by the High Authority before it took decisions [(25) 'The Committee on Social Problems feels that it should as a rule bo consulted prior to the taking of any economic or financial decision, so that the social repercussions of such decisions may bo examined.' (ibid. 15th Juno, 1953 — Bertrand.)]; to gather the information required by the Assembly to exercise parliamentary control [(26) The Investments Committee's desire for precise information was stressed at the Sitting of 15th January, 1954 by M. do Menthon. Similarly, M. Buset declared on 20th June, 1953 : 'The work of the committees should not now bo confined to examination and criticism after the event . . . they should try to arrive at definite findings on which there can be no misunderstanding between themselves and the High Authority.' - See also Bertram and Kroyssig (20th Juno, 1953), Vendroux (13th May, 1954), and the statement of the President, M. Monnet, (23rd Juno, 1953) : 'The High Authority will keep the Assembly and the appropriate committees informed in advance of the main principles of its activities and the broad lines of its plans ; it will study their observations and acquaint them with the reasons for its final decisions.'], and to exercise that control on behalf of the Assembly between Sessions [(27) In a Resolution of 16th January, 1954, the Assembly instructed its Investments Committee to exercise on its behalf, between sessions, supervision over the general policy of the High Authority in the matter. A further Resolution of 19th May, 1954 delegated certain supervisory powers of the Assembly to its Committees on Investments and on the Common Market.]. A number of committees have arranged, by agreement with the High Authority, to hold meetings at regular intervals [(28) Committes on Common Market, Investments, and Social Problems.]. Apart from certain criticisms regarding delay and inadequacy of information supplied, co-operation between the parliamentary and executive bodies of the Community has up to now been satisfactory [(29) 'I have given an undertaking to the Committee (on Investments), and I confirm that undeitaking here, that the Committee will be kept informed of the activities of the High Authority. In respect of all aspects of its general policy, its aims and standards, the High Authority will take no final decisions without discussing with the Committee the reasons for those decisions.' (Common Assembly — Official Report, 16th January, 1954 — Statement by the President of the High Authority.) - There have been numerous references in the Assembly to the cordial co-operation between the High Authority and the committees ; (cf. ibid. 15th June, 1953 and 14th January, 1954 — M. Sassen ; 14th May 1954 — MM. Struye, Pohle). See also the report presented to the Assembly in May, 1954 on behalf of the Investments Committee by M. de Menthon. The report presented in the same month by M. Korthals on behalf of the Common Market Committee, was more critical : 'The Committee wishes to point out that arrangements for consultation have not been entirely satisfactory. Discussions have been concerned to much with measures already taken by the High Authority and points raised by Committee members. The High Authority has not offered sufficient opportunity for discussing the governing principles of its work nor its general schemes.'].

13. It has been agreed by the High Authority that the Assembly, in order to carry out its supervisory function, was entitled to full information [(30) 'The High Authority should place the parliamentarians in possession of all relevant information so that they may come to a definite decision.' (Official Report, 20th June, 1953 — M. Motz.) 'I claim that the supervisory powers of the Assembly include the right to the necessary information as and when available.' (ibid. 20th June, 1953 — M. Sassen.) - 'The High Authority fully appreciates that parliamentary control cannot be confined to a single annual session and based on the information provided by a report transmitted to the Assembly one month in advance.' (M. Monnet, 23rd June, 1953.)]. The position adopted in this matter emerges from resolutions of the Assembly and speeches delivered at its public Sittings [(31) The Resolution of 10th January, 1954 states, in reference to investments policy, that 'The Assembly wishes to be supplied with more precise information on these points, by transmission of the findings of all inquiries into and consideration of this matter.' - Similarly, in a Resolution of 19th May, 1954, The Assembly welcomes The fact that 'co-operation between The High Authority and The Assembly has developed favourably in The course of The past year through exchanges of views and more frequent transmission of research and working papers'.]. The Rules of Procedure of the Assembly, as we have seen, provide that its members may-carry out first-hand studies or investigations [(32) Common Assembly — Rules of Procedure, Rule 37 : 'Any Committee may, by agreement with The Bureau of The Common Assembly, request one or more of its members to carry out local studies or inquiries.' - The question was raised as early as 12th September, 1952, by M. Debré : 'In connection with The study of important matters, it would be a useful plan if members of The Assembly could be authorised to spend more or less protracted periods on The spot in order to gain a familiarity with The subject that many of us do not possess.']. In 1954, five members of the Social Committee carried out a first hand investigation into workers' housing conditions [(33) Common Assembly : Ordinary Session, 1954 — Report of The Committee on Social Problems on The enquiry of a Sub-Committee (14th-21st February, 1954) into The basis of a housing policy, presented by M. W. Birkolbach.].

14. Members of the Assembly have also availed themselves of their right to question the High Authority [(34) There is a distinction between questions put by the Assembly and private members' questions (see Article 23 of The Treaty and Rules 25 and 41 of the Rules of Procedure).]. Since January, 1953, sixteen written questions have been tabled [(35) Questions and replies of the High Authority are published in The Official Gazelle of the Community.]. There have been numerous oral questions in the Assembly; at the 1954 Ordinary Session, 54 such questions were asked on matters of social policy alone [(36) Common Assembly — Official Report: 17th May, 1954 — Statement by M. Finet (High Authority).].

15. The Assembly has met fairly frequently, as the High Authority itself on occasion convenes extraordinary sessions [(37) Apart from the two special sessions stipulated by the Treaty, which were held in September, 1952 and January, 1953, and in addition to the ordinary sessions of 1953 and 1954, the Assembly met in extraordinary session in March, 1953 and January, 1954. A further extraordinary session is to be held in October next. President Monnet stated in 1952 that the High Authority was prepared, in accordance with the provisions of the Treaty, to authorise extraordinary sessions of the Assembly (Official Report : 11th September, 1952).]. These are becoming more and more the rule, since the High Authority has declared that ' ' six months must not go by without a meeting between itself and the plenary Assembly" [(38) Ibid. M. Monnet, 13th May, 1954.], and the Assembly has passed a Resolution calling upon its President to convene the Assembly in extraordinary session, at the latest four months after the opening of each financial year [(39) This Resolution, which does not come into force until 1st July, 1955, instructs the President of the Assembly 'to take the necessary steps . . . to convene the Assembly in extraordinary session after the close of each financial year on 30th June. 'Arrangements should be made for a session of the Common Assembly, at the latest four months after the opening of the new financial year, for the purpose of verification of credentials, election of the President and Bureau of the Assembly, appointment of Committees and election of their Chairmen and Vice-Chairmen.'].

Legal status

16. In order to define its legal position and to establish its internal organisation, the Assembly has applied the rules of interpretation of constitutional law, as it had done in the case of its functions and those of the Community. M. Robert Schuman, we may remember, had stressed the supranational character of the institution [(40) Statement in the Consultative Assembly of the Council of Europe — 10th August, 1950 : 'Finally, it is proposed to provide a supreme sanction applicable against the administration as a whole, and not merely in regard to a single decision. It will appertain to a supranational Political Assembly to pronounce this sanction, at the conclusion of a discussion which it will hold on the Annual Reports submitted by the Authority.'], and it was further defined by a Committee of Jurists [(41) Council of Europe — Consultative Assembly : Opinion on the .participation of observers of the Council of Europe in the Common Assembly and on the conclusion of an agreement to this effect, 1952 - The Legal Exports who drafted this Opinion contended that supranational status derived from the following facts : — the Treaty instituting the E. C. S. C. implied not only limitation but transfer of sovereignty on the part of the signatories ; — i t had established direct relations between the institutions and the nationals of the Community countries ; — the institutions of the Community, in particular the Common Assembly composed of representatives of the peoples, enjoyed a certain independence vis-à-vis the Member States.].

17. From this supranational character it was argued that the Common Assembly, although lacking some of the functions of national parliaments could, nevertheless, be classed as a parliamentary Assembly [(42) The constitutional problem gave rise to numerous discussions in the Common Assembly — cf. in particular, the speech of M. Dehousse, 14th May, 1954. The method of appointment of members of the Common Assembly, the right to censure the High Authority — i. e. to overthrow the executive, — the right to meet at certain periods of the year without special convocation, the supervisory powers — all these are features which confer upon the Assembly the characteristics of a parliament. But exercise of the right of censure has proved to be a difficult matter, and the Assembly does not pass laws nor adopt budget proposals. Furthermore its members are not elected by universal suffrage. the Common Assembly may therefore bo described as mid-way between an orthodox international assembly and a Parliament.], and any doubt on a question relating to its status could be resolved by reference to traditional parliamentary law [(43) cf. Opinion of the Jurists, op. cit.].

18. As a parliamentary Assembly, the Common Assembly is sovereign, and from this sovereignty [(44) This sovereignty has never been contested : cf. declarations of M. Monnet : 'This Assembly is sovereign within the limits of its competence' (11th September, 1952) ; 'all those who took part in framing the Treaty were anxious that the Community should possess a sovereign Assembly' (13th January, 1963). Similarly, Chancellor Adenauer, President of the Special Council of Ministers, stated to the Assembly on 11th September, 1952 : 'You are the first sovereign supranational Parliament in the history of Europe.' - See also, 12th September, 1952 — MM. Azara, Teitgen.] the autonomous functions of its members derive. This principle has been applied in the framing of its Rules of Procedure, the preparation of financial estimates and the organisation of its secretariat.

19. In September, 1952 the High Authority instructed the General Secretaries of the six Parliaments of the Community and the Clerk to the Assembly of the Council of Europe to make the necessary arrangements for the opening session of the Common Assembly and to frame provisional Rules of Procedure, the object being to preserve the sovereign character and powers of free decision of the new Assembly [(45) M. Monnet — Statemen t to the Assembly, 11th September, 1952.]. In the final draft of its Rules of Procedure, the Assembly took due account of the parliamentary tradition by which strangers are debarred from intruding upon the work of a Parliament [(46) See Opinion of Legal Experts, op. cit. 'It has been found necessary in the Treaty to follow this tradition by authorising explicitly the members of the High Authority and the Council of Ministers to attend all meetings of the Assembly and to be heard at their request.']. Thus with regard to attendance at committee meetings, the Assembly has decided "to abide by the rule that a special decision is required for the admission to or hearing of any person to a delegate to the Assembly, whether he be a member of the Special Council of Ministers, or of the High Authority, or any consultant or official whom it may be considered useful to invite" [(47) Common Assembly — Ordinary Session, 1954 : Report of the Committee on Rules of Procedure, Petitions and Immunities, on admission of members of the Special Council of Ministers to meetings of Common Assembly Committees, presented by M. Paul Struye.]. It was for this reason that the Common Assembly could not comply with the suggestion of the Consultative Assembly of the Council of Europe regarding joint meetings of Committees of the two bodies [(48) This question is dealt with in the third part of the present Report.].

20. The Rules of Procedure of the Common Assembly also provide, in accordance with parliamentary custom, for the formation of political groups [(49) The need for political groups was stressed by several delegates ; cf. Declaration of M. Guy Mollet (11th March, 1953) : 'The Assembly itself recognizes the importance of political groups. It has been several times suggested that, as time goes on, less importance should be attached in the composition of Committees to nationality, and more to political groupings as they become apparent at the European level.' Also M. Sassen at same sitting : 'In the work of this first supranational Parliament with effective powers, it is just as necessary (as in a national Parliament) that the groups which have taken shape in the Assembly as various political tendencies have emerged, should function efficiently.' - For the opposite view, see speeches by MM. Debré and Struye, who protested against the financing of these groups by the Assembly (14th January, 1954).]. There are three such groups, Christian Democrat, Liberal, and Socialist [(50) The formation of political groups formed the subject of a Resolution of 16th Juno, 1953, winch became later Rule 34 of the Rules of Procedure. A statement on this point was published in the Official Gazette of the Community for 28th April, 1954.]. Chairmen of groups may be invited to attend meetings of the Committee of Presidents [(51) See Rules 11 and 12 of the Rules of Procedure. the Committee of Presidents is composed of the President and Vice-Presidents of the Assembly and the Chairmen of Committees. 'It is convened by the President of the Assembly at the opening of each session or on such other occasion as he may deem necessary, in order to examine the order of business and to prepare a draft Agenda for the Sittings.' 'One member of the High Authority and one member of the Council, and the Chairmen of the political groups of the Common Assembly, may attend meetings on the invitation of the President.']. They are also required to be represented on the Drafting Committee which prepares the resolution embodying the reply to the annual General Report on the activities of the Community [(52) This procedure was observed in the preparation of the draft Resolution submitted to the Assembly towards the end of the 1954 Ordinary Session.]. Political groups have begun to appoint their spokesmen at public sittings [(53) M. Carcassonne spoke for the Socialist group on 14th May, 1954 ; M. Laffargue for the Liberal group on 14th May ; M. Sassen for the Christian Democrat group on 15th May.]. The democratic and supranational character of the Common Assembly is accentuated by the existence of these political groups. It will be further strengthened if and when the members of the Common Assembly, instead of being designated by the national Parliaments as at present, are elected by universal suffrage [(54) cf. Official Report, 19th May, 1954 — Dehousse and amendment by MM. Dehousse and Jaquet.].

21. With regard to its independence in matters of finance and administration the Assembly considered that the Committee of the Four Presidents had no power to intervene in the preparation of its individual budget, since this might present the Assembly from setting up the machinery which it considered necessary [(55) ibid. 14th January, 1954 -— M. Sassen : 'If any administrative organ of the Community other than the Assembly were to bo in a position to hamper the Assembly's freedom to set up the departments it considers necessary for the discharge of its supervisory duties, that would legally speaking be an impairment of the basic principles of the Assembly's sovereignty ; to put it another way, if that possibility existed de facto, it would have to be rejected de jure.']. The Assembly has insisted on sole responsibility for the appointment, promotion and discipline of members of its secretariat [(56) 'Parliamentary officials are responsible only to the authority of Parliament, and no disciplinary measure may be taken against them except by Parliament and its Bureau. It may be possible to co-ordinate the legal status of officials of the four institutions, provided that account be taken of the special character of the Assembly and its autonomy with regard to selection of officials, conditions of employment, discipline and right of appeal' (Common Assembly — 1954 Ordinary Session : Supplementary Report by M. Sassen).].

3 II - The Assembly in action

22. The Committees setup in January, 1953 correspond to the main activities of the Community and the major problems which the Treaty appears to set: the common market and free competition, investments and the expansion of production and the question of transport, the latter being closely bound up with the others. Economic and technical problems cannot be. treated without regard for social and human considerations. To these internal concerns of the Community must be added that of its relations with outside countries. These automatic factors, together with the decisions of the Assembly, together make up a framework within which its activities may conveniently be summarised.

Common Market

23. Despite all the precautions taken, the development of competition within a coal and steel market gradually freed from the national watertight compartments, which constituted both a hindrance and a protection, could not fail to involve certain changes, as became apparent from a careful study of the evolution of trade and production. It would, of course, be vain to try to assess how far the common market either reduced or accentuated the effects of the general economic recession, but the Assembly has, nevertheless, wished to be kept informed as precisely as possible of all significant factors (flow of trade within the Community and with outside countries, variations in production, stocks etc.).

24. From an examination of these factors it seems clear that the Community has suffered neither any crisis in the sense of Article 58 of the Treaty nor any shortage in the sense of Article 59. Between these two extremes, however, the situation, which could have called for no greater intervention on the part of the High Authority than that provided for under Article 57, proved fluctuating, and the rises and falls above and below the ideal norm justified neither marked apprehension nor any particular satisfaction.

25. As from the beginning of 1953 the Common Market Committee undertook the study of the repercussions of the High Authority's measures for the establishment of the common market within the framework of current economic developments. As a result it advocated a general expansionist policy to regularise or influence consumption, coal and steel production not being an end in itself but a means of securing services and consumer goods, tho control of which falls not to the High Authority but to the national Governments. It accordingly expressed satisfaction, as did the plenary Assembly, with the statement issued by the Council of Ministers on 13th October, 1953 [(57) The six Governments agreed without further delay to consider jointly with tho High Authority tho adoption of a general expansionist and investment policy in order to regularise or influence general consumption — more especially the use of tho public services — with a view to harmonising this general development and the programmes of the Authority (Official Gazette of the Community, 27th October, 1953).] and the wish expressed closely to follow the joint studies to be undertaken by the Governments and the High Authority. The Common Market Committee also expressed anxiety that no agreement had yet been reached on the methods to be adopted for observing current trends. It unanimously requested to be kept informed quarterly of the reports drawn up on the subject by members of the specialised national institutes, meetings between whom had wisely been arranged by the High Authority. This desire of the Committee to improve the methods of studying and predicting economic trends was no doubt partly due to disappointment over the frustration of certain somewhat premature hopes about the economic expansion which the common market would bring in its wake.

26. The rise in trade and the increased interpénétration of markets, which paves the way to the geographically logical organisation of supplies, has not yet become sufficiently marked — particularly in view of a strong tendency for supply to exceed demand — to warrant any encouraging conclusions being drawn as to the reality of the common market, which can only gradually manifest itself. Whatever the relative importance of the figures on this increase in trade, it only partly explains the steep drop in imports of American coal. This is also attributable to other causes, more especially the resumption of imports from the United Kingdom, which still remains for several Members of the Community the traditional supplier; the Community buyers are, moreover, more familiar with British coal and its origins. The decline in imports from America is also partly due to a slight rise in production in certain coal-fields and a fall in consumption. Lastly, mention should be made of the introduction of an equalisation system in respect of Belgian coal [(58) cf. Repor t presented on behalf of the Common Market Committee by M. Korthals — Ordinary Session, 1954 POP, NO. 13, para. 9.].

27. The coal market has abruptly returned to an even balance between supply and demand, the former often exceeding the latter in many-categories. This reversal of the trend prevailing for the short period following the Korean war really only reflects a growing tendency since the first world war towards a decline in coal consumption and the development of alternative sources of energy. This trend — which has not affected the almost continuous rise in industrial activity — has led to a spectacular accumulation of stocks, which has, naturally, somewhat alarmed the appropriate Assembly Committee, in view of the maintenance by the High Authority of a system of maximum prices. The Assembly, too, has expressed some anxiety on this point, certain Representatives having queried whether the maintenance of ceiling prices was really compatible, first with falling consumption and the emergence of rival products (fuel oil, natural gas, etc.) and, secondly, the appreciable drop in North Atlantic freight rates.

28. This price problem, however, also involves other factors and appears to be directly bound up with that of the sales organisations [(59) cf. Korthnl s Report — op. cit., chapter on 'Ceiling prices and cartels', paras. 28—34.]. The coal market is indeed far from being a freely competitive one, and may never become so [(60) cf. Common Assembly — speech by M. Sohoone — 15th May, 1954 : 'It should be clear to everyone that a fully competitive market belongs to the realm of theory only ; it has never been and never will become a practicable proposition'.]. In the autumn of 1953 the Common Market Committee investigated how far the fact that the price-schedules of the coal-fields, despite the prevailing situation, continued to adhere to the authorised maximum prices was due to the existence of centralised sales organisations in the principal coal-fields of the Community. The High Authority appears to have shared this view and to have decided to maintain the fixed maximum prices for a further period. This decision did not meet with the unanimous approval of the Assembly Representatives, however, some of whom thought it would be playing into the hands of the sales organisations. In their opinion the maintenance of ceiling prices at a level often higher than that of world prices might appear officially to sanction a state of constant tension on the coal market justifying the policy of these organisations of keeping price levels as high as possible. Other Representatives, on the other hand, shared the view of the High Authority, fearing that the abolition of maximum prices in the coal fields in question might lead the cartels to raise their own scales, and pointing out that the new maximum prices imposed were partly lower than those they had superseded. These Representatives, moreover, felt it impossible to dissolve the cartels immediately, particularly in the Ruhr, without running the risk of a collapse in the whole price system, with all the grave economic and social repercussions which such an upheaval in the equalisation system governing categories and the level of employment would entail.

29. The Assembly, however, being unwilling to tackle the problem of agreements by the indirect method of prices, sought its legal justification for a campaign against the cartels in Article 65 of the Treaty. "While realising that the problem is too complex for any speedy solution to be found and that careful study is essential [(61) cf. Korthal s Report, op. cit. para. 28. cf. also speech by M. Blaisse on this subject : 'The High Authority should take thorough action. This is fully justified. I think I may say that we have already delayed needlessly and too long. .. It is certain to my mind that the sales organisation of the Ruhr coal mines, the working methods of the 'Charbonnages de Prance' and the way in which coal imports are effected in France (ATIC) run counter to the terms of the Treaty. 'Some liquidation or transformation is called for here. Whatever the new forms of organisation which can be created within the framework of the Treaty, they... should, I repeat, in all cases be based on co-operation between employers, workers and consumers under the control of the High Authority', (Common Assembly — Debates? — 14th May, 1954).] it has repeatedly urged the High Authority to take vigorous action in this direction. Even though the final version of the Treaty takes an openly competitive line, it should not be forgotten that this is a systematic form of competition and subject to the fundamental principles of non-discrimination, equal access to sources, improvement in the living conditions of workers, etc. Now, not only do certain agreements not conflict with these principles but their overhasty dissolution might make it more difficult to apply these principles. It is possible, for instance, as has already been mentioned, that the equilibrium maintained in the production conditions of certain coal-fields by means of the decentralised sales organisations could not be abruptly upset without having painfully adverse effects in the social sphere [(62) cf. Commo n Assembly — Ordinary Session, 1954 — Report presented on behalf of the Social Committee by M. Birkelbach, para. 8.]. Furthermore, the ruthless suppression of a centralised purchasing organisation might place certain powerful consumers in privileged positions, which would hardly be consistent with the principle of equal access to sources. The firm yet cautious terms in which the Assembly couched its Recommendation on cartels at its last Session [(63) Resolution on the General Report of the High Authority, paras. 17—23 — more especially : - 'The Assembly... - . . .while bearing in mind the other possibilities provided for in para. 12 of the Convention relating to the Transitional Provisions, expresses the hope that in pursuance of these provisions all such institutions as it is advisable to maintain from the economic and social point of view shall undergo some appropriate form of transformation and that, if necessary, any institutions which run counter to the terms of the Treaty shall be abolished'.] should therefore cause little surprise.

30. It might appear easier to adjust the steel market to competitive conditions than the coal market. The greater flexibility of the steel industry, whose production capacity depends less on manpower than on the amount of capital invested, permits sharp fluctuations in production without having any marked effects on employment. The Community's capacity at the time of the opening of the common market in May, 1953 was, moreover, such as to offer no difficulty in satisfying demand, with the result that the High Authority felt it should give undertakings full liberty to fix their own prices. In actual fact, no doubt as a reaction against ceiling prices so long imposed by the national authorities, producers in most Member States tended to raise their prices by sums representing not only the amount of the levy but also a higher margin of self-financing. This somewhat unexpected rise in price-schedules caused no little anxiety to certain Members of the Assembly, and the Common Market Committee has reviewed this question on several occasions [(64) Korthals Report, op. cit. para. 17.].

31. The fall in consumption which in 1953, despite the increase of trade within the Community, was 6.4 % lower than the 1952 level for the six member countries as a whole and even dropped as much as 20 % in the ease of certain countries, did not fail to affect prices and to give rise to transactions which should have led to a change in the scales. The Committee, which followed with the closest attention the results of the new system of free pricing introduced into the steel market, soon noticed that the decisions of the High Authority on commercial transactions were not being observed and that the true prices did not correspond to the published scales. The variations introduced into steel prices (somewhat surprising in an industry more often than not criticised for its undue partiality for agreements) contrasted strangely with the faithful adherence of coal transactions to the fixed scales and hence, as stated above, to the authorised maximum prices. Could this have been due to an over-solemn procedure for the introduction of new scales which resulted in certain producers hesitating to alter their price-levels too quickly for fear these might shortly have to be restored? Was it not also, as in the case of France, the administrative control measures themselves which made producers reluctant to publish reductions in price for fear that they should be unable to rectify them afterwards should there develop increased demand ? - Whatever the reason, such clandestine practices made it possible for it to be said that it was not a case of a common market but of a black market. The extent to which Article 60 could be enforced, moreover, was much debated [(65) cf. Korthal s Report — op. cit. para. 21.]. The Common Market Committee regretted the fact that it was only after the event that it was informed of the action taken by the High Authority to make scales more flexible, leading to a margin of 2.5 % to cover variations in demand. This called for a countervailing and effective control over transactions. The present tendency towards a fairly stable balance between supply and demand has to some degree reduced the urgency of this question [(66) As the present Progress Report covers only the first two financial years, it does not record market developments during the second part of 1954, which have given a general impetus to the steel industry.] on which the Assembly has not as yet taken a firm stand but merely reiterated the importance it attaches to price reductions [(67) cf. Resolutio n relating to the General Report of the High Authority for 1953—1954. Para. 15 speaks of lowering prices in order to : — strengthe n the competitive position of the coal and steel industry and finishing industries ; — develo p consumption ; and — promot e the economic expansion of countries of the Community.].

32. It was the process of establishing the common market for crude ore that caused the High Authority the least trouble. The position can be summed up as follows : while certain countries of the Community were large-scale producers, others were anxious to develop their imports. No difficulty was encountered in carrying out this adjustment through the elimination of "dual-pricing", which was greatly facilitated by existing links beween steel-works and iron ore mines. Here, in any case, price reductions can certainly be attributed to the existence of the common market.

33. The Common Market Committe took particular note of the evolution of the highly complex scrap market, of the measures adopted by the High Authority to prevent any undue disturbance and to ensure regular deliveries to those countries who were in vital need of them. "While acknowledging the fact that its special characteristics precluded wholly free competition the Committee, nevertheless, expressed the wish that for the scrap market competition should be afforded the greatest possible latitude [(68) cf. Korthal s Report, op. cit. para. 14.].

34. Finally, to complete the picture, it should be noted that the Common Market Committee has stressed the special need to deal with the existing disparity, so far as fiscal and social burdens are concerned, if the common market is to work smoothly. It regrets the fact that the proposed consideration by Governments of fiscal readjustments should have been postponed from December, 1953 till the middle of 1954 [(69) cf. Korthal s Report, op, cit. para. 37.].

Investments and Finance

35. The study of governmental receipts and expenditure is an essential feature of parliamentary control : hence the capital importance attached by the Common Assembly to financial matters. Moreover, the establishment of the common market — one of whose major aims is to raise the standard of living and thereby production — demanded that close consideration be given to expansion programmes and the methods by which they were financed, giving rise to a problem involving matters of principle and application of which the Assembly quickly appreciated the urgency. The Assembly's views and preoccupations on the subject are mainly reflected in the work of the Committee on Investments, Financial Questions and Production Development.

36. The Treaty makes few stipulations on the subject of investments. Although Article 46 does require the High Authority to publish general objectives and programmes from time to time, the other Articles merely . provide for the possibility of intervening where necessary. In these circumstances the High Authority was particularly enjoined to obtain the support of the Common Assembly and its appropriate Committee in drawing up its investment policy. During the first Ordinary Session in 1953 the Committee decided to divide the problem into three main parts :

a General targets of the High Authority — i.e. the level of production to be aimed at within a given period.

b Financial means of achieving these general targets.

c Method of distribution of available financial resources — i.e. choice of investments.

37. "With regard to the general targets the Committee of Experts, at a meeting held in November, 1952, under the Chairmanship of Professor Tinbergen, drew up an expansion programme to meet an increased coal demand of 20 million tons and a steel demand of 8 million tons over the following five years (1952 onwards). At other meetings, moreover, it was stressed that the Community's coal resources were inadequate, its steel consumption low compared with that of other major countries, such as the United States, the U.S.S.R. and the United Kingdom, the housing conditions of workers in the Community's industries bad and the financial resources of these industries precarious. Furthermore, an enquiry carried out by the High Authority into the amount of current investments in the various enterprises revealed the existence of programmes of some 5,000 million dollars, two of which had already been spent more or less in accordance with tho aims proposed by the Tinbergen Committee, being mainly directed towards developing the production of rarer qualities of coal and in the case of steel, expanding the capacity, lowering the cost price and improving the quality. These various proposals were regarded by the Committee as a first rough guide requiring more detailed study. In particular the Committee sought to ascertain whether the High Authority, having defined its general targets, proposed to draw up a definite plan setting forth the annual objectives, to be achieved over the next four to five years. The High Authority declared its intention of confining itself to general targets and not tying itself down to a rigid plan.

38. In respect of financing, the Committee duly noted the decision of the High Authority to impose a levy of 0,9 % on coal and steel production to help finance the guarantee funds provided for in the Treaty, but expressed some disquiet about the high rate of this levy. It also wished to know how the current rates of interest prevailing on the capital market of certain Members of the Community might be substantially reduced. With regard to the choice of investments, certain Committee members expressed doubts about the soundness of a policy of giving enterprises free rein to fix their own output programmes. In the circumstances the Assembly decided it could not. await the 1954 Ordinary Session before receiving full details of the information obtained by the High Authority and its policy on this subject, thus showing the importance it attached to the investment question and its desire to extend its authority in this field of such vital concern to the Community.

39. The Common Assembly met in extraordinary session in January, 1954, and, it then became clear from the report given on the economic situation of the Community that, although the coal and steel trade between the various Members had risen, consumption had fallen and in some cases substantially declined as compared with the previous year. Thus the debates were dominated by two main considerations : first, that the common market was beginning to get under way, but, secondly, that some caution should be observed as to the chances of raising consumption levels in the foreseeable future. Apparently, the information already supplied by the High Authority did not fully satisfy the Members of the Assembly, some disappointment having been expressed in this respect both in the preparatory documents for the Session and in certain speeches [(70) cf. Commo n Assembly, Extraordinary Session, January, 1954, Debates — Statement by M. Guy Mollet — 14th January, 1954.]. This debate, however, provided the Assembly with an opportunity to pass a Eesolution which may be regarded as its official view on the subject.

40. First of all, the Assembly directed attention to the importance it attached to clearly re-affining and defining the responsibilities of the High Authority in the investment field, seeing that, under the terms of Article 46, it was specifically and periodically required to "draw up non-compulsory programme forecasts dealing with production, consumption, exports and imports" and to "work out general programmes with respect to modernisation, the long-term orientation of manufacturing and the expansion of productive capacity, while under Article 54 it was granted special powers to "encourage a co-ordinated development of investments" [(71) cf. Resolutio n of 16th January, 1954 — Official Gazette of Hie Community of 12th March, 1954, p. 242.]. The Assembly considered that the High Authority did not yet possess sufficient information to be able to fix any general targets or start trying to co-ordinate undertakings, and that, in any case, the Investment Committee should be given an opportunity to examine these targets before they were finally adopted. It agreed with the High Authority, however, on the need for joint action alongside the Governments to regularise and influence general consumption by means of a suitable investment policy for the consumer industries, particularly the public services [(72) cf. Statemen t by tho Ministers of 13th October, 1953 — Official Gazette of 27th October, 1953.].

41. It endorsed certain principles of action proposed by the High Authority, particularly with a view to a more sober estimate of expansion possibilities :

reduction in cost prices of steel ;

increas e in coal production to be limited to 15 million tons and confined to coking coal ;

priority allocation of a large part of financial resources for workers' accommodation.

The Assembly was anxious to stimulate the High Authority in its preparatory work and hoped it would speedily lead to undertakings being granted the necessary financial aid for their programmes. It also asked that a large proportion of the sums available should be reserved for social purposes, and that some light be shed upon the rehabilitation problem. Lastly, it confirmed its wish to be kept informed at the following Session — and, meanwhile, through the medium of the Investment Committee — of the High Authority's activities in the way of investments, specifying that it required not only overall production and expansion figures but detailed statistics for each type of commodity.

42. The attitude taken by the Assembly at its next Extraordinary Session seems to have been little affected by the publication of the second General Report of the High Authority. It in fact merely repeated its previous views — namely that estimates as to the pace of expansion should be more conservative and that priority should be given to the adoption of suitable financial measures to maintain the competitive position of coal and steel both within the Community and in respect of outside countries. The Report of the Investment Committee explained the reasons for this attitude. More especially, the Assembly regarded the increase of coking coal by approximately 15 million tons by 1956 as a ceiling figure. Similarly, it only considered a steel capacity of 50 million tons per annum to be a realistic proposition provided that the Governments took steps to develop the processing industries. This desire of the Assembly and its Committee to maintain à cautious outlook on the subject of estimates, however, did not deflect them from their chief aim — to persuade the High Authority to lay down general targets without further delay. Certain Representatives, on scrutinising the loan contract concluded with the United States Government, thought at first that the specific purpose for which this loan of 100 million dollars was to be used constituted precisely the High Authority's general targets [(73) cf. Loa n Contract between the United States and E. C. S. C, - Article 1. — Within the framework of the objectives of the loan, investment schemes to be limited to the following fields : (a) Modernisation and mechanisation of collieries, extension of production capacity of coal, and building of workers' dwellings ;(b) Modernisation and mechanisation of iron mines and extension of production capacity of iron ore, modernisation of iron ore processing plant- and building of workers' dwellings ;(c) Modernisation of cokeries and oxtension of production capacity of coke ;(d) Construction and modernisation of mining thermal works to enable low-grade coal to be used and cheap energy to bo supplied to the mines and networks (Official Gazette of the Community, of 7th May, 1954).]. In actual fact, although these purposes confirm the views of the Assembly as to the priorities to be observed, they cannot act as a substitute for the definition required of the High Authority under the terms of Article 46.

43. The Assembly duly expressed its satisfaction with this first loan to the Community as marking the beginnings of co-operation between the United States Government and the institutions of E.C.S.C, commenting that the loan "goes to show that a European supranational organisation helps in the transition from the assistance stage to that of normal economic and financial relations" [(74) Common Assembly, Extraordinary Session, 1954 — Resolution on the General Report of the High Authority, para. 45 (Official Gazette of 9th Juno, 1954).]. It was, nevertheless, disappointed to note that the steel industry would in no way benefit from this loan, and urged the High Authority to spend part of the funds raised from the levy on the speedy building of accomodation for steel-workers. The Assembly, however, was glad to note the High Authority's intention to discuss with the Investment Committee in the near future how the funds accruing from the American loan might best be allocated among the various undertakings. Pursuing its efforts to keep close watch over the Executive's financial administration and being unwilling to confine itself to supervising the administrative expenses alone, the Assembly requested the High Authority "to present it each year with the final accounts of the past financial year and budget estimates for the following year" [(75) May Session, 1954 — Resolution, para. 39 (Official Gazelle of 9th June, 1954).].

44. Lengthy debates in the various Committees and four Assembly Sessions led to no conclusion as to the definition of the action which the High Authority, and hence the Community, should properly pursue in the investment field. It would seem anomalous that the High Authority, while so frequently claiming to act on the most liberal principles, should, nevertheless, seek to assume tasks calling, in fact, for some measure of intervention. The High Authority has in effect, a a dual role :

44.1 Periodic fixing of general targets serving as a guide to undertakings as to future market prospects ;

44.2 Granting of financial aid to undertakings for the execution of projects falling within the general targets.

As has been seen, the first of these functions is specifically laid down in Article 46; the second emerges from the series of powers granted under Article 54. The Assembly was glad to note the High Authority's willingness to make use as soon as possible of the first of these powers laid down in para. 1 of Article 54, as exemplified in the conclusion of the American loan contract. But how will the High Authority actually allocate the funds ? Will it require undertakings to submit their programmes in advance (para. 3, Article 54)? Does it intend to issue an opinion on these programmes, accompanied by a "justification" (para. 4, Article 54)? If so, is such action consistent with its announcement to the appropriate Assembly Committee that it intends to leave certain fundamental responsibilities in the investment field to undertakings themselves, such as the kind of projects contemplated, their technical execution and the financing of them ? [(76) of. Common Assembly — 'Introductory Memorandum to the Report of the Committee on Investments, Financial Questions and Production Development' by M. de Menthon (January, 1954, p. 10).]. It is for the Assembly to solve these problems.

45. We would here recall certain reflections made by the Rapporteur of the Investment Committee, M. de Menthon, when he wrote in January, 1954 : - "In face of the prevailing uncertainty about the general investment policy the High Authority intends to pursue, certain members of your Committee fear it may be too liberal, while others, on the contrary, are uneasy lest it be too interventionist. The first school thinks that the High Authority, having been required under the terms of the Treaty to lay down general targets, notably for the expansion of production capacity, should then proceed to ensure that these targets are duly observed, by controlling investments as a whole. Since the High Authority has decided to help finance these investments, moreover, it is obviously obliged to make a choice ; even if it were only to give undertakings its financial guarantee, this intervention would still entail a judgment and hence a choice, based not only on financial but also on technical and economic considerations. Should this intervention be limited to investments derived from the High Authority itself, leaving such undertakings as have raised the necessary capital themselves complete freedom to invest it as they choose? Several members of your Committee did not consider such a distinction to be advisable, feeling that the High Authority could only play its proper role by controlling investments, as a whole, as it is entitled to do under para. 4, of Article 54. Other members of your Committee, on the other hand, feared too interventionist a policy and invoked the terms of Article 5 of the Treaty which stipulates 'that the Community shall accomplish its mission with limited direct intervention'. They, accordingly, considered that the investment policy adopted should be confined to improving market conditions, the financial aid of the High Aiithority being only of a supplétive or complementary nature while undertakings retained full initiative and responsibility for their programmes and investments [(77) Ibid.]."

46. Even though the 1954 Ordinary Session gave certain speakers a chance to point out the urgent need for making comparisons between these programmes so as to obtain, through the effective arbitration of the High Authority, a genuine co-ordination of the tasks imdertaken, and prevent overlapping, no Resolution to this effect was actually adopted, and the doubts raised by the Rapporteur of the Investments Committee in January, 1954 as to the interpretation of one important clause of the Treaty still remain. The methods of application adopted will for long determine the structure of the Community.

Transport

47. The effects of transport costs on the prices of raw materials and consumer goods are too important for the Assembly not to have devoted special attention to this point, culminating in the appointment of a special Committee. The Treaty, however, has only granted extremely limited powers to the High Authority in this field, leaving it largely to the Governments to apply progressively and over a fairly long period the harmonising principles which are bound up with the whole concept of the common market [(78) cf. Treaty , Article 70, and Convention relating to the Transitional Provisions, Section 10.]. Since it is difficult for the High Authority itself to show much initiative or speed in this respect, the Assembly was certainly unable to take any very concrete action, apart from repeatedly drawing attention to the need to speed up to the utmost the work preparatory to harmonising measures.

48. At any rate, the elimination of flagrant discrimination has rapidly come to fruition, as required by the Convention containing the Transitional Provisions. Such discrimination had taken the form of differential scales of charges for the same traffic, according to the origin and destination of the goods, which meant in effect, according to the nationality of the consignor or consignee. The Assembly was all the more ready to acknowledge this achievement in that the Committee's caution against the danger of eliminating such discrimination by levelling up charges to the maximum rate [(79) cf. Common Assembly. — Report presented by M. Pohrmann on behalf of the Transport Committee at the Ordinary Session of 1953, para. 14.] seems to have been duly heeded. The High Authority took the view that the carrying out of this preliminary series of measures had in itself entailed substantial economies for the industries of the Community.

49. However, this first phase in the rationalisation of transport charges is only, as it were, a "curtain-raiser", and subsequent measures will be of much greater significance. The first of these is the establishment of direct international scales of charges, thus doing away with the switch-over to a new rate of payment every time goods cross an internal frontier of the Community, which is tantamount to a customs duty and perpetuates artificial distortions in the competitive market. The third and final stage, described in the Convention under the general term "harmonisation", is an even more comprehensive and complex matter. It consists in the standardisation of costs connected with various goods, these having been subjected to widely divergent tariff treatment on historical or economic grounds peculiar to each State, so that distortions have been caused for which there is no longer any justification in the common market. Such harmonisation must also be applied to the effect of distance upon transport costs, which should be comparable in all the member coiuitries. Such action would not, however, suffice to establish an adequately cohesive transport system for the Community as a whole, notwithstanding the view of specialised organisations that the actual wording of the Treaty or the Convention entails no specific obligation to go further than this. The Committee recalled that measures in such fields as co-ordination between the various modes of transport are also inherent in harmonisation in the widest sense and help towards the efficient working of the common market.

50. Some Representatives went so far as to think that a more radical attempt should be made to provide producers and consumers with an efficient network of communications. In their view, the Community cannot remain indifferent to the improvement of these facilities by creating new transport channels or modernising those already in existence. The improvement of certain great West European waterways — the Moselle and the Meuse, for instance — was regarded by various speakers as an important aspect of this process.

51. At all events, the Assembly was definitely aware of the extent to which the efficiency of the common market depended on finding-effective answers to the transport problems involved. Admittedly, E.C.S.C. goods traffic forms only a fraction — though a considerable one — of European transport as a whole. Thus, it is to the European transport authorities that strong representations must be made to come forward with an overall plan, and here, too, a Community strictly limited to specific economic sectors can only serve as a provisional solution. The Committee and the Assembly were well aware of this when they emphasised the need for greater coordination and integration of transport [(80) cf. Commo n Assembly — Report by M. Kapteijn, Ordinary Session of May, 1954 — Document No. 14, para. 28.]. While supporting the work of the Consultative Assembly of the Council of Europe in this field, the Common Assembly might, without exceeding its terms of reference, bring all its influence to bear upon the Governments and national Parliaments to stimulate them to take an active interest in this vital question of European transport organisation.

Social problems

52. As the political organ of the Community, the Assembly must place greater emphasis upon human questions than do its technical organs. It has therefore paid particular attention to labour problems and the improvement of the lot of the worker. Doubtless, the social tasks specified in the Treaty are limited in scope and often seem to be overshadoved by economic questions; doubtless, too, the High Authority possesses but restricted powers in this field. But this is no reason why the Assembly should not insist that the fullest use be made of these powers, and the High Authority gives the impression that, though it is not called upon to place a wide interpretation upon this aspect of the Treaty, it is quite prepared to fall in line with the directives or advice of the Assembly in this matter. Perhaps such a policy may go somewhat beyond the exact wording of the Treaty, but it cannot but accord with the general principles that are laid down in the opening Articles of the Treaty, constituting the charter on which the whole policy of the Community must be based [(81) Article 2 of Treaty — 'The mission of the European Coal and Steel Community is to contribute... to the development of employment and the improvement of the standard of living in the participating countries.... The Community must.. . while safeguarding the continuity of employment...'. Article 3 (e) 'The institutions of the Community shall... promote the improvement of the living and working conditions of the labour force in each of the industries under its jurisdiction, so as to make possible the equalisation of such conditions in an upward direction : - M. Bertrand, speaking on behalf of the Social Committee, informed the Assembly on 15th June, 1953, that: 'the Committee considers that Articles 2 and 3 of the Treaty authorise the High Authority to pursue a social policy'.].

53. From its earliest meetings, the Social Committee developed this line of thought and showed concern that the means of the High Authority were somewhat inadequate, even for preparing accurate comparative studies upon the wage structures and social security systems of the member countries — a pre-requisite of all concrete action in the social field [(82) This point was raised again in the Resolution of the Ordinary Session of 1954 (para. 28) when the Assembly 'hoped that the work aiming to bring into line wage structures and social security standards be vigourously continued'. of. Report presented on behalf of the Social Committee by M. Birkelbach, Ordinary Session of 1954, paras 19—22.].

54. The conclusions of the Committee, endorsed by the Assembly at its first Ordinary Session, were by way of raising a number of vital human problems, though, indeed, the most complex of these seemed unlikely to be solved on a short term basis — as, for instance, the standardisation of social conditions within the Community [(83) In this connection, the Assembly, at its May Session 1954, requested the High Authority 'to collect information designed to facilitate the conclusion of model collective conventions by the competent organisations'. cf. speeche s by MM. Fohrmann (15th June, 1953) and Carcassonne (14th May, 1954) on this subject.]. Other points raised might be more easily met, as, for instance, the desire that the High Authority should undertake systematic research into the social impact of all economic or financial action, and that it should maintain close contacts with workers' groups. Finally, the Committee stressed the importance of providing vocational training and of mastering the problem of the free circulation of manpower, with all the delicate human repercussions involved, and insisted on the immediate preparation of a housing programme for workers.

55. With regard to the last point, the Assembly was not slow in showing its own determination to take positive action. Thus, the Social Committee appointed a sub-committee to investigate the social aspects of the investment policy to be pursued by the High Authority, with special reference to the building of workers' dwellings. Between 14th and 21st February, 1954, this Subcommittee assembled a wealth of interesting information in various industrial basins of the Community [(84) Lorraine, Luxembourg, the Saar, the Ruhr, Dutch Limburg, the Campine and Wallonia.]. The conclusions reached thereby formed the basis of the extremely important section on workers' housing which the Assembly embodied in the final Eesolution of its last Ordinary Session [(85) cf. Commo n Assembly — Ordinary Session, 1954. Resolution on the General Report of the High Authority, paras. 32—38 (Official Gazette of 9th June, 1954).]. This document contained a number of recommendations and clearly-defined wishes on the principles to be observed in planning, financing, building and allocating workers' houses, and made it quite clear that the Assembly regarded housing not as a "side issue" ancillary to the work of an undertaking, but as one of the means whereby the workers could lead a fuller and a more dignified life [(86) cf. Speeche s in the Assembly by MM. Wigny (16th June, 1953),, Sassen and Struye (14th May, 1954).]. The Assembly has had occasion to welcome the decision of the High Authority to allocate a million EEU units of account, drawn from the technical research fund [(87) Contribution to the building of 1,000 houses.], to the building of workers' houses, and was particularly glad to note that 25 million dollars of the American loan [(88) cf. Common Assembly, Ordinary Session, 1954. Speech by M. Fanfani (13th May, 1954).] had been earmarked for this purpose.

56. The progressive reconversion of tinder-takings, as a result of the rational re-grouping and modernisation of the productive resources of the Community, raises important problems with regard to the adaptation of the labour force to new conditions [(89) The High Authority has already adopted a decision to- participate in the re-employment in the Lorraine coalfields of miners become redundant owing to a decline in the output of the 'Charbonnages français du Centre- Midi'.]. The Treaty lays down that the High Authority may contribute to the cost of solving such problems, but grants it no powers of initiative in the matter. The Assembly found this disturbing and, while admitting the inescapeability of the legal position, invited the High Authority to co-operate with the Governments in evolving a procedure whereby re-adaptation measures might be speedily and effectively implemented [(90) cf. Résolution o f tho Ordinary Session, 1954.].

External relations

57. The Political Affairs and External Relations Committee of the Community stated unequivocally at the Ordinary Session of 1953 that the Community must form "a firm nucleus which, far from being limited to its own boundaries, must continue to remain open to all those of goodwill and all who wish to join in the future" [(91) cf. Repor t presented by Mlle Klompô on bohalf of tho Political Affairs and External Relations Committee — Ordinary Session, 1953 — para. 4.]. For this reason the Committee and the Assembly urged the High Authority to keep it informed of all attempts to establish close links with outside countries [(92) cf. Common Assembly. Resolution on the General Report of the High Authority on the activities of the Community during the year 1953—1954 (Official Gazette of 9th June, 1954). 'The Common Assembly expresses the hope that, bearing in mind the special position of Austria, tho High Authority will sparo no pains to ensure that relations with other European countries develop on concrete and constructive lines, by the conclusion of agreements clearing the way to real and close cooperation'.]. The Committee thought that the Assembly might give the High Authority useful support in its relations with the Governments of Member States and declared itself ready to consider most carefully any questions which the High Authority might wish to put before it. It also called upon the High Authority to devote more space to external relations in its future General Reports.

58. The Committee devoted its main attention, however, to the many exchanges of views which had taken place between the High Authority and official representatives of the Member States with a view to tracing the general policy to be followed in the event of negotiations with the United Kingdom Government, as laid down in Section 14 of the Convention containing the Transitional Provisions. The Committee took note of the decision of the Special Council of Ministers authorising the High Authority to get in touch with the British Government regarding negotiations on the whole range of economic and trade relations in the field of coal and steel. These contacts should enable real progress to be made with economic collaboration and should prepare for the establishment of liaison, perhaps on an institutional basis, between the United Kingdom and the Community, from which duties as well as rights would result. The Assembly was informed of the exchange of letters between the High Authority and the United Kingdom which began on 24th December, 1953. The British Government's reply to the High Authority on 29th April, 1954 is a first step towards association, but the Assembly hopes that the High Authority will spare no pains to secure more concrete results in the long run.

59. The Assembly also asked for information about the substance of the High Authority's conversations with a delegation from the Austrian Government and with experts from the Swiss Confederation. The reason for these conversations was that these two countries were concerned about the possible effects of introducing a direct international railway charges, in that the offer of more advantageous terms might deprive them of some of their transit traffic. The Committee took note of the High Authority's resolve to take no decision in the matter without consulting the Governments of the countries in question.

60. The negotiations on the opening of the common market for special steels seem likely to be more delicate. The scaling down of the customs duties of Member States to a consistent level calls for similar action on the part of outside countries if they are to avoid a policy of differential prices and dumping. The Assembly considered the cases of Sweden and Austria, but more particularly the latter, owing to its outstanding capacity for exporting special steels. It recognised the difficulties peculiar to the case of Austria, but considered, in general, that outside countries could not be accorded the same rights as Members of the Community so long as they did not observe the rules and obligations imposed on Member States by the Treaty [(93) cf. Report submitted by Mlle..Klompé (1954, para. 12).]. Another point worth noting is that, within its field of competence, the Community has been recognised by the Signatories of G.A.T.T. as an autonomous Contracting Party whose territory is indivisible for customs and trade purposes. Thus, were the Community to grant tariff reductions to any particular third-party, the most-favoured-nation clause could at once be invoked by all the signatories of G.A.T.T. and the same taiiff reductions would have to be applied to imports from the other States outside the Community. Generally speaking, the Assembly has recognised the need for a progressive reduction of import duties, on the ground that imports from outside countries stimulate competition within the Community. It was also been at pains to discover how the agreement between steel exporters is compatible with the intention of the Treaty to keep prices charged abroad within fair limits.

61. The signature of the 100 million dollar loan agreement by the United States Administration was the signal for the External Relations Committee to examine the full political significance of this achievement, the more so because it was confirmed by the High Authority that the initiative had sprung from the United States itself. The Committee wished to know to what extent this cooperative gesture oy the United States Administration laid commercial obligations upon the Community which might be incompatible with its independence of action. With particular reference to the import of American coal, the High Authority declared that it had made no undertaking to bring pressure to bear upon the individual Governments to reduce restrictions on the import of such coal. It recalled that, apart from the provisions of Article 4 of the Treaty, the question of import restrictions wras within the jurisdiction not of itself but of the Governments. This throws light upon the press communiqué issued by the Washington Administration, which stated that "in the course of the negotiations, the United States informed the High Authority of consultations at present in progress with certain member countries of the Community concerning the raising of import restrictions imposed by some of them on American coal". The External Relations Committee was also anxious to know whether the extent of the loan did not fall too far short of legitimate expectations. When the High Authority pointed out that this preliminary agreement should be regarded not as a culminating achievement but as a first stage towards future action, the Assem- $ bly and the Committee admitted that it might be better to limit the amount of the initial loan and leave the way open to the negotiation of further loans, rather than to commit oneself to a specific sum at a stage when investment policy had hardly taken shape.

4 III - Relations between the Community and the Council of Europe

62. The Assembly gave proof from the very outset of its inaugural Session in September, 1952, of the importance it attached to close links between the Community and the Council of Europe [(94) cf., i n particular, the statement by Mlle. Klompé at the Sitting of 13th September, 1952. The Assembly instructed the Organisation Committee, which it had just set up, to consider future links with the Council of Europe.]. Its constant concern since then has been to ensure that the most exhaustive use is made of the provisions of the Treaty governing relations between the two organisations [(95) cf., Articl e 94 of the Treaty and the 'Protocol concerning relations with the Council of Europe'.].

63. These relations are governed by a special Protocol, under the terms of which the High Authority is required to transmit each year to the Committee of Ministers and to the Consultative Assembly its General Report on the activities of the Community and to inform the Council of Europe of the action taken on such Recommendations as may have been sent to it by the Committee of Ministers. The Common Assembly, whose members, as the signatories of the Treaty have emphasised, should normally be chosen from among Representatives to the Consultative Assembly of the Council of Europe, is itself required to present to the Consultative Assembly an annual Report on its own activities. This enumeration of methods of cooperation is not in any way restricted, since, in view of the need for establishing the closest possible links between the two organisations, the same Protocol lays down that "agreements between the Community and the Council of Europe may, among other things, provide for any other type of mutual assistance and collaboration between the two organisations and the appropriate forms thereof ". Both in interpreting and in putting into effect the Treaty's provisions, the Common Assembly has done its best to ensure that every account is taken of the aims of the Council of Europe, as formulated in the "Eden Plan" and in the Recommendations and Opinions of the Consultative Assembly.

64. The "Eden Plan", it will be recalled, provided for a re-organisation of the Council of Europe enabling organic liaison to be instituted between the latter and the restricted Communities [(96) ' . . . the essence of Mr. Eden's proposals was that the Council of Europe should bo remodelled so that its organs could serve as the Ministerial and Parliamentary institutions of the Schuman Plan, the European Defence Community and any future organisations of the same structure. At the same time, the Council of Europe would continue to serve as a consultative body and as a forum for intergovernmental and parliamentary co-operation in Western Europe'. (Memorandum by Her Majesty's Government in the United Kingdom, April, 1952 : Vol. I of Documents (Working Papers), Fourth Ordinary Session of the Consultative Assembly of the Council of Europe). In a supplementary memorandum, the United Kingdom delegation made it clear that there was 'no question of merging the Schuman Plan and the E. D. C. with the Council of Europe. the aim is rather to provide at Strasbourg a general framework for European activities, the exact relationship and degree of co-ordination between these different activities to be determined on each occasion when use is made of the facilities provided.' (ibid.)]. In this spirit, and following a request from the Committee of Ministers for an Opinion, the Consultative Assembly had suggested, in particular, that — as far as possible, premises, staff and equipment of the Council of Europe should be used by the Common Assembly; and that — "b y agreement between the Assemblies of the E.C.S.C. and the Council of Europe, and on conditions to be jointly decided, the following measures should be taken :

64.1 Representatives to the Assembly of the Council of Europe of countries not participating in the E.C.S.C. shall be able, as observers, to take part in the proceedings of the Assembly of the E.C.S.C. and have the right to speak but not to vote ;

64.2 close co-ordination shall be secured in respect of the proceedings of the Assemblies with regard to matters of common interest;

tha t the Committee of Ministers should open discussions with the High Authority and the Council of Ministers of the E.C.S.C. for the purpose of :

64.1.1 deciding upon the conditions under which Member States of the Council of Europe not participating in the E.C.S.C. could be represented by observers on the Council of Ministers of the E.C.S.C, and also the mutual obligations thereby entailed ;

64.1.2 defining the conditions under which the High Authority might be authorised to take part in certain meetings of the Committee of Ministers and the Assembly of the Council of Europe, especially when consideration is being given to its Reports submitted to the Council of Europe [(97) cf. Opinion No. 3 in Texts Adopted by the Assembly Fourth Ordinary Session (Second Part) of the Consultative Assembly of the Council of Europe.]".

65. "With regard to the admission of observers to the Common Assembly, it was not found possible to accede to this request, the jurists consulted by the Bureaux of both Assemblies holding that in order to do so the Treaty instituting the E.C.S.C. would, first of all, have to be amended [(98) 'The following alternative is . . . unavoidable : either the 'observers' have the status of members of the Assembly and the Treaty should mention them as such ; or the 'observers', without being members of the Assembly, are permitted by their attendance and their right to speak at all proceedings, even those held in secret session, to influence such proceedings, contrary to established parliamentary practice — in which case the admission of observers cannot be assumed from the fact that no mention of them is made in the Treaty. Express provision should be made for their admission.' (Council of Europe : SG (52) 10 — Opinion on the participation of Observers from the Council of Europe in the Common Assembly and on the conclusion of an Agreement to this effect — — 10th December, 1952).]. It should, however, be borne in mind that the Ad Hoc Assembly, which was not bound by such strict rules, allowed members of the Consultative Assembly representing countries other than the six to take part in all its proceedings as observers [(99) the request made by the Council of Ministers to the members of the Common Assembly to set up an Ad Hoc Assembly expressly mentioned the admission of such observers (see statement of 11th September, 1952, by Chancellor Adenauer in the Official Report of the opening Session of the Common Assembly). See also statements of 13th September, 1952, to the Common Assembly by MM. Guy Mollet, and F. de Menthon. In Opinion No. 3, mentioned above, the Consultative Assembly stated that it welcomed 'the decision of the Ad Hoc Assembly to invite observers from non participating countries to join in the work of preparing plans for a European Policital Community.'].

66. Since the Common Assembly had no legal power to admit observers to its proceedings, it was decided to adopt other means of co-operation, namely a joint meeting once a year of Representatives to both Assemblies [(100) This procedure was adopted by the Bureaux of both Assemblies following negotiations opened by the President of the High Authority and Lord Layton, Vice-President of the Consultative Assembly (cf. Official Report of the Sitting of 10th January, 1953, of an Extraordinary Session of the Common Assembly).]. The purpose of these "joint meetings" is to enable members of the two Assemblies to exchange views on the General Report on the activities of the Community, and they therefore take place without an agenda and without voting. To make them more effective any opinion given at their conclusion by the Consultative Assembly is transmitted to the Common Assembly before the latter adopts the final Resolution on the General Report [(101) the following Resolution was adopted by the Common Assembly on 11th March, 1953, in the course of its Ordinary Session : 'The members of the Common Assembly and the members of the Consultative Assembly shall hold a joint meeting once a year to discuss the General Report submitted to the Common Assembly of the European Coal and Steel Community. It is understood that no voting shall take place at such joint meetings of the two Assemblies, which will meet separately to frame their conclusions.' the motion for a Resolution had been drafted jointly by the Bureaux of the two Assemblies. See also statements by M. Sassen and M. P. H. Teitgen at the Sitting of 11th March, 1953.]. Two Joint Meetings have so far been held, namely on 22nd June, 1953 and 20th May, 1954. Members of the High Authority also took part in them. The Common Assembly emphasised the value of this co-operation [(102) 'The Common Assembly . . . welcomes the success of the first joint meeting of the members of the two Assemblies and believes that this procedure . . . should be followed whenever the need for it arises . . . ' (Resolution of 15th January, 1954).], which, according to M. Monnet, President of the High Authority, "represents the fruition of proposals which Mr. Eden had made with a view to strengthening the unity of the Western world " [(103) Statement by the President of the High Authority at the first Joint Meeting (22nd June, 1953).].

67. Being desirous of improving this cooperation, the Consultative Assembly recommended, in the course of its Session of June, 1953, that the possibility of holding similar joint meetings of Committees of both Assemblies be studied [(104) ' . . . the Consultative Assembly suggests that the full benefit of future joint meetings of the two Assemblies would be assured, if a similar procedure could be evolved allowing for joint meetings between the Committee of the two Assemblies which are concerned with the same category of problems. The Consultative Assembly accordingly recommends that this question should be studied by the Bureaux of the two Assemblies and a joint decision reached as soon as possible.' (Consultative Assembly : Resolution 31, expressing the opinion of the Consultative Assembly on the Reports of the High Authority of the Coal and Steel Community relating to the activities of the Community and to the establishment of the common market for steel).]. A detailed examination of the suggestion by the two Bureaux showed that it was not possible to comply with it, owing to the different nature of the Committees of the Common Assembly and those of the Consultative Assembly. Whereas the former have to fulfil a specific task, namely control of the activities of a supranational authority, the latter have only a consultative role and the task of studying general European policy. Moreover, such procedure might "go beyond the provisions of the Treaty and upset institutional machinery within the Community", as well as " render it more difficult to make the necessary efforts to bring about association with countries which are not Members of the Community" [(105) Common Assembly : Report made on 5th January, 1954, by Mlle. Klompé, Rapporteur, on behalf of the Committee on Political Affairs and External Relations of the Community, on the Reply to be given by the Common Assembly to Resolution 31, adoptod by the Consultative Assembly of the Council of Europe on 13th June, 1953. See also : Common Assembly, Resolution vogarding the roply to bo given to Resolution 31 of tho Consultative Assombly of tho Council of Europe and rotating to tho procedure to bo followod for direct transmission of Consultative Assombly documents to tho Common Assembly (15th January, 1954).]. While emphasising that the position would he reconsidered when the problem of association had assumed new aspects, the Common Assembly pointed out that its Committees had been authorised to invite Representatives to the Consultative Assembly, and indeed all members of a committee of that Assembly, to their meetings.

68. In connection with relations between the Assemblies, a question of procedure has arisen, namely that of the exchange of documents between the two organisations. The Common Assembly has requested its Bureau to seek, in conjunction with that of the Consultative Assembly, a method of direct transmission of any text adopted by the latter at the conclusion of joint meetings. Such a text must be distinguished from Recommendations adopted by the Consultative Assembly, which are transmitted to the High Authority through the Committee of Ministers [(106) cf. Article 4 of the Protocol concerning relations with the Council of Europe.]. It is essential for the Common Assembly to be informed of them before adopting its Resolution on the General Report.

69. With regard to co-operation between the two Secretariats, the Common Assembly, after recalling the individual and autonomous character of each Assembly and stating its desire to facilitate mutual assistance of their departments, expressed in January, 1953, the wish that its Secretariat might, during its Sessions at Strasbourg, avail itself of the technical facilities at the disposal of the Secretariat-General of the Council of Europe and that the recruiting of temporary staff should be organised by common agreement [(107) cf. Common Assembly : Resolution concerning relations between the Secretariat-General of the Council of Europe and the Secretariat-General of the Common Assembly (10th January, 1953). See also Special Session of January, 1963, of the Common Assembly : Report by M. Nicolas Margue, Rapporteur, on behalf of the Organisations Committee concerning relations between the Secretariat-General of the Common Assembly and the Secretariat-General of the Council of Europe.]. This co-operation has, in fact, continued without interruption ever since.

70. The same fruitful developments as those in relations between the two Assemblies have taken place in co-operation between the Community and the Council of Europe. As long ago as the 11th September, 1952, [(108) cf. Inaugura l Session of 1952 of the Common Assembly Statement by M. Jean Monnet, President of the High Authority.] the President of the High Authority offered to arrange for that Authority to appear before the Committee of Ministers of the Council of Europe, as also the Consultative Assembly if the latter wished to have further explanations of the General Report. The Common Assembly has also welcomed the fact [(109) cf. Statement s by M. Montini and M. van der Goes van Naters to the Common Assembly on 13th January, 1953.] that, since 1953, the High Authority has taken part in the meetings of certain committees of the Consultative Assembly [(110) Namely, the Committee on Economic Questions and the Committee on Social Questions.]. The Special Council of Ministers has stated that it is prepared to consider in each particular case the desirability of organised exchanges of views with the Committee of Ministers, of the Council of Europe on matters of common interest [(111) cf. 1954 Ordinar y Session of the Common Assembly : Report made by Mlle M. A. Klompé, Rapporteur, on behalf of the Committee on Political Affairs and External Relations of the Community.]. Partial satisfaction has therefore been given in this respect to the Consultative Assembly, which had held that it was highly desirable to arrange for joint meetings of the two organisations [(112) cf. Resolutio n 31 of the Consultative Assembly.].

71. As was recently pointed out to the Common Assembly by one of its Representatives, "by rising above the letter of the Treaty, it has been possible to find truly successful means of cooperation, while safeguarding the autonomy of both Assemblies" [(113) Statement by M. Montini on 15th January, 1954, at the Extraordinary Session of the Common Assembly.]. By its determination to promote close relations between the Community and the Council of Europe and its desire to bring about harmonious co-operation with the Consultative Assembly, at the Parliamentary level, the Common Assembly has clone its best to ensure that practical effect is given to the Eden Plan.

5 CONCLUSION

72. Although the following considerations lie somewhat outside the orbit of relations between the Consultative Assembly and the Common Assembly, this Report cannot be concluded without emphasising some of the activities and preoccupations of the first supranational parliamentary institution. We should first of all recall the role played by the Common Assembly in the preparation of a scheme for the political integration of Europe. Article 38 of the Treaty of Paris of 27th May, 1952, provides that the Assembly of the European Defence Community shall be that of the European Coal and Steel Community, completed in the case of the Federal German Republic, France and Italy respectively by three Representatives elected under the same conditions and for the same period as the other Representatives. The Treaty requires the new institution to study within a period of six months the constitution of an assembly elected on a democratic basis. Overriding the legal scruples felt in some quarters, the members of the Common Assembly resolved on 13th September, 1952, to accept the invitation extended to it to set up an Ad Hoc Assembly to draft a treaty instituting a European Political Community by 10th March, 1953. The Assembly thereby gave proof of its determination to try bring about a united Europe. It held that the Coal and Steel Community could not be an end in itself, but that it should, in the words of M. Robert Schuman's historic declaration of 9th May, 1950, constitute the groundwork of a "wider and more substantial community".

73. The Common Assembly has never lost sight of the fact that it is the duty of the institutions of the Coal and Steel Community to ensure the proper internal working of the Community and to achieve the specific aims laid down in the Treaty within the framework of the common market. Nor has it ever forgotten that the founders of E.C.S.C. had always intended that this market should be extended to other States, either by establishing a single market or by co-ordinating separate markets. "Unification of Europe is so desirable that no legal formula should be rejected out of hand" [(114) cf. 1953 Ordinar y Session of the Common Assembly: Report made by Mlle Klompé on behalf of the Committee on Political Affairs and External Relations of the Community. In the Report it is stated, inter alia : 'the principle is too essential not to be re-affirmed, namely, that there is no such thing as Little or Greater Europe ; there is just Europe. In the sphere of practical achievements, the core is represented by the Community, which, far from being a closed society, is and must remain open to all who are of goodwill and who wish to accede to it.' - See also statements made to the Assembly on 16th June, 1953, by Mlle KIompe, M. Piinder and M. Wehner, and the statement made on the same day by M. Jean Monnet, President of the High Authority. In its Resolution of 19th May, 1954, the Assembly emphasised 'the open nature of the Community and the importance it attaches to establisliing the closest possible relations with the other countries of Europe.'].

74. In the same way the Assembly has never ceased to encourage the gradual achievement of more advanced economic integration of the six Powers, and if possible with other countries since such integration is the only means of ensuring the complete success of the European Coal and Steel Community [(115) In its Resolution of 23rd June, 1953, the Assembly laid special emphasis on this : ' . . . in order that the High Authority may help to co-ordinate economic, financial, monetary and credit policies with a view to the gradual achievement of economic integration.' - See also statements by M. Henle : 'Prom the very outset it was intended that the Schuman Plan should be a first step toward the achievement of something much wider in scope. To abandon this idea would be to forsake the very idea underlying the Schuman Plan and that is something which your Assembly cannot desire' (Sitting of 19th June, 1953). M. Vixseboxse : 'The question is to what extent the Community — and by that I mean not only the High Authority but, above all, the Common Assembly and the Council of Ministers — can make a substantial contribution to the integration of Europe. I was therefore most pleased to hear M. Preusker emphasise the need for the work of the Community to be constantly directed toward the creation of a unified Europe' (19th June, 1953). M. Wigny : 'The success of the Coal and Steel Community is contingent upon extending the common market' (20th June, 1953). M. de Smet : 'I am glad to find that wo are at last on the road to European unity, which I consider to be essential' (20th Juno, 1963). M. Sassen : 'Having regard to the oxporienco so far acquired in connection with the common market, efforts must bo made to co-ordinate the economic, financial, monetary and oredit policies, in suoh a way that the fullest possible oconomio integration may be achieved as soon as possible. ... I incline to the belief that the experience acquired by the Community during the initial months of its existence points to ... the need to help in seeking ways and means of wider economic integration' (23rd Juno, 1953). M. Billotte : 'The unification of Europe, winch all of us hero, as good Europeans, would like to see achieved, albeit, perhaps, by different ways and means.' (16th January, 1954).]. Having regard to technical realities, the Assembly has been obliged squarely to face the need to dispel the anomaly of integration of an economic sector which, tough fundamental, is strictly limited, and the continuance of the other sectors under Government control. So far as the Assembly is concerned, the future of the Community within the framework of economic affairs is laid down in advance : the Community must, first of all, become stronger and, as far as possible, broaden its scope, if it is not to run the risk of eventually seeing its efforts come to naught. It is for this reason that in the spheres in which its supranational executive powers were particularly limited, namely in regard to transport and labour problems, the Assembly brought all its influence to bear upon the High Authority to ensure wider application of the Treaty.

75. The Assembly has considered, however, that its fundamental task lay, essentially, not merely in efforts to extend the territorial and specific scope of the Community. Its real raison d'être has emerged with ever more clarity in the course of the Assembly's unanimous and wholehearted efforts to bring about better living conditions both for workers in "black-country" districts and for mankind as a whole within the Community of the six countries. It is in that undertaking that it would appear to have found its true vocation.