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American Monn<strong>et</strong>ism and the European Coal-Steel Community in the Fifties 29<br />
army had brought on, he warned "(...) a crisis of almost terrifying proportions." 25<br />
Even Monn<strong>et</strong> was, at least for the moment, nonplussed. Although confiding to<br />
Bruce on 31 August that he would resign from the High Authority in consequence<br />
of the EDC rejection, he changed his mind two days later because the scheme was<br />
not "<strong>de</strong>ad but only woun<strong>de</strong>d" and could be "bandaged up for the next campaign." 26<br />
The rejection of the EDC treaty had astonishingly few consequences. Within<br />
two months Britain, France, and the United States had agreed to adopt the NATO<br />
alternative to German rearmament. 27 Y<strong>et</strong> never again could European integration<br />
be equated with Monn<strong>et</strong>'s version of supranationalism. In November Monn<strong>et</strong> resigned<br />
without prior warning as Presi<strong>de</strong>nt of the High Authority, then rescin<strong>de</strong>d the offer<br />
and finally had to be forced out of office in June 1955. The official explanation<br />
given for his abrupt <strong>de</strong>cision to step down was disappointment at the failure of the<br />
EDC. He may also have been influenced by the less spectacular, and only slightly<br />
less ambiguous, failure of the Coal and Steel Community.<br />
The American Loan<br />
The CSC ten<strong>de</strong>d to be overlooked in the drama that unfol<strong>de</strong>d around the EDC. This<br />
result may not have been uninten<strong>de</strong>d. In Luxembourg things were a mess. At the<br />
root of the problem was Monn<strong>et</strong>'s refusal to ce<strong>de</strong> any authority to, or share influence<br />
with, others. In r<strong>et</strong>aliation the producers therefore quite simply sabotaged his<br />
work. The much touted openings of the common mark<strong>et</strong>s for coal and steel in<br />
Spring 1953 had negligible effect. Everywhere output of the combustible continued<br />
to be regulated by quasi-official national cartels. Faced with the prospect of comp<strong>et</strong>ition,<br />
the steel industry tightened informal alliances and even openly formed a new<br />
International Steel Cartel to regulate exports. Although the High Authority issued<br />
flurry of regulations governing price, mark<strong>et</strong>ing, investment, and so on, their only<br />
real function was to conceal its impotence in masses of verbiage. 28<br />
The only really important issue in the relationship b<strong>et</strong>ween Washington and the<br />
CSC was money: How much would be given in aid and for which purposes? A<br />
<strong>de</strong>cision to provi<strong>de</strong> it, based simply on the notion that "some <strong>de</strong>gree of financial<br />
power will be essential to the Schuman Plan", 29 antedated the actual existence of<br />
the organization, som<strong>et</strong>hing that caused at least one official, Miriam Camp, to warn<br />
on 18 July 1952 that "No case has y<strong>et</strong> been ma<strong>de</strong> out, either by the MSA (Mutual<br />
Security Administration) or by the Schuman Plan countries, as to why dollar assis-<br />
25. T. HOOPES, p. 246.<br />
26. K.E. BRUCE Diaries, 2 September 1954.<br />
27. J. GILLINGHAM, "David K.E.Bruce," pp. 8-49.<br />
28. J. GILLINGHAM, Coal, Steel, and the Rebirth of Europe, pp. 332-348.<br />
29. a. FRUS 1952-1954/VI "Memorandum of the Acting Director of the European Regional Staff,<br />
Mutual Security Agency (Hulley) to the Assistant Director for Europe, Mutual Security Director<br />
(Cleveland)", 21 July 1952; ibid "The Assistant Director for Supply of the Mutual Security Agency<br />
(Fitz Gerald) to the Office of United States Special Representative in Europe," 2 August 1952.