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50 Elena Calandri son of her financial weakness, to a subordinate position. This, together with national specialization and technical backwardness would destroy Italian heavy industry. Moreover, the industrialization of French North Africa would create competition for Italian products in the Mediterranean. The Ministry strongly urged that if the government did decide, for political reasons, to support the French plan it should defend national economic interests by requesting that American financial contributions be admitted and that bilateral economic links with the United States be allowed as well. Existing production capabilities should be fully exploited before creating new capacity while Southern Italy and the Italian islands should be considered for industrial development "before or at least at the same time" as French North Africa. 41 Italian industrialists, meeting on 13 November in Milan to discuss the case of the threatened Franco-German cartel, urged the Government to insert Italy into the Franco-German system and decided to seek understandings with French and German industrialists. 42 The Foreign Ministry added to the economic worries. It considered that exclusion from a Paris-Bonn axis would be as dangerous as getting involved in a French autonomist manoeuvre which would annoy the United States. Hence, it sought a broad discussion of Franco-Italian relations with Mendès France, which was scheduled for January 1955. 43 Instructions sent to Quaroni on 3 December recommended a balanced approach which, in an attempt to protect Italy's European image by proposing that the project's integration features be reinforced, would cautiously establish a three-power dialogue while firmly thrusting to the fore Italy's economic demands and requests for political equality. 44 With peculiar realism and a sceptical view of French politics, Quaroni implemented the instructions. 45 The Franco-German economic rapprochement antagonized London as well. Since late 1953, the British government had been looking with benevolence on the purposefulness deployed by French governments in confronting the country's economic problems. It had applauded the launching of the Second Modernization and Equipment Plan, congratulated Edgar Faure's initial achievements and praised Mendès France's economic realism. 41. ASMAE, serie Ambasciata di Parigi (hereafter Parigi), 1955, b.55 fasc. Patto di Bruxelles – UEO – Agenzia Armamenti, Ministero dell'Industria e del Commercio – Servizio Coordinamento Commesse e Affari Patto Atlantico to Ministero degli Affari Esteri, 19 November 1954, no. 23170/30/9. 42. ASMAE, Parigi, 1955, b.55, fasc. Patto di Bruxelles..., Nota, All.B. 43. ASMAE, Parigi, 1955, b.55 fasc. Patto di Bruxelles..., P. Quaroni to G. Martino, December 10, 1954; P. GUILLEN, "Les questions européennes dans les rapports franco-italiens de la rencontre de Santa Margherita (février 1951) au voyage de Pierre Mendès France à Rome (janvier 1955)" in J.B. DUROSELLE, E. SERRA, Italia e Francia 1946-1954, Milano, Franco Angeli, 1988, pp.31- 49; A. DULPHY, P. MILZA, "Pierre Mendès France et l'Italie", in F. BEDARIDA, J.P. RIOUX, Pierre Mendès France et le mendésisme, Paris 1985; B. BAGNATO, "Il viaggio di Pierre Mendès France in Italia (gennaio 1955), Storia delle Relazioni Internazionali, 1992/1-2. 44. ASMAE, AP, Italia, G. Martino to Italian Embassy, Paris, December 3, 1954. 45. See e.g. ASMAE, Parigi, 1955, b.55, fasc. Patto di Bruxelles, P. Quaroni to G. Martino, December 10, 1954. See also E. SERRA, "Pietro Quaroni e la Francia", in J.B. DUROSELLE, E. SERRA, Italia e Francia, pp.278-297:292.
The Western European Union Armaments Pool 51 However, Britain was keen to retain her economic leadership in Europe, to secure implementation of the liberalization programme under the aegis of the OECD and the GATT and prevent the continental countries shying away from the so-called "Collective Approach to Freer Trade and Currencies", engineered in late 1952 to protect Britain's world role at the centre of the sterling area. 46 France was considered a major obstacle on the way towards economic liberalization in Europe. London had been closely watching the turn taken by French economic policy since the beginning of 1954 and in the autumn praise for efforts in the direction of financial rigour had gradually been giving way to some degree of excitement not far short of alarm. 47 Although the agreement on French agricultural supplies to Germany, agreed upon at la Celle-Saint-Cloud, had been intended to come into force after the liberalization of 80% of both countries' external commerce, the authorities in London suspected that protectionist and bilateral tendencies in France and Germany underlay a thin veneer of free trade rhetoric. Although the agreement secured a market for French agricultural products in Germany only, the Treasury was convinced that Germany would want "one for one" as it was put and expected that France would increase her imports of German engineering goods, especially cars and tractors, thus reducing Britain's share of the French market. In early December Britain expressed her worries to the French. The somewhat rough response she received as well as derogatory comments by Mendès France about minor European countries' role on the Continent painted a bleak future. 48 In Germany, after the universal uproar about France's almost avowed discriminatory aims at the London Conference, positions became more differentiated. The top political authorities showed varying degrees of hostility to the plan. Seen through French eyes, the contest was between advocates of the dogmatic and unthinking free market liberalism of the Economics Minister Ludwig Erhard, and other groups which were ready at least to listen to French schemes. The free marketers would not allow armaments production its own peculiarities, resisted the rebirth of a national armaments industry and relied on continuing American supplies. The groups who were prepared to listen, among whom the French listed Adenauer, the Auswärtiges Amt and, to a certain extent, the so-called Amt Blank, the future Defence Ministry, were either considering political motives for an entente with France or acknowledged that armaments, as industrial goods, were indeed peculiar while seeing defence needs as unrelated to economic priorities. 49 On the other hand, at non-governmental level, the prospect of Franco-German cooperation in armaments production called forth different reactions in the various 46. Some useful indications in B.W. MUIRHEAD, "Britain, Canada, and the Collective Approach to Freer Trade and Payments, 1952-57", Journal of Imperial and Commonwealth History, vol.20 1992/1, 108-126; see also, Scott NEWTON, "Britain, the Sterling Area and European Integration 1945-50, Journal of Imperial and Commonwealth History, vol.13 1984-85/3, 162-178. 47. PRO: FO 317/198447. 48. See PRO: FO 371/109448, CF 11318/10, E.W. Meiklereid (Paris) 6 December 1954; in late December Mendès France roughly declared that if the Benelux did not want to take part, the Armaments Pool could well become a Franco-Italo-German enterprise.
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50<br />
Elena Calandri<br />
son of her financial weakness, to a subordinate position. This, tog<strong>et</strong>her with<br />
national specialization and technical backwardness would <strong>de</strong>stroy Italian heavy<br />
industry. Moreover, the industrialization of French North Africa would create comp<strong>et</strong>ition<br />
for Italian products in the Mediterranean. The Ministry strongly urged that<br />
if the government did <strong>de</strong>ci<strong>de</strong>, for political reasons, to support the French plan it<br />
should <strong>de</strong>fend national economic interests by requesting that American financial<br />
contributions be admitted and that bilateral economic links with the United States<br />
be allowed as well. Existing production capabilities should be fully exploited<br />
before creating new capacity while Southern Italy and the Italian islands should be<br />
consi<strong>de</strong>red for industrial <strong>de</strong>velopment "before or at least at the same time" as<br />
French North Africa. 41 Italian industrialists, me<strong>et</strong>ing on 13 November in Milan to<br />
discuss the case of the threatened Franco-German cartel, urged the Government to<br />
insert Italy into the Franco-German system and <strong>de</strong>ci<strong>de</strong>d to seek un<strong>de</strong>rstandings<br />
with French and German industrialists. 42<br />
The Foreign Ministry ad<strong>de</strong>d to the economic worries. It consi<strong>de</strong>red that exclusion<br />
from a Paris-Bonn axis would be as dangerous as g<strong>et</strong>ting involved in a French<br />
autonomist manoeuvre which would annoy the United States. Hence, it sought a<br />
broad discussion of Franco-Italian relations with Mendès France, which was scheduled<br />
for January 1955. 43<br />
Instructions sent to Quaroni on 3 December recommen<strong>de</strong>d a balanced approach<br />
which, in an attempt to protect Italy's European image by proposing that the project's<br />
integration features be reinforced, would cautiously establish a three-power<br />
dialogue while firmly thrusting to the fore Italy's economic <strong>de</strong>mands and requests<br />
for political equality. 44 With peculiar realism and a sceptical view of French politics,<br />
Quaroni implemented the instructions. 45<br />
The Franco-German economic rapprochement antagonized London as well.<br />
Since late 1953, the British government had been looking with benevolence on the<br />
purposefulness <strong>de</strong>ployed by French governments in confronting the country's economic<br />
problems. It had applau<strong>de</strong>d the launching of the Second Mo<strong>de</strong>rnization and<br />
Equipment Plan, congratulated Edgar Faure's initial achievements and praised<br />
Mendès France's economic realism.<br />
41. ASMAE, serie Ambasciata di Parigi (hereafter Parigi), 1955, b.55 fasc. Patto di Bruxelles – UEO –<br />
Agenzia Armamenti, Ministero <strong>de</strong>ll'Industria e <strong>de</strong>l Commercio – Servizio Coordinamento Commesse<br />
e Affari Patto Atlantico to Ministero <strong>de</strong>gli Affari Esteri, 19 November 1954, no. 23170/30/9.<br />
42. ASMAE, Parigi, 1955, b.55, fasc. Patto di Bruxelles..., Nota, All.B.<br />
43. ASMAE, Parigi, 1955, b.55 fasc. Patto di Bruxelles..., P. Quaroni to G. Martino, December 10,<br />
1954; P. GUILLEN, "Les questions <strong>européennes</strong> dans les rapports franco-italiens <strong>de</strong> la rencontre<br />
<strong>de</strong> Santa Margherita (février 1951) au voyage <strong>de</strong> Pierre Mendès France à Rome (janvier 1955)" in<br />
J.B. DUROSELLE, E. SERRA, Italia e Francia 1946-1954, Milano, Franco Angeli, 1988, pp.31-<br />
49; A. DULPHY, P. MILZA, "Pierre Mendès France <strong>et</strong> l'Italie", in F. BEDARIDA, J.P. RIOUX,<br />
Pierre Mendès France <strong>et</strong> le mendésisme, Paris 1985; B. BAGNATO, "Il viaggio di Pierre Mendès<br />
France in Italia (gennaio 1955), Storia <strong>de</strong>lle Relazioni Internazionali, 1992/1-2.<br />
44. ASMAE, AP, Italia, G. Martino to Italian Embassy, Paris, December 3, 1954.<br />
45. See e.g. ASMAE, Parigi, 1955, b.55, fasc. Patto di Bruxelles, P. Quaroni to G. Martino, December<br />
10, 1954. See also E. SERRA, "Pi<strong>et</strong>ro Quaroni e la Francia", in J.B. DUROSELLE, E. SERRA,<br />
Italia e Francia, pp.278-297:292.