Dear Averell,
I enclose herewith, for your information, a copy of a letter I sent to Paul Hoffman. I had a word with Katz¹ on this question. I fully appreciate that ECA cannot accept responsibility for the success or failure of the Chicago Trade Fair, but feel that, nevertheless, we should do everything possible to make it a success.

I enclose herewith copy of certain suggestions I made following my recent visit to Paris. I expect that Van Zeeland, Gruber² and I will meet to discuss this before the next meeting of the Consultative Group.

I feel it is vital that the OEEC should make some definite forward move in the near future if it is not to lose confidence in Europe. It is very likely that it will be under fire at the Assembly of the Council of Europe for its lack of progress; this criticism may even result in a desire to take over the OEEC or some of its functions. This would, I think, be a pity, as the Organisation itself can serve a most useful function if it is given sufficient scope for action. So far we have concentrated on making progress in the direction of liberalisation and payments schemes, which are both contentious problems and because of failure to reach agreement, have been unable to make very much progress. While in no way suggesting that we should not continue our efforts in these spheres, I feel we should, at the same time, seek to make progress in less contentious matters, such as those outlined in the enclosed memorandum. Perhaps you could let me have the benefit of your views on these matters before our next meeting in Paris.

I find that there is again a good deal of uneasiness growing among the smaller countries as to the possibility of some political-economic discussions between Washington and some of the bigger European powers; they feel that the OEEC should be the effective instrument through which all major questions of economic policy should be settled. There was a considerable loss of confidence following upon the ABC talks and devaluation last Autumn. Psychologically I think it is important to bring in the OEEC directly in all matters of major policy; failure to do this tends to make the European Governments feel that they should each primarily concern themselves with their own immediate interests to the exclusion of the concept of co-operation.