Confidential

NOTE TO THE EUROPEAN MEMBERS OF THE TRILATERAL COMMISSION Concerns: European Executive Committee meeting in Brussels, April 4-5,1974.

The meeting took place against a background of growing concern over the international atmosphere, less than promising for a cooperative enterprise like ours, while Europe itself showed few signs of being able to form the third line of a Western-Japanese triangle. As a practical matter, this unpropitious setting had led to difficulties in finding the necessary financial support for the Commission's work in two major Community countries.

During the opening dinner on April 4th, however, in which Mr. Gerry Smith, the American Chairman, Mr.Mister Zbigniew Brzezinski, the Director, and Mr. Robert Bowie, participated, the members of the Executive Committee rejected a too pessimistic assessment of our situation, or, if they accepted it, thought that it made the work of the Trilateral Commission more necessary than ever. The French member present, Mr. Berthoin, informed the meeting that the French group would avoid blocking the work of the Commission by a policy of the "empty chair", and that the atmosphere in France, at present rather unfavourable towards organised trilateral relations, might be less so after the elections. Moreover, as Mr. Colonna pointed out, the Commission was not so much an action group as a persuasion group and did not necessarily have to seek its membership among personalities close to the government.

2.

June meeting of the Executive Committee

During the meeting and luncheon on April 5th, we were the guests of Baron Lambert.

The first point on the agenda was the June 23-25 meeting of the whole Executive Committee. Initial doubts about the possibility of going ahead with this meeting owing to the precarious financial situation were overcome by financial commitments from most of the national groups represented. It was decided in order to involve the European membership more fully in the discussion, and to provide the opportunity to meet Executive Commission members from the US and Japan, to invite the European members to join in part of the June meeting of the Executive Committee. The main task of the June Executive Committee meeting will be to formulate a political statement, on the basis of three technical reports — on trade, less developed countries, and the energy crisis — which will be submitted to it. In order to give the European members an opportunity to participate in the formulation of this document, they will be invited to participate after the first day of discussion on Monday (starting with a joint dinner with the Executive Committee on Monday evening, June 24th), continuing the joint meeting on Tuesday morning, including a joint luncheon. The Executive Committee would then formulate the final document on Tuesday afternoon, with a press conference to be scheduled for Wednesday morning.

Budget

The next item on the agenda was the joint study budget ⁽ˣ⁾ of the Trilateral Commission, which in the first year of operations has 3.been supported solely from US foundations. The continuation of such support is conditional on Europe (and Japan) contributing 1/6 of the budget during the second year (74/75) and 1/3 during the third year. The staff director, Mr.Mister Brzezinski, informed the meeting that efforts were being made to trim this budget to something over half of presently projected expenditure, so that Europe's contribution to this item would be $ 40.000 during the second, and $ 65-70.000 during the third year. While there was optimism that such support could be found from European Foundations, a difficulty arises because the by-laws of these foundations stipulate that grants must be made to scientific institutes only, not to an association like ours. It was therefore agreed to negotiate with one or several institutes to act as agents for a part of the trilateral research effort.

There was a debate on the nature and purposes of the research effort of the Commission. The British participants felt that it would be more difficult to attract support for academic work than for meetings of the members themselves. Several members indicated the desirability to make past and present taskforce reports an ongoing effort, since monetary, trade,development, and energy questions would continue to be at the centre of attention of the trilateral world. The staff director agreed, and pointed out that a more comprehensive, long-term look at the changing world economic order due to be initiated in the autumn would in fact integrate the earlier sectoral studies.

As to the administrative costs of the Trilateral Commission, the European Chairman, will present a revised budget shortly. 4.Accordingly to present estimates, the European costs will amount to ± 3.000.000 Belgian francs (± 200.000 Deutsche Marks) for each of the next two years (July 1st, 74-75, 75-76)

Task-force progress reports

There were progress reports on three ongoing task-forces. Mr. Colonna reported on the trade task force which had met in Washington in December, and in London in March, and whose North America rapporteur, Mr. Trezise was preparing a final draft to be sent to members well before the June meeting. While that report will chiefly deal with approaches to the present GATT round, the European side prepared an introductory chapter of international economic relations after the political and financial upsets following the oil crisis.

Mr. Udink, European rapporteur of a priority study designed to explore areas where the Trilateral Commission could usefully study development problems, reported a preliminary consensus to focus on the fate of the poorest LDCs, i.e. those that are not raw material producers. One immediate issue under discussion are ways to finance the balance of payments deficit following the oil price rises. A more cautious American approach suggested the need to demonstrate that the burden of these deficits should be borne by the oil producers. The European side saw the need for speedy action, since otherwise famine, already likely in certain areas this summer, might attain catastrophic proportions.

5.

Mr. Hager, European Secretary of the Trilateral Commission, reported on progress in the work of the energy task force, standing in for Mr. Guy de Carmoy, the European rapporteur. So far, the three rappporteurs have profited from a private research and discussion effort on this subject organised by the European Community Institute, the Japan Economic Research Center, and the Brookings Institution. A four day meeting between four experts from each region was held in Brussels March 25-28, where a joint report of some 70 pages was produced. ⁽ˣ⁾The three members of the trilateral task force who participated in these meetings will jointly produce a shorter document stressing the political issues raised by the energy crisis, in time for discussion at the June meeting.

The meeting strongly supported the idea that the staff director, in collaboration with the three chairmen, should work out a short paper of synthesis on the basis of the three technical reports, for discussion at the June meeting.

Chairmanship

The European Chairman informed the meeting that in view of his appointment as President of the European University Institute in Florence, practical and political considerations made a continuation as chairman after the June meeting of the Executive Committee impossible.

6.

The meeting suggested a number of possible successors, some of whom had been approached and declined because of other commitments.Mr. Jean Rey, who participated at the luncheon on April 5th, was asked if he would be willing to serve, but had to decline because of the work-load associated with his new responsibilities as President of the European Movement. In order to underline that he saw no contradiction between the goal of European unity and the goals of the Trilateral Commission he agreed to become a member. One solution held out was the appointement of an Executive Vice-Chairman who should carry out much of the organisational work of the Commission, and a distinguished European as Chairman in a more formal role. The members present promised to consult with their national groups and with the Chairman in order to come as soon as possible to the necessary decisions.