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Anglo-American Relations and the EC Enlargement, 1969-1974 Name - 1 - Title: Anglo-American relations and the EC enlargement, 1969-1974 Name: Justin Adam Brummer Institution: UCL Degree: PhD History - 2 - I, Justin Adam Brummer confirm that the work presented in this thesis is my own. Where information has been derived from other sources, I confirm that this has been indicated in the thesis. - 3 - Abstract This thesis examines the ramifications of Britain’s negotiations to join the European Community (EC) on Anglo-American relations, 1969-1974. It adds to the historical debate by showing that strong Anglo-American political, economic, and defence relations continued under Heath and Nixon. The prevailing view in this area is that the British Prime Minister Heath sought to re-orientate foreign policy away from the ‘special’ Anglo-American relationship towards the EC. Moreover, it is believed that the Nixon presidency developed a sceptical view of an enlarged, competitive EC. Thus, the Heath-Nixon period is viewed as a low point in the post-1945 alliance because of the EC enlargement. However, while gaining entry into the EC was the top priority for the UK government, Heath and Whitehall sought to preserve close Anglo-American cooperation. Moreover, Nixon considered Western European integration and Anglo-American relations to be important components of the Atlantic Alliance and his Cold War strategy. Tensions did grow: over the substance of China and Middle Eastern policy, the unilateral dismantling of the Bretton Woods system, and the ‘Year of Europe’. But these episodes also showed the strength of the Anglo-American partnership. In the economic sphere the EC enlargement negotiations planted the UK into the middle of US-EC trade conflict over unfair trading practices. Furthermore, the UK’s entry into the EC altered the status of sterling, resulting in a delicate change to Anglo-American economic relations. Yet close cooperation continued in trade and monetary affairs, independent from the enlarged EC. In the field of defence policy, Anglo-American ‘special’ relations actually strengthened under Heath and Nixon with the Polaris missile system upgrade and the continuation of sharing military facilities and intelligence. The 1970s witnessed a subtle policy-making process and adjustment in diplomatic relations, less coherent and straightforward than previously presented. Using recently released government documents, this thesis contributes to developing our understanding of 1970s Anglo-American relations and European integration. - 4 - Contents Acknowledgements 6 Abbreviations 7 Introduction 9 Chapter 1 Policy Making Structures and Elite 25 Chapter 2 US and UK Foreign Policy Priorities (1969-1970) 61 Chapter 3 Anglo-American Political Relations and the EC Enlargement (1969-1974) 95 Chapter 4 Anglo-American Economic Relations: Part I – Trade and the EC Enlargement (1969-1974) 122 Chapter 5 Anglo-American Economic Relations: Part II – Monetary Affairs and the EC Enlargement (1969-1974) 158 Chapter 6 Anglo-American Defence Relations and the EC Enlargement (1969-1974) 195 Conclusion 223 Bibliography 232 Appendix 1: Persons 254 Tables Table 1: Party Divisions in the US Congress, 1969-1975 29 Table 2: British General Election Statistics, 18 June 1970 35 Table 3: UK National Daily Newspaper Circulations, June 1971 56 Table 4: Gross Domestic Product in Selected Countries and Groups, 1961-1970 83 Table 5: British Exports and Imports: Selected Areas 1951-1969 84 Table 6: British Exports and Imports: the Commonwealth 1951-1969 147 Table 7: Dependence on Sugar Cane by the Principal Commonwealth Producers 148 Table 8: US Budget and Balance of Payments 175 - 5 - Dedication Alex and Tricia Brummer - 6 - Acknowledgements Many thanks are due to my supervisor Kathleen Burk for reading this thesis chapter to chapter, offering important comments and encouragement, and for providing a generous amount of time. Thanks to Adam Smith, Sarah Snyder, Piers Ludlow, and John Dumbrell for also reading this thesis. I wish to acknowledge the financial support of the Richard Chattaway Scholarship, the Royal Historical Society, the University of London, the UCL History Department Hale Bellot Fund, and the Sir Richard Stapley Educational Trust. Thanks must also go to the staff of the archives and libraries where I conducted research: The National Archives in Kew, London; the National Archives in College Park, Maryland; the London School of Economic; UCL; and the Senate House Library. My deepest thanks go to Seth Shulman for his vital support in Washington, D.C. I would also like to thank Holly Shulman and Jon Stagg for their significant help while conducting research in the US. I would like to thank my colleagues and friends: Katharina Rietzler, Ivan Polancec, Maike Thier, Daniel Laqua, Ruvani de Silva, Barbara Gaspar, Kathleen Walker-Meikle, Reider Payne, Susannah Cunningham, Anna Lermon, Erik van Dongen, Julian Hosie, Ananyo Bhattacharya, Benjamin Wolfe, Beata Malinowska, Samuel Raven, Faye Caldwell, Zac Gold, Dan Abramson, Richard Freed, Shiri & Richard Seymour, Natalie Barnes, Victoria & Daniel Cronquist, Ilan & Carmen Goldstein, Polly Shulman, Rebecca & Nathaniel Herz, and Leonard & Lesley Magrill. Thank you to my family: my siblings Jessica, Gabriel, and Dan; my grandparents Jacqueline, Michael, and Saul; and my uncle Daniel. Finally, I would like to especially thank my parents Alex and Tricia, who made this possible. - 7 - Abbreviations ABM Anti Ballistic Missile Defences ACP Asian, Caribbean, and Pacific States CAB Cabinet Office CAP Common Agricultural Policy CDL Chancellor of the Duchy of Lancaster CEA Council of Economic Advisers CIA Central Intelligence Agency CPRS Central Policy Review Staff CSA Commonwealth Sugar Agreement CSCE Conference on Security and Cooperation in Europe DEFE Ministry of Defence File DOD Department of Defense (US) DOP Defence and Overseas Policy Committee DTI Department of Trade and Industry (UK) EC/EEC European Community / European Economic Community EFTA European Free Trade Association EMU Economic and Monetary Union FBI Federal Bureau of Investigations FCO Foreign and Commonwealth Office FRG Federal Republic of Germany FRUS Foreign Relations of the United States GATT General Agreement on Tariffs and Trade GDR German Democratic Republic HAK Henry Kissinger IRQ Important Question Resolution LDC Less Developed Country MOD Ministry of Defence (UK) MIRV Multiple Independently-targeted Re-Entry Vehicle MBFR Mutual Balanced Force Reduction NATO North Atlantic Treaty Organisation NAUK National Archives, Kew, London, UK (formerly PRO) NARA I National Archives Building, Washington D.C., USA NARA II National Archives at College Park, Maryland, USA NPL Richard Nixon Presidential Library and Museum, Yorba Linda, California NPM Nixon Presidential Materials NSA National Security Adviser NSC National Security Council NSDM National Security Decision Memorandum NSSM National Security Study Memorandum NTB Non-Tariff Barrier ND No Date OMB Office of Budget and Management PPS Principal Private Secretary PRC People’s Republic of China PREM Prime Minister’s Office PRO Public Records Office, Kew, London, UK RG Record Group RN Richard Nixon SALT Strategic Arms Limitation Talks SDR Special Drawing Rights - 8 - SRG Senior Review Group Telecon Telephone Conversation UK United Kingdom US United States USSR Union of Soviet Socialist Republics USDA United States Department of Agriculture WHCF White House Central Files WHSF White House Special Files WHT White House Tapes - 9 - Introduction Prime Minister Edward Heath, hoping to increase the importance of Western European cooperation in British foreign policy, opened up membership negotiations with the European Community (EC) in July 1970, but this potentially challenged Britain’s post-war relations with the US and the Commonwealth. While the US supported an integrated Western Europe with British participation since 1947 and the Marshall Plan, Britain decided not join in the early European integration projects of the 1950s, as a greater priority was placed on maintaining a global strategy. However, the 1960s saw a gradual shift in British foreign policy towards European integration with two unsuccessful applications to join the European Economic Community (EEC).1 A third opportunity arose in December 1969 following the EC conference at The Hague, where the member countries declared their support for the enlargement and strengthening of the integration project. This led to Heath reviving the second application, taking Britain into the EC on 1 January 1973. While the UK focussed on joining the EC, the US President Richard Nixon, entering office in January 1969, sought to improve relations with the Soviet Union, normalise relations with China, and end the Vietnam War, therefore devoting less time to the Anglo-American alliance and the EC. This raises an immediate question: what impact did the EC enlargement negotiations and UK membership of the EC have on Anglo- American relations during the Heath-Nixon period? It is this problem which is the starting point of this study. This thesis adds to the historical debate on Anglo-American relations and European integration in two central ways. Firstly, it shows the continuing importance of the Anglo- American political, economic, and defence alliance under Heath and Nixon, independently from the EC context. Britain’s application to join the EC, and subsequent membership, created new dimensions to the Anglo-American relationship, which adjusted through a more subtle way than previous presented. Although an alteration took place,
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