840.50/12–244

The First Secretary of the British Embassy (White) to the Director of the Office of Wartime Economic Affairs (Taft)

Ref. 3498/2/44

My Dear Taft: In Opie’s temporary absence, I am sending you herewith a further memorandum in connection with the proposals for the formation of a European Economic Committee.

A similar communication is being addressed to the Soviet Government, but is not, for the present, being made to other Allied Governments.

We should be grateful for an early indication of the views of the United States Government upon the proposal contained in the attached memorandum.

Yours sincerely,

E. Wyndham White
[Enclosure]

Memorandum

In connection with the proposal to form a European Economic Committee, the suggestion has been made that the Committee should be set up to deal with urgent problems, such as coal. His Majesty’s Government are strongly of the opinion that some single European authority in respect of coal and programmed mining machinery is essential for the reasons given below.

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The need for the coordination of coal supplies to Europe.

The recent acceleration in the progress of the European war has underlined the urgency of the problem of coordinating coal supplies for Europe in the period immediately preceding and following the end of the German war. It is already clear that, owing to manpower and transport difficulties, supplies for this purpose from German sources will at first fall far short of requirements even if enemy resistence were to be overcome without extensive damage to Allied and enemy coal fields; and that early in this transitional period, Europe will have to depend to an appreciable extent on German coal. Later when and if export of surpluses becomes available in Allied coal producing countries, it is considered that, so long as the total requirements in Europe exceed total supplies, the only means of ensuring a fair and equitable distribution of total exportable supplies would be to coordinate allocation of such supplies, together with Germany’s surplus, according to the needs of importing countries. This principle of co operation has already been accepted by the United Nations—for example in respect of supplies in general for relief and rehabilitation.

The rehabilitation of mines.

Supplies of mining machinery and equipment will be required for mines to reach their maximum production. In the first instance, the provision for “first aid” rehabilitation to coal mines within the Anglo-American theatres of operations is the responsibility of the Supreme Allied Commander; but it is contemplated that in the case of liberated Allied territories, the appropriate National Civil Authorities will assume almost at once the responsibility for production in coal fields and that a thorough survey of mines by Allied Civil engineers, no doubt in collaboration with United Kingdom and United States engineers and as necessary with SHAEF, will need to be undertaken as early as possible. This survey, and the preliminary survey which is now in progress, will give rise to requirements of mining machinery and equipment which will need expert coordination so as to ensure an equitable and efficient distribution both of indigenous and non-indigenous supplies. It may well be, for instance, that the German mines should not have first choice of machinery and equipment produced by German industry. As an important factor in this distribution would be the extent to which output of coal could be increased by provision of mining machinery and equipment made available for allocation on lines proposed in the preceding paragraph.

Transport.

As the possibility of moving supplies both by land and sea will be entirely dependent upon the availability of transport, it will be necessary to coordinate demands for transport of coal from one European [Page 633] country to another so that these demands can be effectively presented to the authorities responsible for coordinating transport to meet the requirements, i.e. the United Maritime Authority and European Inland Transport Organization.

Handling of German coal.

The allocation of German coal outside of Germany will need careful and expert handling if a truly equitable distribution if [is] to be ensured and if legitimate trading interests of the Allies are to be adequately safeguarded.

His Majesty’s Government therefore suggest that there should be set up a European Coal Organization (E.C.O.) which would generally supervise Continental programmes of coal and planned items of mining machinery and ensure a fair and equitable allocation of available supplies. It would be composed in the first instance of members of the United Kingdom, the United States of America and the Union of Soviet Socialist Republics and European Allies. There would, of course be provision for a link-up with Allied Control Commissions, the Combined Boards, the United Nations Relief and Rehabilitation Administration, the European Inland Transport Organization, the United Maritime Authority, with representatives of employers and employees in industry, and with consuming interests including the interests of neutrals.

Interim period.

Pending the constitution of the European Coal Organization as a fully effective body, it is proposed that some form of interim European Coal Organization be set up as soon as possible on the lines of the Interim Commission on European Inland Transport. So long as operational conditions continue, the Interim European Coal Organization would, of course, be subject to military necessities as determined by the Allied Commanders-in-Chief.