840.6362/1–2445: Telegram

The Acting Secretary of State to the Ambassador in the United Kingdom (Winant)23

564. For Hawkins. Discussions among Department, Potter,24 Batt25 and FEA26 resulted in the following suggestions in connection with the proposed European Coal Organization.

Functions

1.
It is believed that there will be a large net deficiency of coal on Continent for at least two years after the end of hostilities. Such deficiency will result from reduced production due to destruction and obsolescence of equipment, lack of labor, lack of maintenance supplies and will be aggravated by continental transport difficulties. Estimated deficiencies cannot be met by imports due to tight world coal position and lack of ships and port facilities.
2.
It is believed that an organization is needed (a) to contribute to the most efficient distribution of indigenous continental production, both from the point of view of end use and effective utilization of internal transport, thereby reducing residual import demands; (b) to contribute to most efficient distribution of mining equipment and maintenance supplies and materials to assure highest productive result; (c) to assist in securing cooperation of member nations in producing greatest amount of coal in the necessary grades.
3.
The above paragraph (2) should be considered as also applying to coal production and distribution from occupied enemy territories. In this connection relations to Reparations Commission27 will have to be worked out.
4.
The Organization should preferably be a subcommittee of the European Economic Committee. If the full members desire to give the Organization powers of decision as to allocation of their own coal and priorities for equipment, we would not be opposed if limited to the emergency period but we should not make this suggestion nor can we be bound by their decisions as to priorities.

Membership

1.
We believe membership should be at the technical operating level and consist of men familiar with the transportation, utilization and production of coal.
2.
Producing nations among Western European Allies should be full members; with the U.S., U.K., and U.S.S.E. as observers, taking part in discussions but not in recommendations or decisions made by the organization. In addition SHAEF28 and possibly AFHQ29 should be represented by observers.
3.
We would be opposed to full British membership since joining in actions of the Organization and making commitment would, we believe, seriously prejudice the effective operation of the Combined Coal Committee both in London and here. Should the British insist on full membership we would not follow suit and would insist that any action taken by British as members would not bind the Combined Coal Committee.

Relationships with SHAEF—The Organization should, at least in the early stages, keep in close touch with the Solid Fuels Section of SHAEF in order to be fully acquainted with SHAEF’s handling of existing problems and to educate itself for its activities in the postmilitary period.

Relationship to Neutrals—Coal requirements of Neutrals, particularly in relationship to Neutrals’ ability to produce and supply needed equipment and supplies, will have to be considered by the Organization. Then should be discussed the means of ascertaining the needs and capacities of the Neutrals in this respect.

Grew
  1. Repeated to Paris as telegram 284; to Moscow as telegram 148.
  2. Charles J. Potter, Deputy Solid Fuels Administrator for War.
  3. William L. Batt, Vice Chairman, International Supply, War Production Board.
  4. Foreign Economic Administration.
  5. For documentation on the economic control of Germany, see vol. iii, pp. 1169 ff.
  6. Supreme Headquarters, Allied Expeditionary Force.
  7. Allied Force Headquarters, Caserta, Italy.