The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received August 20—6:10 p.m.]
330. For Collado from Despres.73 Regarding question raised in your letter of August 7,74 I am informed that British are unwilling [Page 1523] to become dependent on Clay for supplies from US required in British zone. If programming and billing of imports is to be handled zonally, British position is that they will undertake procurement and initial financing of all imports needed for their zone.
General view here is that initial negotiations in Control Council are proceeding most satisfactorily, and that prospect is favorable for quadripartite agreement on many aspects of control of Germany. However, I believe that question whether Germany will actually be treated as an economic unit will be resolved only gradually, and that final outcome will be rather mixed. Although there will be no tight frontier between Eastern and Western Germany, economic inter connections during occupation probably will be considerably less pervasive than can be established among Western Zones. For example, it is unlikely that quadripartite arrangements for programming and financing of imports for all of Germany can be quickly negotiated. It now seems unwise to avoid combined arrangements among Western Zones. Lack of coal and industrial raw material in U.S. Zone makes it impracticable for US to maintain indefinitely our position that strictly zonal approach is only admissible alternative to quadripartite program.
Sent to London as 48, repeated to Department for Thorp75 as 330. [Despres.]