The United States Political Adviser for Germany (Murphy) to the Secretary of State

335. Our Missions at Praha and Stockholm are raising the urgent issue of limited trade transactions with Germany. The question of trade relations with Austria and Switzerland has also arisen. Undoubtedly questions concerning trade and barter will continue to arise during the period in which the Control Council is considering the creation of a quadripartite Export-Import Control agency. Small transactions of this nature have undoubtedly been consummated in the past by local Army commanders without reference to this or other headquarters. Such transactions have largely been in the nature of barter deals but have allowed vitally needed goods to move across frontiers.

United States Group Control Council is presently drafting plans for a quadripartite Export-Import Control agency as well as the [Page 1524] formation of a German foreign trade administration. In this connection United States Group Control Council desires immediate consideration of relations with Austria and various European neutrals. General Draper’s76 office may raise this question with the Joint Chiefs of Staff.

I would appreciate an early expression of the Department’s views concerning trade policy during the present interim period especially in relation to Sweden and Switzerland.

Repeated to London for Clayton as 51. Sent to Dept as 335.


[On August 22, 23, and 24 discussions were held in Washington between various American officials and French President Charles de Gaulle and Foreign Minister Georges Bidault. The talks covered many topics including the German coal situation; for texts of memoranda on these conversations, see volume IV, pages 707 ff.]

  1. Brig. Gen. William H. Draper, Chief of the Economic Division, United States Group, Control Council.