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

487. The Economic Directorate last week approved a compromise interim export-import plan, the essentials of which are as follows:

Pending the formulation of the export-import plan which is to be approved by the Control Council in accordance with paragraph 2 (reference should be to paragraph 1 of a paper of 6 September83 referring to paragraphs 14, 15, and 19 of the Berlin Declaration which was used as a basis for discussion at the Directorate meeting), the proceeds from exports should be credited to a special account of the Control Council and shall be used for payment of imports of each respective zone.

Payment for imports into one zone for the account of exports from another may be made only by decision of the Control Council, or as may be agreed between any zone commanders.

In the preparation of an export-import plan, the exports and imports of each zone made before the time of completion thereof will be taken into consideration.

The export-import plan shall be submitted for consideration before 31 October 1945. If the plan is not approved by that date then interim arrangements shall be reviewed.

Provisional prices of exports of goods, raw materials and merchandise shall be fixed by the commander of each zone pending conditions [Page 1528] of final settlement. Payment should be made at the rate of not less than 80 percent of provisional prices.

Provisional prices to be fixed by the zone commanders should be applied in the first place to all deliveries from 1 August 1945 and should be submitted forthwith to the Coordinating Committee. End of plan.84

Opinion here is that it will be difficult to treat Germany as an economic unit and to conduct foreign trade on a quadripartite basis under the above plan. Unless the Dept advises to the contrary, it would appear advisable for US, Britain, and the French, if possible, to establish provisional agencies to facilitate inter-zonal and foreign trade pending the formulation of a final export-import plan on a quadripartite basis. This is desirable because of the urgency [urgent] necessity of getting exports started. It should be made clear to the Russians that the inter-zonal agencies for Western Germany are for the interim period only and will be discontinued once an agreed trade mechanism has been established. It is believed that the provisional agencies for the Western Zones can be set up within the framework of the interim quadripartite plan outlined above.

Would appreciate an early expression of the Depts views with reference to the last paragraph of my 335 of 21 August, as well as views concerning interim trade with Austria. Fred Winant85 plans to leave for Salzburg and Vienna September 16 to discuss export-import trade with Austria.

  1. Not printed.
  2. For approval of the plan by the Control Council, see telegram 569, September 20, 10 p.m., from Berlin, p. 836.
  3. Director of the Trade and Commerce Division, United States Group, Control Council.