The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received October 23—11:38 a.m.]
833. Personal for Clayton.92 In our 788 of Oct 16, replying Dept’s 640 of Oct 10, 1 p.m.,93 we outlined the situation regarding coal exports from Germany. On my return to Berlin I would like to add one thought for your consideration. On the American side we have been pushing for compliance with the presidential directive with all the authority we could muster. That authority, however, is limited by virtue of the fact that the physical control of the bulk of German coal as well as industrial equipment is in the hands of others. Some of us here wonder whether it is fully comprehended by the Dept that when the decisions were made at Yalta and by the Govts, determining the zones of occupation,94 that power to implement American wishes in respect of coal production and export as well as removal of industrial equipment on reparations account passed from direct American control. With the Silesian coal beds going to the Soviet Union and Poland, the Ruhr deposits to the UK, and the Saar deposits to France, the Americans were left locally without a single blue chip. We have in our American Zone, as you know, less than 2 per cent of German coal. Also the amount of industrial equipment is not large in comparison with other zones. Yet much of the American approach to this subject, both on the governmental level and in the press would lead to the impression that the determination of these questions rests exclusively in the power of the American representatives. As you know, General Eisenhower and General Clay can and do present our views as forcibly as may be desirable but the physical control of these properties rests with somebody else.
. . . . . . .