740.00119 Control (Germany)/12–2845

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

13629. Advantage was taken of James Martin’s67 presence here en route to Berlin to discuss again yesterday deconcentration of German industry with same group mentioned in Embassy’s 13432 of December 22.

Owing to holidays there had been no opportunity for British officials to discuss matter with others in British Govt. They nevertheless indicated willingness to attempt to meet us along three different lines which they suggested. One was to utilize standards specified by Dept as basis for prima facie case (as suggested in Embassy’s 13432), second was possibility of working for 6 months under law without mandatory standards with agreement to consider at end of that period new law containing mandatory standards based on experience gained in interim period. We did not encourage this approach in belief that it would be preferable to work out agreed permanent law now. Third [Page 1576] was to agree promptly on specific list of firms which should be deconcentrated or deconcentrated68 in any event. Martin thought we could produce list of from 100 to 200 firms. Britain thought they could produce list of from 12 to 24 firms.

Britain suggested that if law were passed without mandatory provisions all German firms be required to submit within 14 days information upon basis of which control authorities could begin deconcentration of largest firms. They also recognized necessity of providing in law (as is apparently not done in either draft) not merely for deconcentration of industry but for preventing its subsequent reconcentration.69

Sent Dept as 13629; repeated to Berlin as 439.

  1. Head of the Decartelization Branch, Economic Division, OMGUS.
  2. Apparent garble.
  3. Telegram 147, Janupary 7, 1946, 3 p.m., to London, informed Ambassador Winant that future discussions with the British on the proposed law on deconcentration of German industry would be held in Washington. In the interim the matter was not to be referred to the Control Council. (740.00119 Control (Germany)/12–2845)