740.00119 Council/5–2446: Telegram

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

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5421. Permanent Under Secretary Sargent has commented to us as follows on Paris meeting of FonMins and European situation in general:

(1)
A measure of progress toward peace was made by the FonMins. The adjournment was well timed. After some weeks of stocktaking, the prospects are good for further progress when the FonMins reconvene in June. The experience in Paris and the outlook for the immediate future justify maintaining further the present machinery, meetings of the FonMins preceded by preparatory work by their deputies, with a general peace conference as the objective. It was well, though, while showing every disposition to maintain this machinery to remind the Soviets as Mr. Byrnes did, that there is an alternative course, an appeal to the United Nations Assembly.
(2)
The problem of Austria, he felt, was more pressing than the problem of Italy or even of Germany. The future of the Balkans, the whole Danubian area, and, to a large extent, of Germany, depends on what is done with Austria. Consideration of a peace treaty with Austria when the FonMins meet in June should be insisted on and a draft treaty should be in readiness then. Schmid, the Austrian representative in London, claims that the Soviets have such a draft treaty already prepared.
(3)
The future of Germany will of course be vitally affected by what is finally decided about the Ruhr. There is however nothing to be done at present about that question and in any event it is best to let it rest until after the June French elections. The Labor Party source quoted by the Herald Tribune correspondent Smith, in his article of May 21 on Germany, went “a bit too fast”. To divide Germany into two distinct spheres would be a “very serious decision”. (Smith quoted a Labor Party source as saying that the British were prepared to seek a show-down with Russia and that this would mean recognition of eastern and western spheres of interest, with the occupying powers pursuing independent courses.)
(4)
Repeated reminders to the puppet govts in Poland and Rumania of unfulfilled pledges and protests against the trend in Eastern Europe, and the Balkans in general, should be continued even though these actions do not result in improvement. These actions serve the purpose of reminding the people throughout these areas that they have not been forgotten and that developments in their countries are being watched.
(5)
The economic trend is more favorable in such smaller countries as Belgium and Holland than in France. These small countries were quicker to get off the mark. Some improvement economically is however beginning to be registered in France. Political appraisement must await the results of the June elections. He hoped very much that the trend toward economic stability would be accelerated and that a real trend toward political stability would also set in, for without a stable France it was very difficult to build a stable Europe.

Harriman