862.50/3–846: Telegram

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


667. Our attitude toward French reservation on level of German dyestuff production as detailed in urtel 729 and 73059 and by Clay to War Dept. in CC 1112 of March 8,60 is firm opposition. Dept urges that you make no concessions to French on pharmaceuticals and dye-stuffs. War Dept sending similar message. We do not regard this issue as a disarmament issue in any respect.

Dept believes that French desire to use this action to replace Germany in export markets. U.S. policy as stated in Para. 7 of Dec 12, statement61 is opposed to such action.

French participated with Germans in pre-war dyestuffs cartel. U.S. is anxious to break the German cartel but does not wish in doing so to foster a French-controlled world cartel. We are not yet satisfied with the abrogation of French-German dye-industry arrangement made during the occupation.

You are authorized to communicate the substance of U.S. views as stated in this cable to French representatives in Berlin if necessary.62

Sent to Berlin as 667 repeat to Paris as 1185 and Brussels as 229 for Angell as 180.

  1. Both telegrams dated March 8, pp. 520 and 523, respectively.
  2. Not printed.
  3. Statement by the Department of State on the Reparation Settlement and the Peacetime Economy of Germany; for text, see Department of State Bulletin, December 16, 1945, p. 960.
  4. Telegram 884, March 26, 11 p.m., from Berlin, reported final acceptance by the French of the figures previously accepted provisionally, i.e., productive capacity of 332 million reichsmarks for pharmaceuticals, 36,000 tons for dyestuffs, and 11.4 percent of 1938 capacity for machine tools (862.50/3–2646).