740.00119 Control (Germany)/4–446: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received 8:10 p.m.]
951. …
. . . . . . . . . . . . . .
Coordinating Committee also considered78 proposal create interim Allied import-export bureau to coordinate import-export programs of all occupation zones and “proceed immediately to prepare and organize a central German Administrative Department for zonal trade, headed by a state secretary”. French member expressed strong favor for creation of such bureau to “encourage interzonal trade, limit import, encourage exports and thus create economic unity of Germany, a most important Control Council objective”. Stating French Government did not want immediate creation of a German control Administrative agency he indicated he would accept the paper provided all references to creation of such department be deleted. He also said Control Council powers were considering general problem of German central agencies. General Clay said he felt French amendment would prevent proposed bureau doing anything not already done by Allied Control agencies and he, therefore, proposed that the paper be dropped from the agenda. Coordinating Committee agreed this proposal.
Thus French sabotage of the Potsdam decision re the establishment of a German central administration for foreign trade and other [Page 537] similar agencies continues deadlock which does much to nullify US efforts to implement the public declarations so solemnly made by the three powers on August 2. One of the primary effects of this stalemate will certainly be, in the absence of a substantial volume of exports paid for in dollars, an augmentation of US occupation costs. We shall thus succeed in financing reparations—a proposition which as I remember it—we vigorously opposed [last summer].
Sent to Department as 951, repeated to Paris as 93.
- Reference is to the 48th meeting of the Coordinating Committee, April 2.↩