74.0.00119 Control (Germany)/4–1046: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
priority
[Received April 18—10 a.m.]
987. …
. . . . . . . . . . . . . .
To terminate long meeting81 General Clay delivered approximately following statement of position.
I am informed Economic Directorate is discussing paper on common import-export policy, and that views have been expressed there by Soviet member that this is zonal problem, and that it cannot be made effective until Germany has favorable trade balances, or until reparations program is completed. Admitting responsibility of each zone with respect to financing deficits, after all German resources either for export or interior consumption have been used, US delegation must point out that Potsdam protocol called for common import-export policy, and that Level of Industry Plan was based on balanced import-export program. Without such program, the reparation plan has no validity. Delivery of reparations is still in early stage; thus there is time to consider this problem. However, I say now that should we fail to agree on common import-export plan, US delegation shall at suitable time in near future invoke clause requiring balanced import-export program and insist on revision of reparation plan.
Sent Department as 987; London as 158; repeated to Moscow as 91.
- Reference is to the 49th meeting of the Coordinating Committee, April 8.↩