740.00119 Control (Germany)/7–2046: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received July 20—4:55 p.m.]
1767. 1. At 34[th] meeting Control Council July 20, General McNarney made announcement cabled him from War Dept authorizing him to join with representatives of any other occupying power or powers in measures for treatment of respective zones as an economic unit, pending quadripartite agreement which would permit application of Potsdam Decision for treatment of Germany as economic unit.
While stating he was not in position to express definite opinion today, British member mentioned that announcement followed very closely Secretary Byrnes’ statement regarding which Bevin had said he would seek the urgent consideration of his Government. He inquired whether it was intended that administrative functions should be limited, as in General McNarney’s announcement, or be those envisaged in paragraph 9 (4) of Potsdam Agreement.44 General McNarney replied that his announcement contemplated all administrative functions necessary for establishment of economic unit.
French member stated that announcement raised completely new matter on which he could give no opinion today.
Soviet chairman made no comment and Control Council postponed discussion to later meeting.
Soviet political adviser, subsequent to meeting, objected to inclusion Control Council in communiqué of reference to US proposal as one designed to establish German economic unity, stating this would be [Page 581] putting evaluation on proposal by Control Council which did not accord with Soviet point of view. He personally doubted that this is way to achieve economic unity.
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Sent Dept as 1767, repeated Moscow as 188.