Foreign Relations of the United States, 1946, The British Commonwealth, Western and Central Europe, Volume V

740.00119 Control (Germany)/8–1146: Telegram

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

confidential

Berlin, August 11, 1946—2 p.m.
[Received 6:43 p.m.]

1896. Reference Department’s telegram No. 1675 of August 7, 1946.⁵¹ Meeting was held August 9, between General Robertson, General Erskine,⁵² Sir William Strang, Sir Percy Mills and others representing British, and General Clay, General Adcock,⁵³ General Draper and myself and others representing US, to discuss further plan for bizonal economic unification.

Meeting found large area of agreement including following principles:

1. Common standard of living, including common ration to be established;

2. In utilizing to common advantage of both zones resources available in both zones, (a) all indigenous resources essential to agreed standard of living will be shared on basis of need, except for commodities subject to quadripartite agreement for allocation, and (b) surplus resources or agreed percentages of other resources will be available for interzonal trade or export;

3. Common import policy will be followed, limited to agreed items and quantities necessary to supplement indigenous resources to provide agreed common living standard;

4. Common export policy will be followed, limited to agreed items and quantities;

5. Exports payable in pounds sterling to extent that sterling is required for imports, and otherwise in dollars except for offset exchanges mutually agreed with countries other than US and UK.

Robertson personally agreed, but reserved for his Government’s decision, two other principles, namely, (1) each government responsible for imports into its zone to attain agreed common living standard after indigenous resources and imports procured from exports proceeds have been equitably distributed in both zones; (2) proceeds from past exports will be placed in common account and utilized in payment of agreed imports. Any excess in past or future proceeds from exports will be divided between governments in direct proportion to respective imports costs at time of division and will be prior charge over any other occupation costs.

Meeting agreed further that three Germans from US zone selected by Laenderrat would meet with Germans from British zone to formulate plan for each of proposed German agencies. Small British-American liaison staff would maintain contact with Berlin. Both British and ourselves indicated satisfaction with present German organizations in respective zones, but it was agreed that orders would be given by Berlin directly to bizonal agencies without interference by other agencies such as Laenderrat. Responsibility for planning and policy making is to be placed squarely on Germans. Six-man German advisory committees referred to above will meet at sites selected by Draper and Mills.

British-American liaison staffs will be joint, rather than integrated. Chairmanship will rotate at 2-month intervals.

There will be no unanimity rule for Germans. Recommendations and approval shall be accomplished within 3 weeks except for food and agriculture, where 2 weeks was agreed.

German agencies concerned are Food and Agriculture, Industry, Trade, including Import-Export agency, Finance, Transportation, Communications.

Permanent secretariat is to be established in ACA building, Berlin.

Foregoing is for Department’s confidential information only.

Repeated to Paris for Matthews as 231.

Murphy

51. Not printed; it requested information relating to developments concerning discussions on possible economic merger of the United States and British zones in Germany (740.00119 Control (Germany)/8–246).
52. Maj. Gen. George Erskine, Deputy to the Deputy Military Governor, British Zone of Occupation in Germany (Robertson).
53. Maj. Gen. Clarence L. Adcock, Assistant Deputy Military Governor, U.S. Zone of Occupation in Germany.