740.00119 Control (Germany)/8–2946: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received August 29—4:10 p.m.]
2038. See mytels 2007, August 24, and 2009, August 23.58 Soviet delegate and 73rd meeting Coordinating Committee August 28 rejected French proposal for Allied agencies, stating he found no need for addition to present quadripartite control organizations. He said suggested Allied agencies could not replace, but indeed would delay, creation of central administrative agencies envisaged by Potsdam agreement. Soviet delegation now as always favored central administrative agencies as an intermediary step toward central German Government. Soviet member considered that French proposal in any case could not be decided by ACC since it envisaged incorporation of Saar into French economic and finance system which was question that could only be decided on government level.
Expressing regret at rejection of his proposal, French member recapitulated his Government’s position adding little new except to say that since Allies have no coordinated policy re Germany, German central bodies would determine policy and escape Allied control in same manner French beguiled Germans during occupation France. He also reverted to alleged similarity between French proposal and OMGUS report of last May on central agencies. US member said he could not admit that US was unable to give orders to Germans and see that they are carried out.
British member stated failure to agree on central agencies had proved principal Obstacle to progress and he solemnly warned that whole quadripartite structure may crash if gap preventing agreement were not bridged.
Coordinating Committee decided to transmit report to ACC pointing out US, UK and USSR agreed existing Allied machinery is adequate, that these three delegates consider central German agencies are needed now to permit effective operation German economy as unit and [Page 596] that Soviet delegation has indicated that French proposed exclusion of Saar from economic unification should be dealt with on governmental level.
Sent Dept as 2038; repeated London as 301; repeated Moscow as 240, Paris for Matthews as 254.
- Neither printed; these telegrams reported on the 72nd Coordinating Committee meeting, August 22; there was no discussion of the French proposal save for a statement by the Soviet representative that he was awaiting instructions (740.00119 Control (Germany)/8–2446, 8–2346).↩