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

862.50/9–946

Memorandum of Conversation, by the Chief of the Division of German and Austrian Economic Affairs (Kindleberger)

[Washington,] September 9, 1946.

M. Bérard⁶⁴ called to explore what the Department envisaged as to possible steps to be taken by the French following the Secretary’s speech with respect to the economic unity of Germany. He stated that the reception to the Secretary’s speech in France had been extremely adverse and that he personally was sorry that no concession to French feelings on security of even a verbal character had been made. He thought that it would be impossible for the French government in view of this reaction to join British-American bizonal unity but wondered what steps, if any, short of joining as a full partner could be taken.

Mr. Kindleberger stated that he hoped that it would be possible to solve all outstanding questions on the economic unity of Germany at the meeting of the Council of Foreign Ministers devoted to the German question and that the sharp reaction in France to the Secretary’s speech would have given way by that time to a more receptive attitude. He hoped that the French public was not unaware of the importance to be attached to the Secretary’s remarks about our intention to stay with the German problem to its conclusion. Finally, he suggested that short of joining the British-American zones on the basis of a full partnership in our unity, the French government would give serious consideration to—

1. Relaxing barriers to interzonal movement of German persons and German goods.

2. Forming German economic authorities in the French zone who might establish liaison with the German agencies in the US–UK area.

3. Raising consumption standards, particularly in food, to the levels to be maintained in the UK–US area.

M. Bérard renewed his complaint about the unwillingness of the US authorities to consider French proposals for reshaping the French zone to permit the establishment of proper Land governments. He also expressed some sadness at the abrupt rejection given to recent French proposals on central agencies, which though they did not go all the way to accepting the OMGUS position, went sufficiently far in his judgment as to have earned them more of a hearing. In conclusion, he felt that it probably would be impossible for the French government to take any positive action designed to draw the French zone nearer to the British and American zones until such time as M. Bidault had talked out the problem with the Secretary, Mr. Bevin and, if possible, Mr. Molotov. He hoped this could be done at the Council of Foreign Ministers on Germany.

64. Armand Bérard, French Minister in Washington.