862.5018/12–1646: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
secret
Berlin, December 16, 1946—11
p.m.
[Received December 16—7:47 p.m.]
[Received December 16—7:47 p.m.]
2913. For Mayer, Baden-Baden. Reurtel 80, December 914 about French intimation of US pressure for economic unification French zone by withholding food supplies Frenchz zone and French sector Berlin. Following are facts as requested.
- 1.
- With object economizing transportation, standing US-French arrangement here provided for US to meet French food commitments Berlin with simultaneous delivery equivalent amounts by French to US zone.
- 2.
- Under arrangements advances were made French, some for use French zone, some Berlin, but French replacements lagged. June 11 French account amounted 9,700 tons wheat most for Berlin account. Discussions ensued with decision French would settle from coming harvest. October came with no settlement, meanwhile additional 33,000 tons had been advanced French of which 24,000 tons repaid. (Virtually all repayments were ship diversions of grain purchased by France from US for French account.) When asked for repayment 9,700 tons out of harvest, French conveniently pleaded misunderstanding but promised look into situation. Came up with proposal at great sacrifice to deliver 10,000 tons rye from France and seemed crestfallen [Page 652] when reminded that like loaves and fishes, same rye had been promised British in settlement French-British account as well as to Berlin for French account in event Americans ceased meeting French commitments.
- 3.
- Americans have repeatedly talked with French, Berlin, with little result other than French apologetic explanation that French, Berlin, cannot act on own authority but refers to higher headquarters Baden-Baden and Paris. In fairness, Berlin French have urged headquarters by letter seen here that settlement be made at expense French zone or France and have pointed out “nonfulfillment commitments to US will have future most regrettable repercussions on regular supplies to French zone”.
- 4.
- November 22 Americans wrote particularly strong letter asking for positive statement when repayment could be expected. Result another conference on food and agriculture branch level with French, Berlin, agreeing to ask Baden-Baden officials come Berlin for settlement whole question but with French also indicating possibility of seeing Gen. Draper on economic division level re “amicable understanding” meaning further extension.
- 5.
- Draper has felt some time that situation has been allowed to go far too long and has reproved US food and agriculture officials therefor. At meeting with him French reiterated difficulties, suggested delivering part of debt if US would continue supplying French Berlin requirements for few more months and finally hinted they might be forced withdraw from Berlin, whereupon Draper very effectively countered “that would not be at all necessary, what you should do is to join economic unification program”. Conclusion of meeting Draper gave French previously prepared letter December 7 addressed Deboysson, Economic Division French MG, outlining facts in case and US position, stating further advances cannot continue, insisting upon immediate repayment and concluding after referring to French Berlin inability to act, “I ask you to look into this embarrassing situation and request Layaillon (when coming from Baden-Baden to Berlin) to take definitive action for prompt settlement”.
- 6.
- Presently US furnishing only coffee on French Berlin commitments, have stopped delivery flour, dried milk and potatoes formerly delivered. December 10 French account arrears to US (tons) 19,137 wheat, 510 dry skim milk, 133 natural coffee, 898 ersatz coffee. Likelihood coffee may stop shortly because wine received exchange under separate agreement not export quality and not selling well to army. Addition French owe British 11,076 tons wheat and some fats and meat according our latest information October 25.
- 7.
- French now trying bring in rye from France for French Berlin commitments but even if completed arrangements will take time. [Page 653] Meanwhile French sector will continue receiving supplies as do other sectors from Berlin magistrate to whom all food brought Berlin is turned over for distribution. Situation will appear in December and January Berlin accounts showing distribution to French sector but no corresponding contributions by French to magistrate stocks. According past experience, Soviets would be first to raise issue nonfulfillment.
- 8.
- All last year French Berlin appeared almost weekly at OMGUS asking help on food problem. Assistance was given not without difficulties. French failure to deliver repayments to US zone is one contributing factor in serious Wuerttemberg-Baden food crisis reported our telegram 2751, November 28.15
Sent Frankfurt as 55; repeated Department as 2913.
Murphy