The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received March 21—12:55 a.m.]
822. At 44th Coordinating Committee meeting, 18 March, French member61 read paper expressing his Government’s alarm about second [Page 769]quarter allocation coal exports by Fuel Committee of Economic Directorate. British, Soviet and United States members62 had agreed this allocation. French member had disagreed, believing proposed allocation excessively favored domestic German needs at expense of exports. He cited figures indicating steady drop in ratio of exports to total of exports and domestic German deliveries: in October the former constituted 24% of latter, whereas projected second quarter allocation is only 18.4% thereof. He also said total coal exports through April 30, 1946 would fall far short of 25 million ton goal set by President Truman last June [July] 26.63 He proposed second quarter allocation to zones be reduced to February-March level and difference transferred to export.
General Clay made sharp denial United States zone had failed deliver agreed quotas of coal. He also said industry, including fertilizer, agricultural equipment and processed foods, in United States zone operates at less than 15 percent, and priority as to coal actually had been given to requirements for security of Allied forces, disease and unrest formula etc.; furthermore it would be impossible to accomplish quadripartite program in Germany when all capital equipment, coal, etc., removed from Germany. He said that while United States program contemplated expenditures of 200 million dollars to bring to Germany food, exclusive of large quantities lent Allies, it had received no payments for exports, although agreement called for dollars in exchange. He believed lack of central German agencies hampered production and transport of coal, and failure receive adequate coal in United States zone had greatly increased burdens there. He proposed paper be sent to Economic Directorate with request it prepare and present impartial report to Coordinating Committee. British members seconded this, and after more debate Coordinating Committee agreed.