740.00119 Control (Rumania)/5–946: Telegram

The Representative in Rumania (Berry) to the Secretary of State


484. Russian ACC officials suggest that ACC propose to Rumanian Govt adoption of following five point program in view of facilitating Rumanian economic recovery:

Organization of centralized industrial planning agency.
Establishment of Government control over export and import of all goods with special attention to early import of essential raw materials and semi-finished products.
Closer supervision over activities of all Rumanian banks to insure full utilization of bank credits by those industries considered to be most important to Rumanian economy.
Establishment of new controls over distribution of liquid and solid fuels to eliminate present bottlenecks in this distribution.
Revision of the budget with a view to approaching balance in near future.

At ACC meeting (see mydesp 901, May 369) General Schuyler said he felt questions involving stricter Govt control of private enterprise must be carefully examined before being accepted. He had in mind the notorious inefficient and graft ridden reputation of Rumanian Govt which has shown itself incapable of establishing and enforcing just and impartial system of economic controls. The General added he would prefer to see the Govt take steps to encourage private enterprise and to release it from most controls already existing, particularly in the matter of foreign trade.

General Schuyler has now asked advice as to line he should take in ACC discussion, since the ACC may take action that influences economic developments in Rumania that being a question loosely related to foreign policy of American Govt.70

Repeated to Secdel Paris as 39.

  1. Not printed.
  2. Telegram 507, May 20, from Bucharest, reported that during a recent meeting of the Allied Control Commission for Rumania, Soviet Acting Chairman Susaikov said that the suggestions made by Soviet authorities for the economic rehabilitation of Rumania “were made in the full knowledge that Rumania is capitalistic country with remnants of a feudal system and no one is suggesting a Sovietization [of] Rumanian economy.” Susaikov added that even a capitalistic society in times of stress must have distribution and production controls. (740.00119 Control (Rumania)/5–2046)