740.00119 Council/4–247: Telegram
The Secretary of State to the Acting Secretary of State
1167. Delsec 1385. To Acheson Personal Eyes Only for the President from Marshall. Your message11 reached me after I had made proposal informally in an executive meeting of CFM12 called at my request and I had agreed, on request, to submit it in writing. I made clear that my proposal for study for limited purpose stated was without commitment.
I am fearful that terms, which you suggest be made clear in advance of study, are somewhat too restrictive and may not afford necessary elbow room for negotiation.
Proposed study is to consider only adequate compensation for withdrawal of plants from capital removals sanctioned by Potsdam. It is not practical for us to agree to necessity for substantially higher level of industry and at the same time to suggest conditions which may [Page 307] make the Allies, who are to be deprived of capital removals contemplated by Potsdam, feel that offer of current production to them is wholly illusory. The Allies who have not yet received capital removals would receive some capital removals before they or the Soviets can receive any current production.
In accordance with my agreement I am submitting the following proposal which is intended to guard the substance of the points you have in mind:
[Here follows the text of Secretary Marshall’s proposal regarding the level of German industry and reparations from current production, circulated to the Council of Foreign Ministers as document CFM(47) (M) 97, April 3; for the full text, see Germany 1947–1949, page 410, or Department of State Bulletin, April 13, 1947, pages 652–653.]