740.00119 Council/4–1647: Telegram

The Secretary of State to the Acting Secretary of State

confidential
urgent

1410. Delsec 1432. For the President, Vandenberg, Connally and Acheson from Marshall. Thirtieth CFM meeting, April 16, Bidault presiding, continued discussion of the report of the coal experts of the four occupying powers.71 Although Marshall and Bevin stated yesterday that nothing more than taking note of the coal report could be done until economic unity was achieved in Germany, Molotov insisted today that the council act on the coal problem. He asked (1) that German coal production be raised to the pre-war level within two or three years; (2) that 20 to 25 percent of German coal production be exported, one-half of this for reparations; (3) that a special quadripartite [Page 347] agency under ACC be set up to control the production and allocation of German coal as well as a second quadripartite agency to control coal mined in the Ruhr.72

Bevin restated his opposition to acting on the coal problem prior to real agreement on economic unity; flatly rejected using coal for reparation payments and promised that the British would do their best to continue increasing coal production in their zone.

Marshall also rejected Molotov’s suggestions. He restated his opposition to quadripartite allocation of coal until German resources in all zones are allocated on a quadripartite basis, adding that the solution of this problem depended on obtaining economic unity.

Bidault said he had nothing to add to his statement of yesterday in which he proposed (1) that the Saar be included in the economic sphere of France, (2) that the distribution of Ruhr coal be assured by an international agency, and (3) that the present method of coal allocation in Germany be modified.

The council then began the discussion of the draft treaty for Austria.73 It was agreed to hear the views of representatives of Yugoslavia and Austria at special morning meetings beginning tomorrow.

The council agreed that the treaty would be signed only by the US, UK, Soviet Union and France but certain other states may adhere to it. Differences arose over whether the preamble of the treaty should include the sentence “Austria cannot avoid certain responsibility arising from participation in the war”. Molotov insisted Austria’s war responsibility be noted.74 Marshall suggested that the substitution of “responsibility” by the word “consequences” would reflect the fact that Austria was not a political entity after its annexation by Germany and therefore not responsible as a separate state during the war. Bidault preferred the word “responsibilities” and Marshall accepted this change after pointing out that war guilt clauses are easy to write but, as history shows, they poison the atmosphere. Bevin also agreed but Molotov would not and the clause was left in suspense.

The council approved the first clause of the treaty, stating that the Allied and associated powers recognize that Austria is re-established as a sovereign, independent and democratic state. The second clause, which is a pledge by the Allied and associated powers to respect the independence and territorial integrity of Austria, was supported by [Page 348] Marshall and Bidault but opposed by Molotov who suggested it be passed over for further study.

During a discussion of the clause prohibiting an anschluss between Germany and Austria, Marshall said US does not want to impose onerous conditions on Austria which would prevent normal economic activity. He asked the other ministers to accept this understanding. Bevin and Bidault accepted but Molotov said he had no comment to make.

The clause establishing the frontiers of Austria as those existing on January 1, 1938 (which is accepted by the US, UK and France) was passed over until the Yugoslav delegation presents its territorial claims against Austria which are supported by the Soviet Union.

The council adjourned after having discussed the preamble and 15 of the draft treaty’s 50 clauses.

Dept please pass to Vienna as 39, to Rome as 36, and to Paris as 143. Sent Dept as 1410, repeated London 159, Berlin 277.

[
Marshall
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  1. The discussion resumed here had begun at the previous meeting of the Council; see ante, p. 334.
  2. For a more detailed record of Molotov’s statement on German coal production, see Molotov, Speeches and Statements at Moscow, pp. 99–100.
  3. Document CFM(47) (M)82, March 29, 1947, p. 516.
  4. Molotov’s statements at this meeting regarding the draft Austrian peace treaty are summarized and quoted in Molotov, Speeches and Statements at Moscow, pp. 100–101.