740.00119 Council/4–1447: Telegram
The United States Military Governor for Germany (Clay) to Major General William H. Draper at Moscow39
Relative your radio MA–51238,40 I cannot recommend any definite figure for steel capacity to be left in Germany. In any event, it should first be fixed to meet needs of Western Germany on a self-sustaining basis which in view of larger export program because of excess concentration of population may well be larger than required for Germany as a whole. The figure of ten million tons is pulled out of the hat as far as I am concerned. I had agreed some time ago with Robertson for a joint study to be placed before our respective governments. Also, I would not want to agree to allocate any more plants to Soviets prior to economic unification. In event Germany is separated, they should be required to give up these plants in payment for products taken into reparation. I would also doubt advisability of indirect allocations to Soviet-dominated countries if economic unity fails. Obviously, IARA would have great difficulty in handling allocations on this basis. I point out that regardless of allocation, we cannot move any more than the quantities now allocated this calendar year. I urge that no commitments be made with the British other than to study the problem with a deadline date of say 1 July for reporting to our governments. In view of my recommendation, I do not see how I can contribute to discussion and I have no desire to do so in view of my obligations here. If the Secretary desires or needs me, I am, of course, at his disposal.