USPolAd Files: 863.6 Coal: Telegram

71

The Under Secretary of the Army ( Draper ) to the Military Governor for Germany ( Clay ) at Berlin 72

secret

W–90954. Subj communiqué of Berlin Coal Conference.73 In view successful conclusion substantive issues Berlin Coal Agreement apparently only remaining question is French action on proposed informal [Page 726] collateral agreement re withdrawal London reservations level of industry.

French have given State Dept note74 stating willing to sign communiqué and to withdraw reservation to steel figure in new level industry, however unable withdraw reservations dye stuffs, machine tools and petroleum. British Embassy here has informed State Dept Sergent has proposed in Berlin following statement which he hopes to persuade French Government to agree to:

  • “1. At the moment when we are envisaging the publication of the communiqué relating to our Bipartite conversations in Sept on coke, Saar coal, and the extension of the Moscow sliding scale, I am auth [authorized] to inform you that the French Government has no intention to pursue objections publicly by means of press, radio, or otherwise, against the Bizonal Level of Industry Plan.
  • “2. In particular, the French Govt raises no objection to the level of 10,700,000 tons provided for steel production in the Bizonal Area, it being understood that this level will not be exceeded.
  • “3. Nevertheless, the French Delegation to the Council of Foreign Ministers must reserve the possibility, if the opportunity should arise, of expressing their point of view on certain provisions of the plan for the level of capacity in the Bizonal Area relating to machine tools, distillation of tar, and chlorine, as well as in respect of the prohibited industries.”

British Embassy states understanding OMGUS has gone “some way in expressing concurrence in these terms”. British Embassy states UK agreeable in London and Berlin accept communiqué with this statement and urges US acceptance.

Tactically it is important conclude these negotiations and issue communiqué soonest preferably before opening CFM. We do not like reservation but importance of French general support of US position CFM and precarious political situation in France makes announcement of agreement on coal particularly timely. State urges acceptance. Army prepared leave decision to you, although on balance Wilkinson and I are inclined favor acceptance. Also you may be able reach informal understanding with French in London which would minimize likelihood their criticising machine tool and other levels. See great advantage, however, in getting this matter behind us before general problem Germany discussed at CFM. In any case, consider you should point out to French that under terms Bizonal level question of permanent levels, including steel, is matter for Peace Treaty determination.75

Please inform Riddleberger.

  1. Frankfurt Consulate File, Lot F–80, Box 69.
  2. The text of this message was transmitted by the Department of State to Berlin in telegram 2359, November 22 and in telegram 4948, Secdel 1504, November 26, to London (862.60/11–2247 and 740.00119 Council/11–2647).
  3. Regarding the American-British-French conference in Berlin in September 1947 on the allocation of Saar coal to the French economy, see pp. 10891098.
  4. The note from the French Embassy, dated November 4, 1947, is not printed’ (862.6362/11–447).
  5. Telegram CC–2392, November 24, 1947, from the Deputy Military Governor for Germany, Major General George P. Hays, to Under Secretary of the Army Draper, reported that General Clay and the British had accepted Sergent’s proposed statement, but the French Government had not supported Sergent and had proposed the following alternative text:

    “At the moment of publication of the communiqué relating to our Tripartite conversations on coke, Saar coal and the extension of the Moscow sliding scale I am authorized to inform you that the French Government raises no objection to the level of 10,700,000 tons for the production of steel in the Bizonal area, it being understood that this level will not be exceeded and takes note of the Tripartite declaration in London 28 Aug 1947. In accordance with the terms of which: “The measures about to be taken should not result in priority being given to the rehabilitation of Germany over that of the democratic countries of Europe.”

    “The French Government is nevertheless of opinion that certain provisions of the Bizonal Level of Industry Plan relating in particular to machine tools, the distillation of tar and chlorine, as well as in respect of prohibited industries should be the subject of fresh discussions. The French Government has the intention of raising this question at the Conference of Foreign Ministers.”

    (USPolAd Files, Frankfurt Consulate Files, Lot F–80, Box 69, File–863.6 Coal)