740.00119 Council/12–947: Telegram
The United States Delegation at the Council of Foreign Ministers to President Truman, the Acting Secretary of State, and Others
urgent
6402. Delsec 1534. For the President, Vandenberg, Connally, Eaton, Bloom and Lovett. Thirteenth CFM meeting, December 9, Bevin presiding, continued the discussion of economic principles for Germany.32 After an exchange of views, Molotov proposed and the Council agreed to postpone consideration of the UK suggestion33 that the controlling powers of Germany share equitably the financial burden already incurred and which may be incurred by them in the future in Germany.
Marshall supported the British suggestion that all restrictions on the movement of goods between the different zones of Germany be abolished and that the resources of each part of Germany and all goods imported into Germany should be used for the benefit of the country as a whole.34 Molotov said the creation of central administrative agencies and the setting up of procedure for the fulfillment by Germany of its reparations and other main obligations must be decided simultaneously [Page 760] with the decision of the free movement of goods throughout Germany. He blamed on inaccurate translation the belief of the other delegations that he had made his decision on the free movement of German goods conditional on the acceptance of the two other actions. Marshall said the German reparations question was decided at Potsdam and that he did not know of any additional procedures necessary to the fulfillment by Germany of its reparations obligations. Bidault again asked Molotov for the Soviet position on the Saar and when Molotov said this could be discussed later, Bidault indicated he would continue to reserve his position on the creation of central administrative agencies for Germany.
Since full agreement was not possible, discussion turned to the proposal for a common export-import program for Germany35 which was accepted in principle. This program would allow for the equitable distribution of indigenous resources throughout Germany and would be designed to achieve as soon as possible sufficient balance of exports over imports. It would take into account the need to increase Germany’s peace-time production.
The Ministers discussed the repayment of money advanced by the controlling powers to pay for imports required by the German people.36 Marshall and Bevin agreed that repayment of this money should be the first charge on Germany’s foreign exchange resources after its essential needs have been met. They also agreed that the value of all exports or proceeds of exports which have been received by the occupying powers from German current production and stock, whether or not these exports were taken as reparations, will be credited to the German account when the computation is made of the sum to be repaid. Molotov made several allegations which were refuted by Bevin and Marshall, concerning the price of German coal exports. The Council adjourned without resolving differences over the “first charge” proposal.
Repeated to Moscow, Paris, Berlin, Vienna, Rome.