USPOLAD Germany Files: Telegram

The Chief of the Civil Affairs Division, War Department (Noce) to the United States Military Governor for Germany (Clay)

top secret

W–97271. Personal from Noce. Reurad Apr CC–8871,20 Apr CC–8733 [8933?],21 Apr CC–8959,22 Dec CC–72 and Dec CC–7404.22a

Fully appreciate problem you face by virtue of British tactics in going around you and raising Bizonal and Socialization issues on governmental level.
Tentative State Dept views re Socialization, not yet finalized, are as fols: [Page 915]
Public ownership action must be based upon full and free expression of popular will either by referendum, by legislative action based upon constitutional auth, or clearly expressed political party platform or the like;
No discrimination against foreign interests and adequate compensation must be provided therefore;
Public ownership at levels lower than national levels, except for national services such as posts, railroads, etc., consistent with Mil Govt policies such as denazification, deconcentration, internal restitution, etc.;
Full accountability on part of owning agencies with duty to report publicly on mgmt, financial position, employment policies, etc.
As you well appreciate, US Govt must make economic fusion work. It is my judgement, however, that this govt stands firmly behind our policy on politically decentralized German Govt, and economic controls decentralized to maximum extent consistent with policy envisaged in JCS–106723 and Potsdam for establishment of central economic agencies in fields requiring such control. It is believed that if details are entrusted to you, and if you are left free to attempt to work out issues in Germany, reporting back here your conclusions and recommendations for governmental apl, a reasonable compromise in best interest of this govt is possible.
Hilldring and Petersen are in sympathy with my views and it is hoped that within a reasonable time, you will be given firm instructions in accordance with above.

  1. Not printed.
  2. See footnote 18, p. 911.
  3. Supra.
  4. The December 1946 messages under reference here are not further identified.
  5. 1945 Policy Directive to the Commander in Chief of United States Forces of Occupation in Germany; for text, see Germany 1947–1949, pp. 21–33.