Foreign Relations of the United States, 1947, Council of Foreign Ministers; Germany and Austria, Volume II

840.50 Recovery/9–847: Telegram

The Ambassador in the United Kingdom (Douglas) to the Acting Secretary of State

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London, September 8, 1947—6 p.m.

4863. For Lovett. Met this morning with Bevin, Sir Gilmour Jenkins and Hoyer–Millar (Deptel 3854, September 5⁷⁹).

1. While Bevin had hoped that US–UK negotiations for the revision of the bizonal fusion agreement would commence immediately, and is disappointed that this is not the case, he understands the reason for the delay and agrees to October 8 as the day on which they will commence.

2. As to the agreement on the question of the control group in its relationship to the coal conference report, he agrees in principle that there should be established a US–UK control group, but believes that the nature and composition of the control group should not now be fixed. UK believes that any specific definition of the composition and nature of the US control group which might now be made, might be changed either in the light of the final results of the US–UK negotiations regarding revision of the fusion agreement or after such negotiations commence, in the light of the trend which the negotiations might indicate before their completion. UK believes that to establish a definite US–UK control group now, and to change it a month or six weeks from now, would cause confusion in Germany and would give the impression of vacillation. UK believes it preferable to wait a short period and then to define the composition and nature of the US–UK control group once and for all.

3. Bevin urges that, in addition to the UK, US consult with the Benelux countries and France in regard to the coal management plan, particularly as it affects the limited number of coal mines in which the nationals of these countries have more than a 51 percent interest.

4. Immediately after the consultations referred to in paragraph 3, it is Bevin’s view that the first step should be to transfer management of the coal properties to the Germans as contemplated in the management agreement.

5. After having effected the transfer referred to in paragraph 4, and contemporaneously with knowledge of the trend of US–UK negotiations in respect of the fusion agreement, determination of the composition and nature of the US–UK control group should be made.

His concern that this be the chronological order of events, in addition to the reasons referred to in paragraph 2 above, is due to his apprehension that prior determination in detail of the US–UK control group would carry the implication of mismanagement on the part of the British and lay him open to criticism from certain members of his party and from the opposition.

Douglas

79. Not printed; it reported that the termination of the American-British coal conference in Washington was delayed pending British acceptance of the terms of the proposed German coal management agreement (see p. 940). (862.6362/9–547)