862.6362/9–1747: Telegram
The Acting Secretary of State to the Embassy in the United Kingdom
4178. For the Ambassador. While Coal Conference approved in principle provisional agreement previously reached by US and UK Mil Govts on establishment of German Coal Management under US/UK Control Group, implementation delayed pending completion consultations with Benelux and France on management proposals, including provisions for protection foreign owners (reurtel 5023, Sept 1790).
Dept wd appreciate info on status Brit consultations Benelux, and request you urge on FonOf prompt conclusion such consultations so [Page 967] that management proposal may be implemented. Except for Neth note of Sept 991 criticizing German coal managers powers as undue concentration of authority and objecting to inability allied owners to appoint managers to own properties, Dept has received only general protest from Luxembourg as well as France regarding application socialization, decartellization, deconcentration, etc. measures to foreign-owned mines in Germany.92
Fr presented note Sept 1793 protesting against US/UK coal management proposals on ground they wd (1) dispose US and UK unfavorably toward eventual adoption definitive settlement in accordance with Fr ideas and involving Allied direction and closer international control of mines, (2) create powerful German organization with means to exert considerable economic pressure, (3) mean further relaxation of Allied controls over distribution of coal, (4) impair property rights of foreign mine owners by subordinating them to German management, and (5) deprive foreign owners (including Saar owners) of right of representation when they jointly but not individually hold at least 51 percent beneficial interest. Fr note also protests against Brit practice since June 1947 of characterizing as interest-bearing loans the subventions paid from zonal budget to mines covering difference between cost of production and sales prices of coal and against application of projected Brit zone land reform law to land holdings of foreign owners of mines.
Dept inclined to reply that (1) coal production can be maximized in interest of Europe only if full responsibility for production entrusted to Germans under US/UK supervision and policy direction, (2) single German management for all mines in Ruhr-Aachen area desired because necessary to have one agency to draw up and implement production plans for industry and take necessary steps before occupying authorities and German authority to insure requirements of materials, manpower, etc. for industry are met, (3) inclusion of foreign-owned mines in German management scheme essential to development and implementation industry production plans, (4) foreign owners suffer no discrimination under scheme and will in any event have right of appeal if convinced their rights unfairly impaired, (5) occupying authorities will retain control and resort to inspection [Page 968] to hold Germans to proper discharge their responsibilities, and (6) German management of industry fully compatible with international control over disposition of output. Will indicate willingness, subject to concurrence of OMGUS, to have group of owners representing together at least 51 percent beneficial interest in mining property appoint representatives to such property. Regarding Neth request to name managers to foreign-owned mines Dept might consider, subject to approval by OMGUS, nomination of managers by foreign-owners with final designation by German general manager with understanding such foreign managers subordinated to overall direction German general manager.
Pis discuss outlined replies with Brit who presumably have received similar notes since important replies be along similar lines.94
Copy coal conference report being dispatched to you.
- Not printed.↩
- Not printed.↩
- A memorandum setting forth the views of the French, Belgian, and Luxembourg industrialists concerning the control and treatment of certain coal mines in the British zone of occupation in Germany was transmitted to the Department of State in notes from the Luxembourg Minister dated August 28, from the French Ambassador dated August 29, and from the Belgian Embassy dated September 9, none printed (862.6362/8–2847, 862.6362/8–2947 and 862.6362/9–947).↩
- Not printed (862.6362/9–1747). On September 26, the Department of State received a note from the Belgian Embassy objecting to aspects of the proposed German coal management plan (862.6362/9–2647).↩
- Negotiations between the United States and United Kingdom Governments regarding a common reply to be made to the French, Belgian, Netherlands, and Luxembourg Governments were carried on during October and early November and eventuated in the memorandum of November 14, 1947, p. 972.↩