862.60/7–2447

The British Chargé (Balfour) to the Secretary of State

most immediate
secret
Ref: G67/–/47

My Dear Mr. Secretary: In his message to you of July 22,42 which I conveyed to you in my letter on that date, Mr. Bevin said that he hoped to let you know, within forty-eight hours, the views of the United Kingdom Government on the French protest regarding the German level of industry plan. This question has now been considered by ministers in London and Mr. Bevin has been authorized to suggest to you that the United States and United Kingdom Governments should now reply to the French Government on the following lines.

[Page 1006]
(a)
Nothing further will be done in the direction of implementing the level of industry plan until the beginning of September.
(b)
In the interval, the United States and United Kingdom Governments will be prepared to consider any representations that the French Government may care to make to them on the subject of the level of industry plan, although they cannot concede that France, not being a party to the fusion, has an equal right with themselves to determine the level of industry in the bi-zonal area, especially having regard to the financial drain upon them.
(c)
In these circumstances, and in view of the desirability of doing nothing to complicate the work of the Paris Conference, it is hoped that the French Government, should they wish to raise any questions about the level of industry plan, will do so direct with the United States and United Kingdom Governments and not at the Conference.
(d)
No further action will be taken before the beginning of September in the direction of implementing the Anglo-American Agreement tentatively reached in Berlin concerning the management of the coal industry and in the interval the two Governments will be ready to consider any representations that the French Government may wish to make to them on this subject.

2. Mr. Bevin would be grateful if you could let him know as soon as possible whether you agree to a communication in the foregoing sense being addressed to the French Government. Mr. Bevin is anxious to send instructions to His Majesty’s Ambassador in Paris as soon as possible since he understands that M. Bidault may have to answer a Parliamentary question on the subject on July 25.

3. I will be very pleased to transmit your answer to Mr. Bevin by most immediate telegram.

Yours sincerely,

John Balfour
  1. Ante, p. 1000.