862.60/7–2547: Telegram

The Political Adviser for Germany ( Murphy ) to the Secretary of State

top secret
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1771. Personal for the Secretary. Eyes Only. Thus far we have only press reports regarding your position on the German bizonal level of industry. General Clay has kept me informed of his exchanges with the War Department on the subject and has asked me whether the Department has supplied information regarding its attitude. Petersen informed Clay that he and Secretary Royall had only yesterday learned with “shocked surprise” of the Department’s decision to postpone announcement of the new bizonal level of industry and to consult with the French prior to any announcement and I understand that Secretary Royall is to see you today and may make the point that there has been no consultation either with Military Government, Germany, or with the War Department. This Mission officially is in the dark regarding this development. American correspondents in Berlin are pressing for guidance as to State’s position.

For your strictly personal information, I also understand that General Clay has informally indicated to Petersen that under the circumstances his usefulness here would appear to be at an end and that [Page 1009] the best solution would be for him to be called to Washington ostensibly for the Coal Conference47 but actually for the purpose of resignation. I believe that if Clay does retire under these circumstances he may feel obliged to make certain public statements of his views and his disagreement with what he understands has happened. I pointed out to him that thus far the Department has not yet informed him of the facts and that what we have now is largely a newspaper understanding. I would be grateful for the benefit of your advice.

Murphy
  1. The reference here is to the American-British conference in Washington in August and September 1947 on measures for the control of German coal production; for documentation, see pp. 909 ff.