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

The War Department to the United States Military Governor for Germany ( Clay ) at Berlin ⁵⁰

[ Washington ,] July 28, 1947.

Personal for Clay from Royall and Personal to Murphy from Marshall.

Part I. The following understanding⁵¹ supplements the agreement expressed in cable of 26 July to Clay and Murphy:⁵²

1. No other country will have any vote, veto or power of decision as to the bi-zonal level of industry, and no liaison representative or other representative of any other government will participate in any bi-zonal or other US–UK conferences as to the bi-zonal level of industry.

2. If any Government presents to the U.S. Government its views as to the level of industry plan, the State Dept may transmit these views to the bi-zonal authorities for their consideration. Such views will be appraised by the bi-zonal authorities and given such weight as is thought proper, and their recommendation on the fundamental questions of the level of industry forwarded to the U.S. and U.K. Governments for approval.

3. As stated in the cable of July 26 referred to above, public announcement of the new bi-zonal level of industry agreement will be made at the earliest possible date and is expected, in any case, to be not later than September 1, 1947. If the timing permits, the bi-zonal level of industry agreement should be presented, simultaneously with its public announcement, to the appropriate committee of the Paris Conference as a part of any general plan of western European reconstruction.

4. If an invitation from the Paris Conference for American representation is accepted the delegation would be expected to include representatives of the War Department and the Theater Commander.

Part II

5. The U.S.–U.K. coal conference will take place in Washington as scheduled and no other government will be invited to participate. No other country will have any vote, veto or power of decision as to the ownership, management or other matter affecting the coal industry in the bi-zonal area, and unless future circumstances make it imperative, no liaison or other representative of any other government will be present in any bi-zonal or other U.S.–U.K. conference dealing with coal in the bi-zonal area. During the course of the coal conference only such information concerning its deliberations which the State and War Departments agree is appropriate for release will be given to the representatives of any other government in such manner as the State Department may determine.

6. If any government presents to the State Department its views as to coal in the bi-zonal area, the State Department may transmit these views to the members of the coal conference, if then in session, and to the bi-zonal authorities for their consideration. Such views will be appraised by the bi-zonal authorities and given such weight as is thought proper. Where fundamental principles are involved, such views may be transmitted to the bi-zonal authorities with directions that final action thereon not be taken until a governmental decision has been reached.

7. It is agreed that the export price of coal is a matter for final determination and announcement by the bi-zonal authorities subject to any immediate increase in price being confirmed by the coal conference.

50. The source text for this telegram is included in the files of the Office of European Affairs, Division of Western European Affairs, Lot 53 D 246, file “Germany–General”.
51. On July 28 Secretary Marshall and Secretary Royall met to resolve differences of opinion over a memorandum of understanding proposed by the Department of State. No record of that meeting has been found.
52. Supra.