711.51/8–847: Telegram
The Secretary of State to the Embassy in the United Kingdom
3463. For the Ambassador. As Dept is fully aware, the tripartite discussions referred to in Deptel 3415 of Aug 876 pose questions of procedure and substance which it may be difficult to resolve. As indicated in Deptel 3415, every effort should be made to conclude the discussions regarding level of industry within one week, in order that it may be possible to make public announcement at the earliest possible date, which in our opinion should not be later than September 1, 1947.
[Page 1028]part i.—level of industry discussions
1. The purpose of the discussions is to give the French Govt an opportunity to express its views on the new level of industry for Germany agreed upon by the US and UK zonal commanders. Whereas the French should be accorded every opportunity to make a full statement of their views in writing and orally, you should make it clear that in the absence of a fusion of the French zone with the US and UK zones, the US and UK are responsible for and will take final decision on all matters regarding the bizonal area. You should explain the objectives of the plan for the level of industry agreed to by Generals Clay and Robertson and be prepared to furnish such information as is requested and may be necessary to a full understanding of the plan.
2. You should support vigorously the level of industry agreement reached by Clay with Robertson and defend it against any suggestions from other nations for modification. If in your judgment there is a genuine threat to the success of the European economic plan or if democracy in France will be threatened unless changes are made in the new level of industry agreement, you should transmit to the Dept the views of yourself and your advisors, together with the French and British views. Final determination of the US position will be coordinated with the War Dept here.
3. The questions of resumption of reparations and the rate of reactivation of German industry should not be discussed unless you receive later instruction regarding these subjects.
4. If the French should propose a discussion of international ownership or management of Ruhr industries as a condition to their acceptance of the bizonal level of industry agreement, you should point out that “acceptance” is not involved, and that, further, the issue raised by them has such broad implications to the German settlement generally that it can only be discussed at or after the November CFM Meeting. However, if the French propose an International Board with allocating functions only, or if the French raise other questions concerning political or economic security guarantees, you should not comment but immediately transmit the French proposal to the Department with your comments.
5. If a question arises concerning arrangements for adherence by the French to the bizonal agreement, you should repeat the US position that such adherence continues to be desired by your Government and that a formal French proposal will be welcomed. However, decision on bizonal level of industry cannot be delayed pending receipt or discussion of any such proposals.
[Page 1029]6. If the French should raise the question of the transfer of the Saar you should reply that it is your understanding that this subject is being dealt with through diplomatic channels and that you have no instructions to discuss it.
part ii.—management and control of ruhr coal mines
7. We hope it will be possible for you to conclude the level of industry talks before getting into the subject of the management and control of coal. Further instructions concerning discussions on the latter subject will be transmitted to you. It is possible, in light of what Bidault has told Clayton, that the French will not wish to spend much time on the coal management problem, and possibly not much on the control question.
part iii.—publicity
8. It will of course be necessary to issue some communiqué at the close of the talks in London. This will certainly be important from the point of view of the French. It will be helpful to have your suggestions when the time comes as to the type of communiqué to be issued, for clearance in advance by Dept.