862.60/8–1947: Telegram
The Ambassador in France (Caffery) to the Secretary of State
3316. From Caffery, Clayton and Douglas.
- 1.
- Have conveyed to French our desire to postpone further Ruhr discussions reasons given in London’s 444594 and Deptel to London 353395 and 349996 and arranged for tripartite talks to start on August 22, French being unable start sooner.
- 2.
- Douglas hopes to hold discussions continuously including Sunday until level of industry discussion is concluded. He is attempting with use Martin, Jacobs and others to reach agreement with UK Foreign Office on details of agenda, the way in which we will deal with any questions which French may raise in London in accordance with Department’s instructions, and tentative draft official communiqué so that we may meet French with unified position. Will report fully.
- 3.
- Fully realize importance level of industry announcement on or about September first.
- 4.
- Douglas appreciates approval of request for permission to take sympathetic attitude toward French proposal on international allocation [Page 1040] board suggestion and to agree to discussion at appropriate time and place.
- 5.
- We recommend that Douglas be given authority at conference to say to French that the appropriate time for holding a meeting of US, UK and French representatives to reach at least preliminary agreement and possibly to agree on a public statement on this question is immediately after the London talks. We urge that you reach early decision in broad terms on US policy in this matter to make such a procedure feasible.
- 6.
- Consider tripartite meeting of minds along lines Paris Embtel 327097 would be important step forward along difficult road of agreement on German settlement. If at same time, important contribution can be made to strengthening present French Government, it appears to us difficult to justify delay in reaching decision on US policy which must be made in near future in any case.
- The question of disposition of products of Ruhr is one of the central facts in preparation of European program at Paris conference. If French do not have at least preliminary understanding with US and UK, it is not likely that they will alter figures for steel production in France which follow generally the Monnet plan. This, in turn, will affect the program, distort it violently, and make it unrealistic in the following respects: The production of French steel, the production of fertilizers, the employment of manpower, French agricultural production, and both French and bi-zonal balance of payments and possibly balance of payments of other countries.
- In this connection would appreciate Department views on our analysis of importance of this issue in French political scene and of the threat to accomplishment of original purpose of London tripartite conference, and the freezing of French antagonism to our German economic policy which would follow failure to make any effort to meet it in near future. (Paris 3270). We are convinced that on every score it is essential that we be authorized to proceed with discussions with French and UK along lines of previously reported talks in order at least to arrive at preliminary understandings as to allocating board for Ruhr production.
- 7.
- If you can approve indicating to French our willingness to discuss matter in the immediate future, will seek UK concurrence in this course of action. Suggest following amended form of statement discussed with French last week as basis for your consideration.
“Preamble:
The objective is, on the one hand, to insure that the Ruhr can never again be used as an instrument of aggression and, on the other, that [Page 1041] access to the products of the Ruhr shall not be at the exclusive will of Germany, as in the past.
- 1.
- Accordingly the United States, France and the UK will join in support of inclusion in a binding international agreement in connection with the peace settlement with Germany (presumably the peace treaty or the disarmament and demilitarization treaty) of articles providing for the establishment of an international board composed of representatives of US, France, UK, Benelux and Germany, with power to allocate Ruhr output of coal, coke and steel between German internal consumption and exports, so as to insure that the allocations for German consumption are used for peaceful purposes only in accordance with demilitarization and disarmament measures which are agreed in the peace settlement, these allocations to be made (a) to meet the problems presented by critical shortages of those products in Europe, or (b) with due regard to price, and most efficient use. (Note: From (a) to (b) is underlined.) The allocations made for German consumption shall be adequate to meet Germany’s economic needs for a reasonable standard of living.
- 2.
-
US, France, and UK agree that provisions for adequate powers to enforce by sanctions or otherwise the decisions of the board should be incorporated in the international agreement referred to above.
The US will draft with France and UK a broadly phrased public statement incorporating the substance of the above position.
France will agree to begin negotiations for the purpose of adhering to the bi-zonal fusion agreement not later than the close of the November CFM meeting unless such meeting results in quadripartite unification.”
Our immediately following telegram,98 giving particulars of our discussion with Bidault this afternoon, confirms the recommendations herein made.
Sent Department, repeated London as 644.