862.60/8–1947: Telegram
The Acting Secretary of State to the Embassy in the United Kingdom
3616. From War and State for Clay and Douglas. Reur NIACT 45003 we had understood agreement made by Clay and Robertson to be acceptable to UK Government which has not raised questions previously. Body of plan as agreed on between Clay and Robertson is plan to be laid on table for discussions with French. With respect to preamble, we can agree this might well be reworded. Preamble should set forth clearly that objectives of new level of industry plan among others are (1) to enable Germany to make its contribution to a coordinated program of European economic recovery but in a way as to preclude the revival of German military power; (2) to create a self-supporting German economy and a tolerable standard of living conducive to the growth of democracy; (3) to provide a firm basis for listing plants to be retained in Germany and those plants available for removal as reparations; (4) to correct the inconsistencies and assumptions (especially unification of Germany) in the old level of industry plan of March, 1946 which have subsequently failed to materialize. Question raised by British concerning retention capacity in prohibited [Page 1046] industries should be negotiated between Clay and British Zone representative, we relying Clay’s judgment.
Change in preamble also should be negotiated on same basis as original agreement, namely, by the Zonal Commanders.
At opening tripartite meeting French should be informed we expect announcement will be made Sept 1.