740.00119 Control (Germany)/9–147: Telegram

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

secret

3006. As anticipated, 69th meeting Control Council26 held August 30 brought forth lengthy Soviet protest against new British-American bizonal industry level announcement. Referring to governmental note August 18,27 latest bizonal measures branded as rupture of Potsdam Agreement and quadripartite procedure, and another step in process of dismemberment of Germany, following original bizonal merger and subsequent establishment Economic Council. German resources will thus be taken away from German hands and come under influence certain foreign monopoly interests.

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French member28 referred only to official French communiqué published day before. British member29 quoted in his reply from official Foreign Office reply to Soviet Government. US member,30 while reserving right reply later in detail, emphasized great efforts made by US delegation for 2 years to achieve economic unification Germany, that invitation to other powers to join present bi-zonal merger still open, but meanwhile US not prepared sit by and watch American zone become economic quagmire unable support self or contribute European recovery.

Repeated London as 316; Paris as 386.

Dept please relay Moscow as 476.

Murphy
  1. I.e., Allied Control Council for Germany; for additional documentation on the participation of the United States in the work of the Allied Control Authority for Germany, see pp. 831 ff.
  2. Regarding the note of August 18, 1947, from Soviet Chargé Tsarapkin to the Acting Secretary of State, see the editorial note, p. 1039.
  3. General Koenig.
  4. Marshal Douglas.
  5. General Clay.