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

862.6362/8–2547: Telegram

The Ambassador in the United Kingdom (Douglas) to the Secretary of State

secret
urgent

London, August 25, 1947—midnight.

4613. At today’s restricted meeting⁶² Massigli pressed me to request Department to make the decision in the very near future to support the French desire to incorporate the Saar in the French economic and financial system and to agree to hold detailed negotiations on the transfer of Saar coal to France over a period of time as they requested in their note of last month.

It was made clear to the French by the British and ourselves that we were not prepared to accept the French proposals for the transfer of coal made in their July note. The French however, urgently desire a decision in principle and the commencement of negotiations at an early date which will provide them with some concessions, principally, I think, for public appeal in France.

Since I understand the Department has been considering this matter for some time, I suggest it attempt to meet the French desire for early detailed negotiations by agreeing to the principle involved unless the effect on the November CFM is believed too serious. The French, of course, consider that reason for delay in view of our position in other matters is rather inconsistent.

I realize of course that consideration must be given to the effect of any transfer of Saar coal to France on German balance of payments and ECO countries.

Sent Department 4613; repeated Paris for Caffery 482, Berlin for Clay and Murphy 403, Geneva for Clayton 134.

Douglas

62. The reference here is to one of the meetings in the American-British-French conversations on the revised level of industry plan for the Western zones of occupation in Germany, held in London, August 22–27, 1947. Other reports on these conversations are printed ante, pp. 1047–1066.