862.6362/9–547: Telegram
The Acting Secretary of
State to the Embassy in the United
Kingdom
top secret
Washington, September 5, 1947—9 p.m.
3868. For the Ambassador. Following cable being sent CinCEur, Berlin re US-UK talks with
French in Berlin on coal, coke and Saar coal. CC 14732 from Clay, 3041 from Murphy (sent London personal for Douglas as 31964) and Nos 4801 and 4802 from
London65
considered in preparing this cable:
- “1. Urad has been
considered here in light new French note of 4 Sept66
requesting Berlin coal discussions be broadened to
include not only gradual absorption of Saar coal output
by France but also upward revision of percentages of
German coal output to be exported under Moscow
sliding-scale agreement.67
- 2. State Dept
informing French upward revision of percentages of
sliding-scale agreement as proposed by them at London
Conference
[Page 1091]
entirely unacceptable. (See para. 1 a London’s 422 to
Berlin of 4 Sept.68) Concur, however, in ur suggestion
that you negotiate gradual absorption of Saar coal into
French economy provided that such diversion of Saar coal
to France should begin only after status of Saar is
changed. For ur info US prepared to change status of
Saar, in connection with trizonal unification, by
tripartite decision immediately after CFM if latter does not
reach agreement on question and French will be so
informed. Until status of Saar changed, Saar coal must
be regarded as German coal and to extent exported must
be added to export pool allocated by ECO. To make special
agreement on distribution of Saar coal before change of
Saar status would be to circumvent ECO, successful organ of
European economic cooperation, at very time we are
insisting on achievement maximum European cooperation at
Paris.
- 3. In negotiating agreement re progressive absorption
of Saar coal by France, it should be understood that
such action is without prejudice to any resulting
changes in allocation of pool ECO might make. It should also not
prejudice eventual discussion of question of payment for
Saar coal which will continue to be consumed in Germany,
since we may wish to insist in eventual discussions on
trizonal (or quadrizonal, if CFM reaches agreement on treatment of
Germany as economic unit) fusion on French contribution
to support of German economy in form of cost-free Saar
coal.
- 4. We have no objection to adjustment of export
percentages in sliding-scale agreement to take into
account any agreement you may reach on progressive
withdrawal of Saar coal from German coal pool available
for German consumption and export.
- 5. French being informed here accordingly.
- 6. British views sent by Foreign Office to Berlin have
been furnished us.
- 7. In view of urgency suggest you coordinate views
with British there. If you feel you do not have
sufficient latitude for negotiation with French, cable
your views.”
Repeat to Paris for Ambassador.
