862.6362/9–647: Telegram

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

top secret
urgent

1828. For Murphy and Clay. Following note handed French Chargé d’Affaires this morning:

“The most careful consideration has been given to your note No. 295 of September 4, 194769 which contained the desiderata of your Government [Page 1092] with respect to the scope of the tripartite conversations on German coal which are scheduled to open in Berlin early next week. In particular the note set forth the desire of your Government that the United States representative at the talks be empowered to seek a solution of the problems to be considered within the framework of the French proposals, previously communicated to this Government, that the coal of the Saar be progressively considered as French rather than German.

You are familiar with the firm desire of the United States Government to see accomplished the economic integration of the Saar territory with France. My Government regrets that the failure of the occupying powers to reach unanimous agreement has so long delayed this integration; it will continue to support French wishes to that end.

The French Government has proposed that, in advance of a change in the status of the Saar territory, progressively increased quantities of Saar coal be allocated by tripartite agreement to France and that the European Coal Organization be so informed by the representatives of France, Great Britain and the United States. It is the contention of the French Government that there is no legal impediment to such tripartite decision since exports of western German coal have for some time been determined on a tripartite basis. While such legal impediment does not exist, my Government believes that any tripartite decision to allocate Saar coal directly and in advance of a change in the territorial status of the Saar and so remove part of German coal exports from the allocation procedures of the European Coal Organization would not only be inconsistent with the support which both our Governments have heretofore given to that useful organization but would also not be in harmony with the spirit of the Committee on European Economic Cooperation at which sixteen European nations are represented and in which France is taking a brilliant part. Consequently, my Government feels it cannot agree to such a decision at this time.

Desirous, however, of preparing the way for the change in the status of the Saar territory which it has agreed to support, my Government has instructed its representative at Berlin to participate in negotiations with respect to the transfer of Saar coal from the German economy into the French economy, such transfer to take effect immediately upon the change in status of the Saar territory which both our Governments wish to see effected. The negotiations would not, however, cover the financial problems incident to such transfer.

In addition, the representative of my Government in Berlin will discuss, as was agreed recently in London, the French request that there should be an adjustment of the present arrangements to permit of a greater proportion of coke in the present export allocations and that there should be a review of the sliding scale agreement for Ruhr coal and coke exports with a view to extending it beyond the present figures.”

Following remarks were made orally to Chargé d’Affaires after delivery note.

1)
French Government has given us oral indication of its willingness fuse its zone with trizonal area after November CFM if latter [Page 1093] does not result in economic unification Germany by four-power agreement. US Govt for its part now declares its willingness agree to economic integration of Saar into France by tripartite decision immediately after November CFM if latter does not agree to such integration and in connection with French decision to fuse French zone with bizonal area.
2)
Agreement to be negotiated for transfer Saar coal to France would take effect immediately upon change of status of Saar territory. Lacoste was especially invited to note that it was felt, as indicated in note, that financial aspects of transfer should not be discussed at Berlin. These aspects would, of course, play important part in negotiations for trizonal fusion.
3)
Our decision to negotiate for transfer Saar coal to France to take effect at time of integration of Saar into French economy was without prejudice to US position in ECO in event ECO wished make compensatory changes in allocations coal available to ECO pool.70

Sent Berlin as 1828; repeated Paris for Clayton and Caffery as 3364 and London for Douglas as 3871.

Lovett
  1. Not printed.
  2. Telegram 3631, September 22, to Paris, not printed, reported that in reply to the Department’s note of September 6 and the oral remarks made to the French Chargé the same day, the French Embassy stated inter alia that the French Government could agree to trizonal fusion only “within the framework of preliminary settlement essential problems relative to three zones such as status of Ruhr; political and territorial organization; demilitarization and occupation; or at very least immediate aspects these problems.” (862.60/9–1647) American-French discussions regarding trizonal fusion were carried on before, during, and after the Fifth Session of the Council of Foreign Ministers, November 25–December 12, 1947. For documentation regarding the Council session, see pp. 676 ff.